Key takeaways
- Vet legal status, accounts, factory capacity and certifications before the first order.
- Own your IP and tooling contractually; register marks and designs in India.
- Home-country supply-chain and carbon rules now reach Indian factories.
1. Vet the manufacturer
- Legal status, GST, import-export code and filed accounts — how to verify.
- Factory visit: capacity, machinery, quality systems, certifications claimed vs held.
- Labour and safety registrations; India’s Labour Codes have applied since November 2025.
- Export track record and existing foreign customers.
2. Protect IP and tooling
- Register trademarks and designs in India; NDAs before sharing drawings.
- Who owns moulds, dies and tooling you pay for — and can you remove them?
- Limit sub-contracting without your consent.
3. Quality and ESG
- Pre-shipment inspections; agreed specifications and defect remedies.
- Supply-chain rules at home: EU and German due-diligence laws and the EU Forced Labour Regulation — see EU & German DD.
- Steel and aluminium inputs: emissions data for EU CBAM.
4. Tax, customs and payments
- Exports from India are zero-rated for GST; the manufacturer may claim refunds and export incentives.
- If you supply materials or machinery on loan, check customs and permanent-establishment implications.
- Payment: staged payments against inspections, or letters of credit, until trust is built.
- Related-party manufacturing (your own Indian subsidiary) needs transfer pricing.
Want the manufacturer checked and visited for you? Supplier verification & site visits.
Sources
Frequently asked questions
How do I choose a contract manufacturer in India?
Verify its legal status and filed accounts, visit the factory to confirm capacity and quality systems, check labour and safety registrations, export history and certifications, and agree IP, tooling ownership and inspection rights before the first order.
How can I protect my IP when manufacturing in India?
Register trademarks and designs in India, sign NDAs before sharing drawings, own your tooling contractually, and restrict sub-contracting without consent.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.