Buyer guide
How to Verify Indian Suppliers
Supplier verification is the cheapest insurance in sourcing. A short due-diligence process before the first payment prevents the most common and most expensive failures. Here is what to check and why each item matters.
Confirm the legal entity and export credentials
Establish the registered company name and match it to the entity you will pay. In India, confirm the Import Export Code (IEC) — mandatory for exporters — and the GST registration. A supplier who cannot produce these is not set up to export in their own right.
Match banking to the legal entity
The bank account you remit to should belong to the verified legal entity, not to an individual or an unrelated company. Mismatches here are the classic signature of a diversion or fraud, and are worth pausing an order over.
Check prior export history
Evidence of shipments to markets similar to yours shows the supplier understands your documentation, labelling and quality expectations. A factory that has only ever sold domestically will learn on your order, at your cost.
Audit capacity and systems on site
A factory audit verifies machinery, realistic capacity against your volume, quality-control systems, and social and environmental conditions. It also exposes undisclosed subcontracting — where your order is quietly passed to a unit you never approved.
Frequently asked questions
What is an IEC and why does it matter?
The Import Export Code is a registration required to export from India. A legitimate exporter will have one; its absence suggests the goods will ship through a third party.
Can I verify an Indian supplier without visiting?
Yes — entity, IEC, GST, banking and references can be checked remotely, and a local partner or third-party agency can conduct the on-site audit on your behalf.
What are the biggest red flags?
Banking that does not match the legal entity, refusal of factory visits, no export history, and quotations far below the cluster norm are the most reliable warning signs.
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