There is no doubt that India is one of the fastest growing economies in the world. Although Global growth remains disappointing, India is standing as one of the fastest growing economies in the world. India continues to be a major global player in several industries.
The country is the world’s fifth-largest automaker, with expectations for third place by 2020. It is also the second largest telecommunications market with more than 1,408 million users, and that’s why Apple’s Foxconn Plans to open 10-12 factories and data center facilities throughout the country.
Why export to India
Besides the continuous economic growth, India is the second largest country in the world in terms of population. With a population estimated at 1.3 billion, India then constitutes the second largest consumers market in the world.
There are countless benefits of exporting to India. The Indian market is huge and active. Indians love American and European products because they believe that their locally manufactured products are low quality, thus, the demand on international brands is extremely high.
However, just like the Chinese market, exporting to the Indian market is a bit difficult and any exporter regardless of how experienced he/she is will definitely face some challenges. Below you will find more information about the benefits and the challenges of exporting to India.
Benefits of Exporting To India
If you are a foreign company seeking to do business in India, you will definitely find a lot of advantages including:
- Export Assistance: The best thing about exploring export opportunities in India is knowing that you do not need to do this on your own. If you are a source of interest in exporting to India for the first time, or are currently exporting to India but facing challenges, you can get help from allies within the country such as US commercial offices, trade missions, and chambers of commerce.
- Simple Export Documents: Unlike most countries, the procedure to get export documents in India such as Bill of lading, Commercial invoice, Packing list, Sales contract, Preformat invoice, AES filing, Customs declaration, and Insurance policy, is not difficult and it is simpler than in most countries.
- A fast-growing economy with one of the world’s largest youth populations
- Availability of low-cost skilled manpower
- A good network of banks, financial institutions, and a regulated capital market
Challenges of Exporting To India
Exporters, especially the new ones, should be careful as soon as they enter the Indian market. This competitive market is difficult and it takes a lot of planning and cleverness to establish a strong foot in it. Below you will find the common challenges that may face any exporter.
- Corruption: Unpredictable high tariffs may be imposed on exporters. These are neither cheap nor transparent.
- Extreme weather with very hot weather in summer and wet weather in the monsoon season can affect the business
These are the major advantages and disadvantages of exporting to India. Many experts consider China and India the future of the import/export trade. These two countries have the largest two consumption markets in the worlds and they represent great opportunities to earn money.