Top Mistakes to Avoid When Moving Manufacturing from China to India
In 2025, the shift from China to India is no longer just a trend — it’s a strategic imperative for companies looking to diversify supply chains, reduce geopolitical exposure, and capitalize on emerging manufacturing ecosystems. But while moving manufacturing from China to India offers enormous potential, it also presents a new set of challenges that businesses must navigate carefully.
This guide highlights the top mistakes companies make when relocating operations or sourcing from India for the first time — and how to avoid them using proven practices, real-world insights, and reliable on-the-ground partners like India 2 West (I2W).
Why Companies Are Moving Manufacturing from China to India
The motivations are clear and growing:
- Rising labor and operational costs in China
- Unpredictable U.S.–China tariffs and trade policy
- Desire for supply chain redundancy (China +1 strategy)
- Increased buyer demand for geopolitical stability and ESG transparency
India checks many of these boxes: it offers low-cost labor, a young and tech-savvy workforce, improving infrastructure, and government support through schemes like PLI (Production Linked Incentives) and Make in India.
But the transition isn’t plug-and-play.
Common Mistakes When Moving Manufacturing from China to India
1. Assuming “China Efficiency” Transfers Directly to India
China’s factories are highly integrated and digitally mature — many have in-house tooling, on-demand sourcing of components, and automated workflows. India’s manufacturing sector, while developing rapidly, is often more fragmented and relationship-driven.
Tip: Avoid assuming the same response time, scale, or documentation quality. Plan for longer onboarding, and adjust expectations around timelines and capacity ramp-up.
2. Not Having People on the Ground in India
One of the biggest pitfalls is trying to manage Indian suppliers remotely without local support. Unlike China, where processes are streamlined and tech-enabled, India’s systems can be opaque and vary factory to factory.
Tip: Work with a partner like I2W, who can conduct real-time audits, sample inspections, supplier onboarding, and production monitoring. This eliminates guesswork and builds relationships crucial for long-term success.
3. Choosing the Wrong Region or Supplier Type
India’s industrial ecosystem is regionalized — Pune excels in auto components, Tiruppur in textiles, and Noida in electronics. Many companies make the mistake of choosing a supplier based solely on price, rather than regional capability.
Tip: Match your product to the right manufacturing cluster. Use on-the-ground research or local experts to identify capacity, tooling capabilities, and sector-specific experience.
4. Expecting Chinese MOQ or Lead Time Standards
Factories in India often operate with smaller teams and less vertical integration than their Chinese counterparts. This can mean higher MOQs for custom parts, or longer lead times for tooling and prototyping.
Tip: Be upfront about lead times, sample expectations, and packaging needs. Build realistic buffers and negotiate flexibility based on batch size and scaling goals.
5. Skipping Factory Audits and Quality Checks
Trust-based sourcing without verification is risky — especially in a new region. Factory websites and catalogs often overpromise capabilities.
Tip: Always validate through third-party audits. I2W offers detailed quality and compliance reports, including photos, sample tracking, and product testing at key stages.
6. Overlooking Communication Gaps and Cultural Nuances
Indian suppliers are typically responsive but may avoid saying “no,” especially to foreign clients. This can lead to misalignment on specifications or delivery commitments.
Tip: Use clear written documentation, reinforce agreements over calls or WhatsApp, and build a communication rhythm. I2W bridges this cultural gap through bilingual project managers familiar with Western standards.
India’s Manufacturing Potential and the Need for On-the-Ground Support
India is not yet China in terms of capacity, but its advantages are compounding fast:
- Skilled workforce: Over 1.5M engineers graduate annually
- Policy support: Expanding FTAs and investor-friendly reforms
- Cost advantage: One of the lowest labor and tooling cost markets
However, without hands-on management and local knowledge, you risk delays, mismatches in expectations, or non-compliance. That’s why having boots on the ground is no longer optional — it’s a competitive necessity.
Why India Strengthens a China +1 Manufacturing Strategy
The China +1 strategy isn’t about abandoning China — it’s about reducing overexposure and ensuring supply chain resilience. Companies that once relied entirely on Chinese manufacturing are now looking to India to hedge against geopolitical risks and build redundancy into their operations.
Beyond cost savings, India offers a different risk profile. With increasing government stability, English-language fluency in business contexts, and improved port and logistics infrastructure, India allows companies to spread their sourcing across borders without compromising on quality or scalability.
India is the ideal complement:
- Different geopolitical sphere
- Strong trade ties with the U.S., EU, and Asia
- Lower cost base for many industrial categories
- Potential to scale up as infrastructure improves
Many companies now produce in China and India concurrently, using India for newer SKUs, pilot batches, or to serve non-China-facing markets. This dual-sourcing model not only reduces risk but also increases negotiating power across both supplier ecosystems.
How I2W Helps Smooth the Transition
Beyond general guidance, India 2 West (I2W) provides embedded, localized support to make sourcing from India reliable and scalable. With years of expertise navigating Indian supply chains, I2W helps foreign businesses sidestep the trial-and-error phase. Their services include:
- Supplier research and vetting
- Factory audits and capacity assessments
- Tooling development and sample follow-up
- Production QC and export handling
Backed by C2W Group, with 20 years of sourcing success across Asia, I2W brings structure, transparency, and speed to your India transition.
Final Thoughts on Moving Manufacturing from China to India
Moving manufacturing from China to India makes sense in 2025 — especially for companies seeking supply chain diversity, margin recovery, or ESG improvements. But success requires local insight, patience, and professional guidance.
Avoid common mistakes, embrace the differences, and partner with teams who understand both worlds — that’s how you build a resilient, profitable, long-term presence in India.