State by State: India and New York Trade
New York is known for its banking sector as well as its fashion, entertainment and jewelry industries. The Port of New York and New Jersey (located in New Jersey) is the third busiest port in the United States and the busiest on the East Coast, allowing for excellent import/export links with India and the rest of Asia.
Trade with India
In 2014, New York was the second-largest state exporter to India from the U.S. after California. Exports to India from New York were worth US$2.51 billion, an increase of 24.4 percent from 2013. Over the past decade, exports from New York have increased 242.6 percent. New York’s top exports are diamonds, gold, jewelry, paintings, civilian aircraft and cell phones, while its top imports are diamonds, gold, paintings, natural gas, petrol, wines and knit cotton goods.
Jewelry and Gems
New York City is known for being one of the primary locations for the import, export and sale of jewelry and gems – three of New York’s top exports are related to the jewelry industry. India, meanwhile, is one of the primary locations for diamond and gem mining. In 2009, the diamond gem industry was estimated to be worth a total of US$7.6 billion. India is also one of the largest consumer markets for gold and silver goods, with gold jewelry being very highly prized by many members of Indian society.
According to the Indian Brand Equity Foundation, the Indian jewelry and gem Industry is worth US$40.45 billion. FDI in jewelry and gems is worth near US$500 million, and is expected to grow further in the coming years.
India’s biotechnology industry has grown from US $530 million in 2003 to US $4.3 billion at the end of 2013. Many U.S.-based companies outsource clinical trials to India, while India remains strong in clinical data management, drug discovery and low-cost manufacturing. The Indian government has also implemented a number of initiatives to improve infrastructure for the industry as well as incentive schemes for foreign investors.
There was a 69.9 percent growth in agricultural imports from India in 2014. Both India and Illinois contain large agrarian sections of their economy. Investments in agriculture-based industries appear to be lucrative given India’s rapid population growth. However, Illinois-based companies that manufacture agriculture-related machinery and equipment stand to benefit the most from India’s agriculture sector, as well as the Make in India campaign that is designed encourage foreign investment into manufacturing in India.
New York is also a prominent producer of pharmaceuticals. With one of the world’s largest pharmaceuticals firms, Pfizer, headquartered in New York City, the state has become a leader in marketing, promotion and research of new drugs.
India has the world’s third largest pharmaceutical industry, which is estimated to grow 20 percent over the next five years. In 2013, the Indian Pharmaceutical industry exported US$10 billion worth of drugs. Furthermore, the Indian government recently allowed for 100 percent FDI in the pharmaceutical industry.
With its liberal FDI laws for pharmaceuticals, India is an ideal location for pharmaceutical investors from New York, including for drug research and manufacturing, both of which are considerably cheaper in India than in other Asian countries.
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 India legal establishment. Please seek professional advice for specific India investment requirements.
Further Support from Dezan Shira & Associates
Dezan Shira & Associates can service New York-based companies that are looking to develop their Asia operations. The firm can help companies establish a direct office in the region and can guide them through the affiliated tax, legal and HR issues that come with doing so. To arrange a free consultation, please contact our U.S. office at firstname.lastname@example.org.
For further New York-Asia trade data, please see our related article on trade with China.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email email@example.com or visit www.dezshira.com.
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