The Import and Export Landscape in India
By: Dezan Shira & Associates
Editor: Siddhartha Thyagarajan
India’s import-export landscape has remained stable in recent years despite major changes in the domestic and international economies. In recent years, India’s main import and export commodities have mostly not changed, while its largest trading partners have also remained the same. This stable import-export structure bodes well for businesses that trade with India, as well as those that would like to expand their operations to the country.
India has been one of the largest importers of crude petroleum in the 2015 Financial Year (FY). In the same year, India has also been one of the largest exporters of petroleum products. These statistics demonstrate a stable level of trade for the oil industry in India. India enjoys a similar trade dynamic with gold, precious and semi-precious stones – the jewelry sector continues to play a leading role in the global trade. Encouragingly, however, India’s import-export landscape is evolving.
The emergence of high levels of telecom instrument imports show that consumer spending on these electronics continue to grow. Foreign investors that would like to invest in this industry will find high levels of demand, an expanding market and government support. Meanwhile, the high levels of pharmaceutical exports show the emergence of an important industry for the Indian economy. This industry is still growing in the country, but it will only become more competitive as it adopts best in industry practices.
The stability of India’s import-export landscape is encouraging for foreign businesses considering investing in the country. However, investors should plan to monitor the evolving nature of imports and exports in India to understand the direction of India’s economic development.
This article is an excerpt from the October issue of India Briefing Magazine titled “Importing and Exporting in India“. In this issue of India Briefing Magazine, we examine India’s import and export landscape, basic import and export procedures, as well as the customs duties.
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