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Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy

Manufacturing Sourcing Company in India — The Ultimate Guide of 2024

Key takeaways

  • Sourcing companies support searching for quality suppliers, meeting their demands and objectives.
  • Additionally, these companies prefer India for its exemplary workforce, modern infrastructure, and transactional ease. 
  • Consequently, the country offers a modern approach to establishing technological advancements in improving the supply chain.

India’s manufacturing industry is gaining popularity in the world and is set to grow much bigger in the future. However, why do companies source in India?

In this article, we will talk about what a manufacturing sourcing company is. We will discuss why companies are starting to source in India. We will also show you some sourcing companies that you can trust. 

After reading this article, you will gain enough knowledge about some of the companies you can source materials and services with when looking for a sourcing company in India. So without further ado, let us now start.

Manufacturing Sourcing Company– what is it?

We all know that sourcing companies help a business find sources for products at a low price and of a certain quality. In the manufacturing industry, the concept of sourcing is to find suppliers that will help you meet your objectives and goals in terms of cost, quality, and deadlines. 

The rapid growth in production needs has made manufacturing sourcing companies crucial for every business, especially multinational companies. Finding the right supplier at the right time is a key strategic issue. Thus, why do many companies hire firms or agents to source for them? 

Sourcing firms or agents work to get clients the best prices possible for whatever product they need while assuring its quality. These entities ensure that manufacturing companies or suppliers can produce and deliver the product on time. 

Usually, professionals in the sole sourcing industry have knowledge of different languages as it is essential to build relationships with their suppliers. 

As we have discussed, manufacturing sourcing companies’ purpose is to find the right supplier for their clients. Thus, a manufacturing sourcing company or agent must get a quote that includes:

  • Price
  • The cost of the sample products or materials
  • Lead time
  • Minimum quantity of orders

You should take note that a proper manufacturing sourcing company should share information about the suppliers they find for you rather than acting as a middleman. A sourcing company or agent that refuses to disclose the supplier’s information is not a sourcing professional at all but a trader.

Why Should You Sourcein India?

India is known as the destination for product development and sourcing. Many companies worldwide import a wide range of products due to the remarkable growth and transformation of the manufacturing industry. 

India boasts numerous advantages such as a huge pool of talented and skilled workers, improved infrastructure, and customer-friendly regulations. Additionally, India has one of the simplest and cheapest sourcing processes in Asia. 

Companies also source in India as it is the best option to look for low-cost products. It has low labor costs and a vast manufacturing base. Thus, it is becoming the most preferred outsourcing destination by numerous global manufacturing businesses. 

Competitiveness of the Manufacturing Sector of India

India has set a standard in the manufacturing sector which is why it is placed in the second rank in the world by the Global Manufacturing Competitiveness Index (GMCI). 

The manufacturing industry of India is committed to technology integration and innovation to increase competitiveness and increase its product value chain. This is the reason why many international manufacturing companies set up their production plants in India.

As the manufacturing industry of India continues to gain popularity and integrate new technology, the Indian government recognizes its role to support development and innovation to expand the manufacturing base in India. Therefore, it has provided various incentives to facilitate technology development. 

Example of Manufacturing Sourcing Companiesin India

Here are some examples of manufacturing sourcing companies that you should know about!

1. Sourcing India

Sourcing India can help you to source various products and services from India to other countries. The head office of the company is in New Delhi, India. 

Currently, it offers sourcing services to clients all over the world. These clients include France, Italy, the USA, Switzerland, Netherlands, Iran, Pakistan, Australia, Panama, and more. 

The range of products they source includes the following:

  • Medical disposable
  • Home Furnishing
  • Tea coffee
  • Agricultural hand tools
  • Sports items
  • Industrial suppliers
  • Rice and spices

2. Small World India

Small World India is an Indian sourcing agency aimed to help clients to provide high-quality goods to a wide range of businesses. It was established in 1993 and is based in Noida, India. 

Their main services include:

  • Bath and bedding
  • Kitchen, lighting, and outdoor
  • Rugs and carpets
  • Furniture
  • Gifts
  • Home accents
  • Clothing and accessories

3. Vega Sourcing

Vega Sourcing Company provides its clients with unmatched services through all phases of sourcing. They are equipped with in-depth knowledge and hands-on professional experience. 

Vega sourcing is involved in sourcing the following products:

  • Home decors
  • Home furnishings
  • Tabletop
  • Antique reproduction
  • Fashion accessories
  • Stationery products

4. VJ Sourcing

VJ Sourcing is a well-known company in India established in 2010. It specialized in textile and leather sourcing and production. 

VJ Sourcing is involved with 200 partners in South India. Their factories are also subject to regular inspections to provide transparency in the sourcing and production process. Its product scope includes:

  • Accessories
  • Leather
  • Clothing

5. Dragon Sourcing India

Dragon Sourcing India is an international company based in Shanghai, China which was founded in 2004. It has offices in various countries including Mumbai, India.

They are currently working with numerous international brands such as Danfoss, Volvo, and Wabco. 

Dragon Sourcing India provides the following services:

  • Source potential suppliers or manufacturers
  • Price negotiation
  • Process export orders
  • Communicate and coordinate all sourcing activities


Understanding the role of manufacturing sourcing companies, the advantages of sourcing in India, and examples of reliable sourcing companies in India is essential for businesses looking to optimize their supply chain.

India’s growing manufacturing competitiveness, coupled with the expertise of sourcing companies, provides opportunities for businesses globally to find quality suppliers and products. The highlighted examples showcase diverse services offered by reputable sourcing companies, emphasizing the significance of informed supplier selection.

Frequentlyasked questions

What are manufacturing sourcing companies?

Manufacturing sourcing companies are firms that look for suppliers that best suit their clients.

Why do many companies source in India?

Many companies source in India as the labor cost is cheaper in India compared to western nations.

What is the status of India’s growth in the manufacturing sector?

According to the Indian Brand Equity Foundation, the manufacturing sector of India has the potential to reach $1 trillion by 2025.

About the author

My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.

Marijn Overvest Procurement Tactics