State by State: India and Ohio Trade
Imports and Exports
The total export values for Ohio in 2014 was US $52.24 billion, an increase of 2.6 percent from the previous year. The top exports were:
- Civilian aircraft engines and parts – US $4.3 billion
- Vehicle parts and engines – US $2.12 billion
- Soybeans and NESOI – US $1.7 billion
Leading destinations for exports included Canada, Mexico and China – India was Ohio 22nd largest market. Ohio’s exports from India in 2014 were valued at US $388 million, marking an increase from the previous year. India was Ohio’s eighth largest import partner with a value of US $1.3 billion in 2014, a 33 percent increase from the previous year
The Indian airline industry is expected to grow and become the third-largest aviation market by 2020, and the largest by 2030. Domestic and international passenger traffic from India is expected to increase at an annual average rate of 12 percent and 8 percent, respectively, over the next five years, which will continue to fuel demand for aircraft and aircraft parts. Domestic low-cost carrier SpiceJet is expected to place an order for 80 to 100 airplanes to expand their fleet, while IndiGo, another domestic carrier, has ordered 100 new planes.
However, these airlines have struggled to meet the demand for engines and other spare parts.The country’s national carrier Air India, for example, currently has a fleet of 21 Boeing 787 Dreamliners. However, one of the planes has been grounded so that the airline can strip the plane for spare parts because it can’t obtain parts for repairs at the rate required. Businesses in Ohio that produce aircraft parts are well-positioned to service India’s growing airline industry.
The Indian auto industry is one of the country’s largest, accounting for 7.1 percent of the country’s GDP. The auto industry has attracted foreign direct investment worth US$ 13.48 billion between April to June 2015, according to the Department of Industrial Policy and Promotion (DIPP). Several foreign auto companies have invested in India, including General Motors, Ford, BMW, DiamlerChrysler AG, Renault, Suzuki, Toyota, Honda and Hyundai.
The government wants to make India a global automobile hub. While India remains Asia’s fourth largest exporter of passenger cars, demand for manufacturing expertise and technology continues to grow, and auto companies in Ohio can service these requirements. India’s cheap yet skilled workforce make it an ideal location for automobile and part manufacturers to set up their factories. Most major manufacturing hubs are located around Chennai, Tamil Nadu state, which accounts for 60 percent of the country’s exports, followed by hubs around the national capital Delhi, Mumbai, Maharashtra state and several areas in Gujarat state.
Tax Treaty – U.S. Trade with India
The U.S. has signed a Double Tax Treaty with India. This can reduce tax burdens under certain circumstances in both trade and any legal establishment. Please seek professional advice for specific India investment requirements.
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