Key takeaways
- India suits many China+1 categories, but supplier checks are essential.
- Use paid samples, pilot orders and secure payment terms before volume.
- UK, Australia, NZ and EFTA trade deals are in force; EU and US deals are pending.
1. Finding suppliers
- Export promotion councils and industry associations for your product category.
- Trade fairs in India and buyer-seller meets organised by trade bodies and chambers.
- Industrial clusters: for example Gujarat for chemicals, engineering, ceramics and textiles; Rajkot and Jamnagar for engineering and brass parts; Tamil Nadu and Maharashtra for auto components.
- Your existing suppliers’ Indian partners and your own country’s trade-promotion office in India.
2. Checking them
- Legal status, GST, import-export code and filed accounts — verify an Indian company.
- Factory visit and capacity check — supplier verification.
- Labour compliance and supply-chain evidence for EU and UK rules — EU & German DD.
- Full contract-manufacturing checklist: here.
3. Samples, contracts and payment
- Paid samples and a pilot order before volume.
- Specifications, inspection rights, IP and tooling ownership in the contract.
- Payment: letters of credit, or staged payments against inspection, until trust is built.
- Indian exporters zero-rate GST on exports and may claim export incentives — clean invoicing matters to both sides.
4. Trade deals in 2026
| Market | Status (October 2026) |
|---|---|
| United Kingdom | CETA in force since 15 July 2026 |
| Australia | ECTA in force since 29 December 2022 |
| New Zealand | FTA in force since 20 October 2026 |
| Switzerland, Norway, Iceland, Liechtenstein | EFTA TEPA in force since 1 October 2025 |
| European Union | Concluded January 2026; signature targeted for December 2026 |
| United States | First tranche reported finalised in October 2026; not yet signed |
Rules of origin decide whether your goods get the lower tariff — ask suppliers for origin documentation early.
Sources
- MFAT — India–New Zealand FTA
- SteelOrbis — India–EU FTA timeline
- The Tribune — India–US trade agreement first phase
Frequently asked questions
Is India a good China+1 sourcing option?
For many categories — textiles, engineering goods, chemicals, pharma, electronics and auto parts — yes, but buyers should verify suppliers carefully, budget for longer onboarding and use trade agreements where they apply.
How do I verify an Indian supplier?
Check its MCA status, GST and import-export registrations and filed accounts, visit the factory to confirm capacity and quality systems, and confirm the bank account matches the legal entity before paying.
Which countries have trade agreements with India in 2026?
Among others, the UK (CETA, since July 2026), Australia (ECTA, since 2022), New Zealand (since 20 October 2026) and the EFTA states (since October 2025). The EU agreement was concluded in January 2026 and awaits signature.
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.