Why it’s the right time to source from India
It’s a very interesting time in India today. Over the last seven years India moved from being the 10th largest economy in the world to the fifth largest economy and with the current projected rate of growth, India will be in the top three before the end of this decade.
This is encouraging for all those businesses looking to trade with India as it creates opportunities which weren’t possible before.
“With this growth will come significant improvements in infrastructure, connectivity, education, skilled labour force and digitisation,” says Qalara CEO, Aditi Pany.
“This will have a very strong impact on the manufacturing and supply chain ecosystem of India.”
Back in 2022, Australia signed an economic cooperation and trade agreement with India, which means (gift and homewares) businesses can export and import product without paying any duties.
So what other advantages of current day India could be meaningful to Australian companies that are looking to source from India?
1 Because of the labour intensive nature of production, India can offer customised products with relatively lower MOQs, especially in gift and homewares, whether they are brands or retailers that want to launch exclusive lines or want to launch lines they want to test or trial before they place larger orders―buy less, waste less, says Pany.
2 The abundant labour force, which continues to grow, means wage rates remain relatively low compared to other manufacturing countries and of course cost of living is also lower, adds Pany.
“We still have a skilled labour force in smaller towns and regions, not all have migrated to urban areas, so there is the ability to maintain a lower cost of production.”
3 Culturally India is more flexible in its service offering ie in terms of digital content, supply chain, packaging, etc. “This allows us to work with all kinds of buyers that have different needs.”
For the gift and homewares industry, India is particularly appealing because of its manufacturing of high quality products, says Pany, such as knotted and handmade rugs; natural stone and marbleware; solid wood; textiles; surface embellishments; metalware; fragrances and incense; jewellery and recycled materials.
However, sourcing from India still comes with its challenges, which is where Qalara, a B2B global sourcing platform for responsibly produced products, comes in.
“Things can get lost in translation. While manufacturers are getting better in their ability to communicate and understand, there still is a way to go. This is where we can help.
“We are able to service a wide spectrum of businesses, with order ranging from 25 units to 50,000 units. We offer diverse models of supply chain fulfillment. We are a one stop shop starting from design and development to negotiating the right price for products.
“We manage end to end shipping including coordination, logistics, payments, etc. Qalara aims to make it more efficient and reliable to source from India while simultaneously supporting India’s ecosystem of artisanal and ecofriendly production,” adds Pany.
Want to know more? Check out the recorded version of Qalara’s webinar.