Export Opportunities for U.S. Businesses
KEY TRADE INDICATORS
2nd Most Populous
Country in the
Economy in the
18th Largest Export
Market for U.S.
in U.S. Goods
ECONOMIC AND BUSINESS ENVIRONMENT
India’s sizeable and rapidly growing domestic market, growing financial markets, large English-speaking population, and stable democratic government make it an attractive destination for U.S. business. In 2013. U.S. companies exported $21.9 billion worth of goods to India, dominated by civil aircraft and spare parts, machinery and electrical machinery which accounts for approximately 30 percent of the total trade. India’s ongoing urbanization, together with rising incomes, has resulted in a heightened need for improved infrastructure, both to deliver public services and to sustain economic growth. U.S. companies, particularly small and medium-sized enterprises, should consider approaching India’s markets on a local/regional level. Options include using a subsidiary, a joint venture with an Indian partner, or using a liaison, distributor, project, or branch office.
TOP INDUSTRY EXPORT OPPORTUNITIES
Environment and Water
It is estimated that 30-40 percent of India’s industrial units produce sizeable quantities of pollutants. There are about 3 million small-scale enterprises in the country and most of these are not using any pollution control equipment. Local production of pollution control equipment is limited to mainly standard, relatively low-tech equipment. Over thirty percent of import equipment comes from the United States. Water and wastewater is the most promising sub-sector in India’s environmental segment in the non-energy category.
Healthcare and Medical Equipment
A growing old age population above 100 million, with rising incidence of lifestyle diseases, combined with rising incomes and affordability and increased penetration of health insurance are fuelling growth of the industry. The Indian healthcare industry will grow to $158 billion by 2017 from $78 billion in 2012. The most promising sub-sectors in the healthcare and medical equipment sector are; medical infrastructure, medical and surgical Instruments, medical imaging, electro medical equipment, orthopedic and prosthetic appliances, cancer diagnostics, ophthalmic instruments and appliances and orthodontic equipment’s and dental implants.
The U.S. has been providing a number of various foods and snack items to India with a forecast of continued exports. Including vegetable oil, treenuts (mainly almonds), fruits (apples and table grapes), pulses (peas, lentils, and beans), and snack foods for a growing middle-class disposable income.
TRADE REGULATIONS & CUSTOMS INFORMATION
Imports are permitted in most cases without a license. There are some exceptions where items are prohibited or restricted (import permitted under license) or where imports are allowed only through a state-owned enterprise..
U.S. companies face tariff and non-tariff barriers that impede their exports. One such area of protection is in the agricultural sector where Indian tariffs remain high compared to international standards. For non-agricultural goods, however, India has made considerable progress in restructuring tariffs.
All goods imported into India are subject to duty. There are several factors that go into calculating customs duty, including: Basic Customs Duty (BCD), Additional Customs Duty (ACD), Special Additional Customs Duty (known as Special CVD), Customs Education Cess and Customs Handling Fee. Total Duty: Therefore, for most goods, total duty payable = BCD + ACD + Special CVD + Education Cess + Customs Handling Fee.
Import Licensing Requirements
The majority of import items fall within the scope of India’s EXIM Policy regulation of Open General License (OGL). This means that they are deemed to be freely importable without restrictions and without a license, except to the extent that they are regulated by the provisions of the Policy or any other law.
Download India's Country Commercial Guide for more Customs and Trade Regulation Information
IMPORTANT COUNTRY GOVERNMENT ENTITIES
LOCAL U.S. SUPPORT CONTACT
Download the complete Country Commercial Guide
Source: U.S. Commercial Service