Buying from Indian suppliers

Strong sectors for sourcing

• Automotive components and castings
• Engineering goods and machine parts
• Pharmaceuticals and active ingredients
• Specialty chemicals
• Textiles, apparel and home textiles
• Leather and footwear
• Electronics assembly, a growing area
• Processed food, spices, tea and coffee

Finding suppliers

• Export promotion councils for each sector
• Trade fairs in India and Indian pavilions at European fairs
• Industry associations and chambers in India
• Referrals from European companies already sourcing in India
• Sourcing agents, used carefully and with clear contracts

Qualifying suppliers

1. Visit the factory or appoint a trusted auditor
2. Check certifications (ISO 9001, IATF 16949 for automotive, GMP for pharma)
3. Run trial orders before scaling
4. Check financial health and ownership
5. Audit labour, safety and environmental practices

Due diligence

European buyers face growing obligations to check their supply chains for human rights and environmental risks. Build social and environmental audits into supplier qualification from the start.

Trade rules

• Indian exports to the EU will get lower or zero tariffs under the FTA once in force; many already enter at low duties.
• For steel, aluminium and other CBAM goods, you need emissions data from suppliers.
• Rules of origin decide whether products qualify for FTA preferences.

Building relationships

Indian suppliers value long-term relationships and clear forecasts. Regular visits, joint improvement programmes and fair payment terms build partnerships that last through disruptions.