As one of the most important emerging markets in the world, opportunities to do business with India abound.
Imported from India: Top products imported by global buyers
In 2017, the South Asian country exported $292 billion worth of goods, with chemicals, precious metals and textiles being its top three exports. These goods accounted for 14%, 13% and 13% of India's imports, respectively, and 40% of all imports.
Tips to help you import from India to the US
The potential to do business, grow and scale in India is certainly something American buyers are not only aware of, but also capitalizing on.
The United States is currently India's largest trading partner, with some $51.6 billion worth of Indian exports being sold to the United States across nearly half the world. This accounted for 16% of India's total exports, more than the combined value of goods exported to India's second and third largest trading partners, the United Arab Emirates (9%) and China (5.1%), respectively.
Among India's imports to the US, chemicals, precious metals and textiles accounted for more than half of the total value of India's imports to the US, respectively 20%, 19% and 16%.
As a shipper looking to import from India, here are five things to know.
1. Familiarize yourself with "interstate taxes"
The Indian government imposes so-called "interstate taxes" on goods shipped from one state to another (there are 29 states in India). So, if your cargo needs to be transported from the hinterland to the port, keep in mind that interstate taxes will apply.
Whether this will be borne by you or the shipper will depend on the Incoterm selected.
2. Review your suppliers
While unreliable suppliers from anywhere in the world are often encountered, India has a reputation for questionable business ethics. When choosing a supplier from India, it doesn't hurt to go the extra mile to vet them.
You can do this by calling them instead of dealing with them via email. You may also want to consider traveling there yourself if your business expenses allow it. Requesting product samples is also a great way to ensure you are dealing with a reliable supplier.
3. Take advantage of its low manufacturing costs
Due to the relatively low cost of manufacturing in India, you may want to consider sourcing more from India rather than other manufacturers or sellers closer to home.
Even accounting for shipping costs, the total cost of importing from India to the U.S. may still be lower than producing the product domestically.
4. Book your shipment in advance and ship it by rail if possible
Logistics in India can be a nightmare. This is thanks to traffic congestion in Mumbai, home to the country's largest port, Jawaharlal Nehru Port. It is not uncommon for trucks to fail to reach the port in time due to traffic jams.
As a workaround, you should always book shipments at least two weeks in advance. If ground transportation is required, consider choosing rail instead of truck to avoid road congestion.
5. Language is not a barrier
Shippers looking to import from India will be happy to know that although Hindi is the most widely spoken language in the country, English is generally considered the language in which business transactions are conducted in India.
This will help facilitate communication and avoid misunderstandings.
