Your eyes and hands in India · Est. 2019 · Replies within one working day

China plus one for engineering goods: is India the alternative?

China plus one for engineering goods means adding a second source outside China. India is a strong candidate for castings, forgings, pumps and machined parts, with limits.

· 3 min read · Creston & Co

China plus one for engineering goods means keeping China as a source but adding a second country, so one disruption does not stop your supply. India is one of the stronger choices for that second source, particularly for castings, forgings, machined parts, pumps and engines, but it is not a drop-in copy of Chinese capacity.

There is no single best country to source machinery. The best country depends on the product, volume and the skills you need.

What does China plus one mean in practice?

It is a risk strategy, not a break with China. A buyer qualifies a second supplier in another country, places a share of volume there, and keeps the option to move more if tariffs, freight or politics change. The second source must be real, with approved parts and a track record, not a name on a list.

For engineering goods, that means a second source that can make the same drawing to the same quality. Allow time for sampling, first-article approval and a trial order before you rely on it. See first-article inspection for the steps.

Where is India a good second source?

India has deep industrial clusters in iron and steel castings, forgings, fasteners, brass and turned parts, pumps, engines and machine tools. Gujarat alone has several, covered in why Rajkot is an engineering hub and why source from Gujarat.

Indian suppliers work in English, are used to drawings and standards from the US and Europe, and often take small and medium lots. Many hold quality system certificates and have long experience with export orders.

Where are the limits?

Be honest about what India does not offer. Many Indian suppliers are smaller than their Chinese peers, so very large volumes may need several plants. Raw material supply chains, especially for electronics and some components, rely on imports. Lead times can be longer on first orders, and quality varies between plants.

Duties and trade rules also change. Tariffs between countries are revised often, so verify the current duty on your tariff code with your customs broker and treat any past figure as out of date.

How do you qualify an Indian second source?

Follow the same steps you would use with any supplier, in this order:

  • Shortlist several makers and check that they are real manufacturers. See trader or manufacturer.
  • Audit the factory for equipment, process control, testing and record keeping.
  • Order samples and measure them against your drawing, then approve a first article.
  • Place a trial order, supervise production and inspect before shipment.
  • Scale up gradually, and keep a scorecard so you can compare performance with your first source.

How does India compare with other options?

Turkey, Vietnam, Mexico and Eastern Europe are other second-source options, each with its strengths. Our comparison of Indian, Chinese and Turkish engineering suppliers lays out how to compare them on the same terms.

Next step

We find and audit Indian suppliers for buyers adding a second source, then manage samples, inspection and loading. To plan yours, book a free sourcing review.

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