IMPORTING AND EXPORTING IN INDIA written by: sarahsandicks
Over the years, India has played a significant role in the global trade market. The country has long served as an entry to global markets due to its location on the map, and many importers and exporters trading with India continue to benefit from India’s geostrategic position.
Importers and exporters will find an unchanging trading environment in India, this is mainly because over the years the country’s import – export scene has remained stable despite significant changes in economic situations, both domestically and internationally. In recent years, significantly low operating costs and business friendly measures from the government have given the opportunity to importers and exporters trading with India to expand their interests domestically. In recent years, India’s key import and export commodities have mostly not changed, while its major trading partners have also remained the same. This steady import-export landscape will prove to be beneficial for businesses that trade with India, as well as those that would like to expand their operations to the country.
Over the past few years, crude oil imports for India have been rising steadily with its budding economy. During the 2015 financial year, India has been reported to be the third largest importer of crude petroleum (US$ 116.4 billion). In the same year, the country has also been one of the major exporters of petroleum products. These statistics clearly show a stable level of trade for the oil sector in India. The jewelry industry continues to play a dominant role in the global trade. The country shares a parallel trade dynamic with gold, pearl, precious and semi-precious stones. Jewelry remains one of India’s top exports and imports due to various economic and cultural factors. In the year 2015 alone, nearly US$ 57 billion of imported goods has been accounted for by this sector.
At present, India is one of the world’s largest mobile services market. The drastic increase in the import of telecom instruments in recent times demonstrate the consumer behavior, and the consumer spending on these electronics continue to rise. Foreign investors that are willing to invest in this sector will face high levels of demand, an expanding market and immense government support. Meanwhile, the pharmaceutical industry is still growing in the country and will become more competitive once the necessary precautions are adopted. The increasing level of pharmaceutical exports highlights the emergence of an important industry for the Indian economy. The constancy of India’s import-export landscape is encouraging for foreign businesses considering investing in the country. However, to clearly understand the direction of India’s economic development, investors should monitor the developing nature of imports and exports in India.
Overall, the country’s geostrategic position, low operating costs are complemented by steady government policies and well established trade flows. These factors have proven to be greatly beneficial for businesses that trade with the country. As India’s investment climate continues to develop and improve, exporters and importers that master the current trade conditions are well in position to gain profit in the coming years!