Strategic Sourcing from India, the high growth economy that should be in your Global Strategic Sourcing plan

With a population of over 1.2 billion, India is the World’s largest democracy, the second most populated country on the planet. It now boosts the World’s 5th Largest Economy WEF

Over the past decade, India’s integration into the Global Economy has been accompanied by similar levels of economic growth. Leading India to emerge as a Global Economic player and a country capable of playing a significant role in any product Sourcing Strategy.

“We believe India is set to surpass Japan and Germany to become the world’s third-largest economy by 2027 and will have the third-largest stock market by the end of this decade,” says Ridham Desai, Morgan Stanley’s Chief Equity

Building on their unique set of competitive advantages provided by:

1. Skilled workforce
2. Lower cost of labour
3. Cultural alignment and compatibility
4. Favourable regulatory environment
5. Improving infrastructure
6. Near-shoring and Re-shoring initiatives to move away from China benefitting India

The Regulatory environment has fuelled the delivery of six mega trends

1.Supply chain diversification

Fuelled by the global turmoil and moves by many companies to find alternative or additional sourcing partners to supplement China. India has benefitted from many companies in USA and Japan relocating supply chain partners to build future shock resilience.

2. Key Export Market for India

Industrial components

Textiles

Electronics and EV technology

Manufacturing competitiveness in India has benefitted hugely from skilled work force and lower labour costs allowing highly competitive pricing position v other markets. India steel manufacturing also fuels the competitiveness of the manufacturing sector. The textiles & Apparel markets in addition to the cost and quality of labour India has easy access to high quality raw materials.

EV manufacturing and innovation and India’s ambition to be a Global Hub for EV industry and Technology. India will launch 40 models of EV car models from a range of Car brands. Support for the industry has been further supported by the recently announced the opening of the worlds largest EV hub supporting the manufacture of both vehicles and advanced cells.

3.Government initiatives

The Indian Government continues to strive to create the rights conditions for Export business to flourish. Foreign and domestic investment in manufacturing has increased supporting further output growth.

4.Capex

As many factories reach high levels of utilisation, benefitting from the strong growth in the Indian economy. Investment levels are rising rapidly both from Government and Private enterprise.

5.M&A

Manufacturing companies are using M&A as a way of building scale and adding capabilities to their portfolios and export capability. Deals were $108b in India in 2021 of which 16% were in the Manufacturing sector.

6.PE/VC funding

In the last few year significant investment has flown in India industrial and export sectors. Fuelling growth in the start up Eco System and building transformative growth. The Manufacturing sector benefitted from over 16% of this investment.

Summary Indian Export growth

Indian continues to build its position as a global export powerhouse. Strong infrastructure in pace, continued investment and Government commitment to creating to export growth helps to make India an easy country to do business in.

It has the second largest railway network in the world and a vast coastline with established seaports.

Strategically located nearly 10,000 KM closer to Europe and the USA.

For companies wrestling with the need to evolve their Sourcing Strategies. Starting to look at Off Shoring options or as part of a wider China +1 strategy India should be top of your list of countries to investigate.

Key export areas of

Industrial Components.

Textiles

Electronics particularly EV Technology

Can provide exceptionally high value and innovative products whilst retaining a lower-cost base.

ET2C Is a global sourcing company with over twenty years’ experience working with our clients to deliver their Sourcing Strategies. Our offices in seven countries ensure you always have a team on the ground to be your bridge to your Offshore suppliers. Giving you independent feet on the ground and confidence with fast responses, removing time zone and language challenges.

If you would like to explore sourcing opportunities within India or to discuss your future supply chain challenges.

Please contact us at contact@et2cint.com

Continuous Improvement with ISO 9001:2008 

The ISO 9001:2008 quality management standard was developed and published by the International Organization for Standardization (ISO) and establishes an effective quality management program for our company. Important components of ISO 9001:2008 include customer satisfaction and establishing processes for continuous improvement, items that ET2C International Inc. values highly. ET2C International Inc.’s performance over the past 14 years has established that we consistently source and procure quality products, and this latest accomplishment verifies that the entire organization is finely tuned to serve you into the future.

In a comment on this award, ET2C International CEO Richard Archer-Perkins said “I am honored and thrilled to receive this award from Supply & Demand Chain Executive. Year on year we commit our best work for all of our treasured clients and we are always here in China, India and Vietnam whenever you need us. I would like to personally thank each and every one you for helping us create ET2C into the company it is today. I look forward to adding more value to your company’s sourcing and procurement operations in South-East Asia.”

ET2C International greatly appreciates this award as it coincides with our company’s 14th year anniversary. On looking back on the past decade and a half, we fondly remember all of the clients that have helped us build our company. With this honor, we look forward to continuous improvement while we work towards greater expansion in Asia in order to find the most qualified suppliers for your sourcing and procurement needs.

About Supply & Demand Chain Executive

Supply & Demand Chain Executive is the executive’s user manual for successful supply and demand chain transformation, utilizing hard-hitting analysis, viewpoints and unbiased case studies to steer executives and supply management professionals through the complicated, yet critical, world of supply and demand chain enablement to gain competitive advantage. On the Web: www.SDCExec.com.