As Amazon FBA sellers navigate an increasingly competitive global market in 2025, choosing the right sourcing destination is more critical than ever. For years, China has dominated global manufacturing, but India is fast emerging as a preferred alternative—especially for handcrafted items, home furnishings, leather goods, and fashion accessories.
At Panoramic Sourcing, we help global sellers, including Amazon FBA entrepreneurs, source ethically and affordably from India. With recent developments like the India–UK Free Trade Agreement (FTA), the dynamics are shifting even more in India’s favor.
Let’s explore how India vs. China sourcing for Amazon FBA compares in 2025, the impact of the India–UK FTA, and how Amazon sellers can make smart, cost-effective sourcing decisions.
India vs. China Sourcing: Key Differences for Amazon FBA in 2025
| Feature | India | China |
| Product Focus | Handmade, eco-friendly, small-batch goods | Mass production, electronics, plastics |
| Lead Times | Moderate | Fast (due to manufacturing scale) |
| MOQs (Minimum Order Qty) | Low to moderate | High |
| Labor Costs | Competitive | Rising |
| Cultural Customization | Strong in artisan crafts & designs | Limited customization |
| IP Protection | Improving | Often reported as a concern |
| Trade Transparency | Increasing | Stable |
India has become the go-to for niche, lifestyle, and sustainable products—ideal for Amazon private label brands. On the other hand, China remains strong for high-volume, technical, or electronic products.
Impact of India–UK Free Trade Agreement (FTA) on Sourcing
The India–UK FTA, signed and partially implemented in 2024 and expanding in 2025, has major implications for global trade, especially for Amazon sellers sourcing from India.
Tariffs Reduced or Eliminated for Indian Goods
- Zero import duties on many handicrafts, textiles, home décor, and leather goods from India to the UK.
- Up to 25% reduction in tariff rates across other key categories exported from India.
- Quicker customs clearance and reduced documentation for Indian exporters.
China Left Out
- Chinese exports to the UK continue to face higher tariffs, especially on textiles, leather accessories, and homeware.
- In many cases, India’s duty-free status under the FTA gives Indian products a 10–20% price advantage in the UK market.
How Amazon Sellers Benefit by Sourcing from India
If you’re selling on Amazon UK, sourcing from India post-FTA means:
- Higher profit margins due to reduced import costs.
- Competitive pricing compared to China-sourced goods.
- Easier brand positioning with handcrafted or sustainable products.
- Fewer IP concerns for custom or original designs.
At Panoramic Sourcing, we’ve already helped several Amazon sellers capitalize on the FTA, helping them source leather bags, block-printed cushions, and handmade jewelry at better landed costs than before.
How to Decide: Sourcing from India or China for Amazon FBA
Here’s how FBA sellers can evaluate which country is better:
Choose India If You Want:
- Handmade, unique, artisan, or eco-friendly products.
- Lower MOQs for market testing.
- Better pricing in UK & EU (post-FTA).
- Ethical sourcing practices and storytelling value.
Choose China If You Want:
- Mass production of gadgets, tools, or electronics.
- Faster turnaround at scale.
- Established supplier base for industrial goods.
What About Amazon USA?
Even though the India–UK FTA directly impacts UK imports, Amazon USA sellers can still benefit from India sourcing:
- Lower MOQs allow more flexible inventory control.
- India’s craftsmanship and unique aesthetic appeal to US customers, especially in boho, vintage, and handmade niches.
- Indian suppliers are becoming increasingly compliant with Amazon’s US product safety standards and certifications.
- Diversifying away from China reduces exposure to geopolitical and tariff-related risks in the US-China trade tensions.
Conclusion: Why India Is a Smart Sourcing Choice in 2025
With the India–UK FTA boosting tariff advantages, a growing skilled artisan base, and a strong track record for quality lifestyle products, India stands out as a top sourcing destination for Amazon FBA sellers in 2025.
Whether you’re a new seller exploring unique niches or an established private label brand looking for better margins, Panoramic Sourcing can help you unlock India’s sourcing potential with confidence.
Ready to Start Sourcing from India?
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Let’s grow your Amazon FBA business with ethical, affordable, and high-quality Indian products.