How to Verify an Indian Supplier Before Sending Money

Every year, importers lose thousands of dollars to fraudulent or unreliable Indian suppliers. The most common scenario: a buyer finds a supplier online, likes the prices, transfers a deposit — and then either receives substandard goods, or hears nothing more. The supplier disappears.

This isn't unique to India, of course. But the combination of distance, language barriers, and an unfamiliar business environment makes verification absolutely critical.

Step 1: Request and Verify Documents

Start by asking for: GST registration certificate (confirms they're a registered business), PAN card (tax identification), export licence (if they claim to export), company registration documents, and bank account details (compare with the business name).

Don't just accept PDFs — verify them. You can check GST registration on the Indian government's GST portal. You can verify a company's registration on the MCA (Ministry of Corporate Affairs) website.

Step 2: Do a Physical Factory Visit

This is the single most important step. A desk address in a city doesn't mean a factory exists there. We've encountered 'manufacturers' who operate from a residential apartment with no production capability whatsoever.

During a factory visit, check: does the machinery match what they claim to produce? Is there an active workforce? Can they show you recent export shipments? Do they have raw material in stock?

Step 3: Request Past Client References

Ask for contact details of 2-3 existing export clients. Most legitimate manufacturers will happily provide this. Then actually contact those references and ask about quality, reliability, communication, and how issues were resolved.

Red Flags to Watch For

• Prices that seem too good to be true (they almost always are).

• Reluctance to allow a factory visit or provide a video walkthrough.

• Asking for full payment upfront before any production.

• Pressure to pay via personal bank transfer to a name that doesn't match the company.

• Stock photos instead of actual product images.

• No verifiable export history.

The Cost of NOT Verifying

A single bad shipment can cost tens of thousands of dollars — in wasted product, return shipping, lost sales, and damaged customer relationships. A supplier verification that costs a few hundred dollars is the best insurance you can buy.