/ By tjchinafreight ivy / Shipping

Shipping to India: 5 things to know

Shipping to India: 5 things to know
Shipping to India: 5 things to know

India is one of the largest maritime countries in the world, with more than 7,500 kilometers of coastline. The country's freight capacity has grown by more than 600 metric tons over the past few years and is expected to continue to grow in the years to come.

If you've been thinking about shipping to India, now is a good time to start. Still, you might be a little confused about how to ship your products to India and make sure everything is handled the right way.

If this happens to you, keep reading.

1. Preparation is key

It doesn't matter where you plan to ship the goods. If you want to make sure everything is intact and without any unnecessary obstacles, you need to make sure to prepare beforehand.

When preparing to ship your goods to India, you need to take some special steps, including the following:

  • Know where you're shipping your goods and make sure you have the correct details about your contacts at that location
  • Correctly spell the consignee's name when filling out shipping documents, and ensure that the consignee's address, phone number, and other contact information are correct
  • Make sure all your items are properly packaged
  • Make sure everything is listed on your invoice before you ship the goods out

A little preparation and planning goes a long way, especially when you're shipping items overseas.

2. Customs clearance

One of the most important shipping documents you need to complete is the customs documents associated with your shipment. Incorrect or incomplete customs documentation is a recipe for disaster, no matter how big or small your shipment is.

If you work with a professional shipping company, they will likely provide you with all the paperwork you need. However, be sure to check beforehand that you have filled out everything accurately. This will save you a lot of trouble later.

3. Prohibited and restricted items

Another way to avoid unnecessary and expensive shipping and prevent your shipments from being held up at customs is to make sure you have a thorough understanding of what items are prohibited and restricted.

Each country has its own rules on what can and cannot be brought into the country, and you need to know these before shipping anything.

4. Food Transportation Rules

You can ship food to India. However, you must take special measures when packing and preparing these items, including the following:

  • Food should be in original packaging
  • Packaging must be sealed
  • Labels must list all ingredients in the food
  • The shelf life of the food should be at least six months (from the date of shipment)

5. Costly mistakes to avoid

If you make certain mistakes during shipping, your company could end up losing a lot of money. Here are some of the most common (and costly) mistakes people make when shipping to India:

  • Spelling mistake
  • Incorrect address or contact information
  • Failure to complete necessary customs paperwork
  • Do not work with professional shipping companies

You might think it's in your best interest to avoid spending extra money working with a shipping company. If you've never shipped your goods overseas or to places like India before, it pays to have a professional (or team of professionals) at your corner. Like TJ chinafreight, they will give you the help you need to make sure everything goes smoothly.

Start shipping to India now

Shipping to India may seem daunting at first. However, the benefits definitely outweigh the costs, and it's not as difficult as you might think.

/ By tjchinafreight ivy / Shipping

What are India’s main exports?

What are India's main exports?
What are India's main exports?

A country's exports are better understood when you can see the overall economy's exports. In this article, we will examine the top five export products from India and the current market conditions for each export category.

As a member of the Brazil, Russia, India and China (BRIC) economies, India is emerging as a significant player in the global and national markets. It is currently the 17th largest exporting economy in the world. This status gives India the foothold it needs to remain competitive in international trade.

India's exports have seen impressive growth over the past five years - an annual rate of 1.2% - which created a negative trade balance of $125B in 2017. According to the OEC, India's Gross Domestic Product (GDP) is $2,6T while GDP per capita in 2017 was $7,06K.

What does India export?

India's main exports (currency shown in US dollars) include:

  • Refined Petroleum ($30.2B)
  • Diamond ($26.5B)
  • Packaged Drugs ($13.2B)
  • Jewelry {$8.66B)
  • Rice ($7.05B)

As you can see, refined oil accounts for a large portion of India's main exports. In fact, it accounted for 10.3% of the country's total exports, closely followed by diamonds at 9.1%.

Some thoughts and reflections on India's main exports

Many initiatives are aimed at increasing India's major exports and major imports. Government efforts, planning and strategies have largely contributed directly to overall growth, and the world has taken note of India as a true economic powerhouse.

Government benefits include export programs, financial assistance and other state-mandated benefits provided by the Indian government to its economy. So far, everything is heading in the right direction, including increasing exports for the foreseeable future.

Although India is one of the largest economies in the world, it is interesting that the government has created an economic platform that encourages progress in India. Away from the country's developing external environment, India is using its unique market position to compete in a rapidly globalized network of global exporters.

All in all, India also has a robust economic approach to responding to unexpected external forces. Its main exports are viable, limited natural resources, or they align with current demand for retail products around the world. In short, India's efforts to actively manage its imports and exports are paying off, making it a smart choice for international business.

/ By tjchinafreight ivy / Shipping

Importing from India: Shipping Tips

Importing from India: Shipping Tips
Importing from India: Shipping Tips

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.

/ By tjchinafreight ivy / International

Sri Lanka in deepest economic crisis in decades

According to foreign media reports, Sri Lankan President Gotabaya Rajapaksa declared a state of emergency in the country on April 1. Sri Lanka is mired in its worst economic crisis in decades, facing severe shortages of foreign currency and fuel and other necessities.
Sri Lanka, a country of 22 million people, is dealing with a severe foreign exchange crisis that has devalued the country's currency and affected the supply of basic commodities such as food, medicine and fuel. The government is struggling to secure foreign exchange to pay for fuel and other vital imports.

What happened in Sri Lanka?

The island's foreign exchange reserves have hit rock bottom, with commercial banks unable to obtain dollars to finance imports of food, fuel and medicines. Sri Lanka was in the throes of a severe economic crisis when the Covid-19 pandemic hit, reducing remittances from foreign workers and denting the lucrative tourism industry - the economy's main source of dollars.
In turn, Sri Lanka's debt management plan, which relied on access to these markets, was derailed, and foreign exchange reserves plummeted by nearly 70% in two years.

What happened to Sri Lanka's foreign debt?

The country had only $2.31 billion in reserves left as of February, but faces about $4 billion in debt repayments in 2022, including a $1 billion international sovereign bond (ISB) due in July.
The ISB accounts for the largest share of Sri Lanka's external debt at $12.55 billion, with the Asian Development Bank, Japan and China being the other major lenders.
In an assessment of the country's economy published last month, the IMF said public debt had risen to "unsustainable levels" and foreign reserves were insufficient to cover near-term debt.
Citi Research said in a report late last month that the conclusions of the IMF report and the government's recent measures were insufficient to restore debt sustainability, strongly suggesting "the need for debt restructuring."

Laugfs Gas LGGL.CM, which ordered cooking gas, was unable to get $4.9 million in payments from local banks due to a severe shortage of foreign exchange, and a vessel carrying 5,500 metric tons of gas had to leave Sri Lankan waters.

The Sri Lankan government said it was seeking a bailout from the International Monetary Fund and loans from India and China. Indian traders have loaded 40,000 tonnes of rice, the first large-scale food aid from India since Colombo received a line of credit from New Delhi.

After offering CBSL a $1.5 billion swap and a $1.3 billion syndicated loan, China is considering a $1.5 billion credit line and up to $1 billion in separate loans to the island nation.