A baby's skin is delicate and sensitive. It needs to be taken care. This is the reason why traditionally newborns are always made to wear used clothes. As used clothes are washed multiple times they tend to be softer on baby's skin. New clothes can sometimes be stiff and harsh on baby's skin. However, now a days, we don't get used baby clothes so easily so my tip is buy new infant clothes, wash them multiple times and then use on your baby.
Make sure you choose 100% cotton clothes for you baby. India being a tropical country cotton suits best to all of us and it is organic. If you don't find pure cotton clothes then go for Cotton/Polyester Blends. The material used in vest is also good on baby skin and is blend of Cotton and Spandex which gives comfort of cotton and elasticity of spandex. In winters, you can choose sweaters having fleece, baby wool or acrylic material. I would advise to invest in one or two pieces of winter wear as our winters are not that harsh and your baby will grow in size by the time next winter arrives.
Sometimes festive clothes which we get in market are very glittery and have heavy seams. Especially frocks for girls look super cute with all the laces and stone work but they might be uncomfortable for the child. One day my mom was traveling by bus and a baby was crying too much and the parents were not able to calm the baby. The frock that the baby was wearing was having lot of stone work, unfinished hems and laces and my mom asked to change baby into something comfortable. The moment the baby wore pajamas she stopped crying. So avoid all these clothes and even during festivities try to buy some comfortable festive clothes.
The elastic which is used while designing clothes for Indian baby market is of very low quality. When you buy socks or pajamas or trousers make sure that the elastic is not too tight for you child's skin. Try to avoid tight clothes for the baby which will hamper his movements. Also, the accessories used while designing frocks should not cause choking hazards for the kid. So to sum up all the above thoughts.
1)Choose the right kind of fabric for you child
2)Avoid unfinished hems/ seams
3)The clothes should not be too tight
4)The accessories used while designing clothes should not cause choking hazards.