India has millions of businesses, thousands of exporters, and a significant number of brokers masquerading as manufacturers. Knowing how to verify a supplier before you wire a single dollar is the most important skill in India sourcing. Here’s the definitive checklist.
Step 1: Verify the IEC (Import Export Code)
Every legitimate Indian exporter must have an IEC (Import Export Code) issued by the Directorate General of Foreign Trade (DGFT). You can verify any IEC number at dgft.gov.in. If a supplier can’t provide their IEC, that is an immediate red flag.
Step 2: Cross-Check the GST Number
India’s GST portal (gst.gov.in) allows you to verify any GSTIN. This confirms the business is registered, their legal name, address, and filing status. A supplier without a valid GSTIN is either unregistered (problematic for invoicing) or providing false information.
Step 3: Request Export Documentation History
Ask for copies of previous shipping bills (export declarations filed with Indian Customs) for similar products to similar destinations. A genuine exporter can easily provide anonymized versions. This proves actual export activity, not just claimed capability.
Step 4: Third-Party Factory Audit
For orders above $10,000, commission a factory audit through SGS, Intertek, Bureau Veritas, or a reputable local firm. A standard social compliance + quality systems audit runs $400–700 and takes 1–2 days. The audit report tells you about workforce, machinery, production capacity, and compliance systems — far more than any supplier brochure.
Step 5: Trade References and Video Call
Ask for two international trade references and actually call them. Schedule a video call with the supplier — walk through their facility if they’re willing. Legitimate manufacturers are proud of their operations and will welcome the transparency. Reluctance to show their facility on camera is a serious warning sign.
