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The April-July 2024 period saw a 7.30% surge in overall imports compared to last year, with key items including petroleum, electronics, machinery, and gold. While merchandise imports outpace exports, our services sector is thriving, with service exports reaching $117 billion against $63 billion in imports. #import #export #crossbordertrade #EximPe

Don't know where to export? Here's what you need to know. India’s exports grew by 8.60% between April and June 2024. With this rise in exporters, an aspiring exporter may wonder, where to export my product now? Answer is, Africa. ~ The African market is not a new destination for India, with trade going on for thousands of years. But with the technological advancements today, the scope is more than ever. ~ While India mainly exports petroleum to Africa, amounting to over 40% of total exports, India also exports medicines, cars, car parts, machines and various tech equipment to Africa, with trade going up from $56B from 2015-16 to $83B in 2023-24. This is not at all about only India. Increased trade between these countries can benefit both of them, for example: ➡ India’s export of affordable medicine to Africa benefits the people there and, ➡ India will be able to balance out China’s growing influence in the region by strengthening its ties with Africa. This is important, more on that later. For the exporters, it is more beneficial, because: ➡ By selling its goods in Africa, it can reduce the dependency on other regions ➡ The exporters can learn how to operate in different markets as they work in Africa ➡ Factories and service industries will create more jobs as exports increase. With all these benefits, India’s role as a trading partner is likely to increase. ~ For exporters, check out the top 5 countries in Africa you should be exporting: Nigeria: As Africa’s largest economy and most populous country, Nigeria offers significant opportunities for Indian exporters. The country has a diverse economy with strong sectors such as oil and gas, agriculture, and telecommunications. ~ South Africa: Known as one of Africa’s most developed economies, South Africa has a well-established infrastructure and a diverse industrial base. ~ Kenya: Kenya is a regional hub in East Africa with a growing economy and strategic location for accessing neighboring markets. It has sectors in agriculture, construction, and technology that are expanding rapidly. ~ Egypt: As one of the largest economies in North Africa, Egypt has a significant strategic location linking Africa with the Middle East. Its key sectors include energy, textiles, and construction. ~ Ghana: Ghana has one of the most stable and rapidly growing economies in West Africa. It has a strong focus on sectors such as mining (particularly gold), agriculture, and energy. The country’s friendly business environment and strategic location make it a promising market for Indian products. #AfricaIndiaTrade #Export #Import #CrossBorderTrade #EximPe

Shipping containers come in various types to accommodate different cargo needs. From standard dry containers to specialized ones like refrigerated and flat racks, each type serves a unique purpose in global trade. Choosing the right container is crucial for ensuring the safe and efficient transportation of goods based on requirements. #ShippingContainer #import #export #crossbordertrade #EximPe

Shipping goods in a 20-foot container from China to the US costs $2,000 but $12000 from Air! Historically, sea freight was the dominant method of global shipping due to its cost-effectiveness for bulk volumes. However, the mid-20th century saw the rise of air freight, revolutionising logistics with its speed for time-sensitive shipments. The introduction of containerization in the 1950s further streamlined sea transport, enhancing its efficiency and reliability. Selecting the right shipping method is a crucial decision in the import/export business. It affects not just your costs but also your delivery times and overall customer satisfaction. Shipping Costs Shipping costs vary significantly between methods. For example, air freight is generally much more expensive than sea freight. Shipping a 20-foot container from China to the US costs about $2,000 via sea freight, whereas the same goods transported by air could run approximately $12,000. Transit Times Transit times are another critical factor. Air freight is known for its speed, typically delivering within 1-5 days. In contrast, sea freight takes longer, usually 20-30 days. Your choice will depend on how urgently you need the goods and your inventory management strategy. For instance, if you’re shipping perishable items, air freight might be the better option despite the higher cost. Capacity & Volume Sea freight is ideal for large volumes and bulky, non-perishable goods. With a container capacity of around 67 cubic metres, it accommodates substantial quantities at a lower cost per unit. On the other hand, air freight has weight restrictions and is more suitable for high-value or time-sensitive items where speed is essential. Making the Right Choice To select the optimal shipping method, consider the following: Cost vs. Speed: Determine if you prioritise cost savings, speed, or a balance of both. Product Characteristics: Factor in the size, weight, and perishability of your goods. Perishable items usually require faster delivery. Regulations and Infrastructure: Be aware of international regulations and local delivery infrastructure that might affect your shipping choice. Logistics Software: Utilise logistics platforms to compare costs, transit times, and track shipments in real time. Impact of Shipping Costs Shipping costs significantly impact the overall cost of a shipment. Depending on the method chosen, these costs can make up a substantial portion of the total expense. Choosing the right shipping method is a strategic decision that can profoundly affect your import/export business. By carefully evaluating your needs, product characteristics, and leveraging modern technology, you can optimise your logistics and stay competitive in the global market. #Logistics #SupplyChain #ImportExport #EximPe #CrossBorderTrade

Don't know where to export? Here's what you need to know African markets, particularly South Africa, Tanzania, Nigeria, Kenya, and Egypt, are becoming key destinations for Indian exports. Trade between India and Africa surged to over $83 billion in 2023-24, a 48% increase over the past decade, fueled by exports like medicines, cars, and tech services. Africa's young population and expanding economies offer significant opportunities for Indian exporters, helping to balance China's growing influence in the region, both economically and geopolitically. #import #export #crossbordertrade #EximPe

From Cold War alliances to emerging markets: India - Russia Trade Over the past five years, India and Russia saw an increase in trade, from $11 billion in 2018 to $38 billion in 2023, an increase of ~200%! India mainly exports pharmaceuticals, machinery, chemicals, textiles, and agricultural products to Russia, while importing primarily crude oil, natural gas, coal, defence equipment, fertilisers, and precious metals. India and Russia have a long history of relationship that started during the cold war and even exists today. Back in the 1950s and 1960s, the Soviet Union became a crucial ally for India by supporting it during the wars, helping to set the stage for this continued partnership. The Bhilai steel plant located in Chattisgarh, is India’s first and main producer of steel rails and other steel products, was jointly developed by India and Russia. Additionally, the 1971 Indo-Soviet Treaty of Peace, Friendship, and Cooperation laid a foundation for seamless trade between the two countries. These historical connections continue to shape India's approach to trade with Russia in the present day. As we move into the 21st century, both nations have found their relationship strengthened by shared strategic interests. With Russia looking to shift its focus away from European markets due to various sanctions, it has found a willing partner in India. ~ When it comes to energy, India depends a lot on imports of oil and gas, and Russia plays a key role as a supplier. Their cooperation in various energy sectors—such as oil, gas, and nuclear—reveals a strong economic partnership. A great example of this is the Kudankulam Nuclear Power Plant in Tamil Nadu, which was built through the collaboration of both countries. ~ A staggering 60% of India's defence imports are sourced from Russia, encompassing everything from aircraft and submarines to rifles. These deals not only equip our armed forces but also generate thousands of jobs and contribute significantly to the economy. ~ India and Russia have been collaborating on joint research and development projects in various fields of basic sciences. Currently, there are about 150 such projects underway, covering areas like Mathematics and Computation, Physics and Astrophysics, Chemistry, Earth Sciences, Biological and Medical Sciences, Engineering Sciences, and information communication. India-Russia trade isn't just about numbers. The historical ties, geopolitical strategies, and vast economic potential together create an ever lasting partnership. Economically, there is substantial potential to increase trade, particularly in defence, energy, and technology sectors, though challenges such as trade imbalances and global market fluctuations need to be navigated. #IndiaRussiaTrade #ExportImport #Export #Import #EximPe #CrossBorder

Things you should know about FTA before starting your Import/Export journey! As India continues to strengthen its position in the global economy, the focus on Free Trade Agreements (FTAs) is becoming increasingly significant. What Are FTAs? Free Trade Agreements are agreements between two or more countries that reduce or eliminate trade barriers, such as tariffs and quotas. They are designed to promote economic cooperation, increase trade volumes, and stimulate economic growth by providing easier market access. India’s Strategic Approach India has been actively pursuing FTAs to bolster its economic ties with various countries and regions. Recent developments highlight India’s commitment to fostering international trade and investment. Key agreements and negotiations include: ➡ India-UAE Comprehensive Economic Partnership Agreement (CEPA): This landmark agreement, effective from May 2022, is expected to boost bilateral trade significantly by eliminating duties on 80% of goods and services traded between the two nations. ➡ India-Australia Economic Cooperation and Trade Agreement (ECTA): Signed in April 2022, this agreement aims to enhance economic cooperation and open up new markets for Indian businesses, focusing on sectors such as education, mining, and agriculture. ➡ India-European Union Trade Agreement: Ongoing negotiations with the EU aim to create a comprehensive FTA that addresses trade in goods, services, and investment, while also promoting sustainable development. ➡ Regional Comprehensive Economic Partnership (RCEP): Although India chose not to join the RCEP, its participation in negotiations and decision-making reflects its strategic approach to global trade dynamics. Benefits of FTAs for India ➡ Increased Market Access: FTAs open new markets for Indian goods and services, facilitating export growth. ➡ Attracting Foreign Investment: By offering greater market access and reduced barriers, FTAs make India a more attractive destination for foreign investors. ➡ Economic Growth: Reduced tariffs and enhanced trade relations can lead to job creation, innovation, and overall economic growth. ➡ Enhanced Global Standing: Active participation in FTAs strengthens India's position as a key player in global trade. Challenges Ahead While FTAs offer numerous opportunities, they also come with challenges such as ensuring fair competition, protecting domestic industries, and addressing trade imbalances. Looking Forward India’s proactive stance on FTAs reflects its broader strategy to integrate more deeply into the global economy. Conclusion FTAs are not just trade agreements; they are strategic tools for economic growth and international cooperation. As India continues to expand its network of FTAs, businesses, and investors must stay informed and adapt to the evolving landscape to harness the full potential of these agreements. #FreeTradeAgreement #EximPe #ExportImport #CrossBordertrade

Can Indian D2C brands dominate the global market? In recent years, Indian D2C brands like Boat and Mamaearth have become household names, not just within India but across the globe. Mamaearth has already established a presence in the US and UAE, while Boat is thriving in 12 international markets, including Southeast Asia and the Middle East. Together, these brands boast combined annual sales exceeding $600 million, reflecting their robust global appeal. $2 billion to $350 billion Ecommerce export! ~ For years, Indian D2C brands faced delays of two to three days from the time an international order was placed to when it was shipped. However, the government’s recent announcement of e-commerce export hubs is set to change that. ~ These hubs, expected to be operational by 2030, are designed to streamline exports and support India’s ambitious goal of boosting e-commerce exports to $350 billion from the current $2 billion. ~ With plans to establish 10-15 hubs across the country, these designated areas will offer state-of-the-art infrastructure and facilities tailored for cross-border e-commerce. As the D2C sector in India continues to expand, the 2024 Union Budget has introduced pivotal changes that are set to reshape the e-commerce export landscape, propelling these brands further onto the world stage. ➡ This year, the Export Promotion Capital Goods (EPCG) scheme will see a 12% increase in benefits, up to ₹5,000 crore. Companies can now access enhanced duty-free imports for capital goods and raw materials. ➡ A substantial ₹2,000 crore has been allocated to promote digital infrastructure and technology upgrades. This includes grants and subsidies covering up to 25% of costs for integrating advanced logistics solutions and AI tools. ➡ To streamline cross-border transactions, the budget introduces a new digital platform for regulatory approvals with an investment of ₹1,000 crore. This initiative is expected to cut down processing times for export documentation by 30%. ➡ New agreements with regions like the European Union and North America are set to reduce tariffs by an average of 4-6%. In another significant move, the tax deducted at source (TDS) for e-commerce operators will be reduced to 0.1% from the current 1%. This change is a vital measure to enhance liquidity. While the numbers may be speculative at this point, we cannot deny that from now on, these brands will continue to grow along with many others who will join them. While it’s too early to predict, this move will certainly boost India’s economic growth. #EcommerceExport #ExportImport #CrossBorder #EximPe

India's Exports to Europe Double in a Decade The latest data from the commerce ministry reveals that India's merchandise trade with European countries hit a decade-high in the fiscal year 2023-24. In Europe, Exports reached $98.9 billion in FY 2023-24. This is a slight increase from $98.3 billion in FY 2022-23. Notably, it's almost double the $50.4 billion recorded in FY 2015-16 In North America, Exports stood at $86.7 billion in FY 2023-24 This is the second-highest figure in a decade, just shy of the $87.9 billion in FY 2022-23 For comparison, exports were at a low of $45.2 billion in FY 2015-16 These two regions now account for about 25% of India's overall foreign trade in goods. It's a testament to India's growing economic partnerships and the increasing demand for Indian products in these markets. What's driving this growth? For Europe, the top export categories include: > Petroleum products > Telecom instruments > Iron and steel > Electric machinery and equipment > Drug formulations and biologicals North America shows a similar pattern, with the addition of: Pearls, precious and semi-precious stones Gold and other precious metal jewellery European export destinations include the Netherlands, the UK, Germany, Italy, and Belgium. North America, the United States, and Mexico are the primary markets. What does this mean for Indian businesses? This trend presents enormous opportunities for Indian companies looking to expand their global footprint. Whether you're in manufacturing, technology, or the pharmaceutical sector, there's clearly a growing appetite for Indian goods in these lucrative markets. However, it's not just about riding the wave. To capitalise on this trend, businesses need to: > Understand the specific demands of these markets > Invest in quality and innovation > Navigate the complex regulatory environments > Build strong international partnerships As we move forward, it will be interesting to see how India maintains and grows these trade relationships, especially in the face of global economic challenges and shifting geopolitical dynamics. #Export #ExportFromIndia #IndiaEuropeTrade #EximPe

India's 78-Year Transformation in Import/Export Business As India celebrates 78 years of independence in 2024, the nation reflects on a remarkable import/export business transformation. This anniversary marks freedom and highlights the journey from a protectionist economy to a global trade player. In those 78 years: > India went from facing challenges in a protectionist economy to becoming a global trade player. > In recent decades, foreign trade has grown significantly, with exports increasing from $36.3 billion in 1999 to around $776.68 billion in FY 2023-24. > India's ability to adjust its trade policies has built resilience and strength, making it an important player in the global market. History India’s independence in 1947 marked a significant turning point in its economic journey. At the time, the country faced a challenging economic landscape characterised by low export levels and limited industrial development. The government implemented protectionist policies, including high tariffs on imports and strict trade regulations, to shield domestic industries. Shift Towards Liberalisation The early 1990s marked an important shift in India’s economic strategy by introducing liberalisation policies. Facing economic stagnation, the government undertook comprehensive reforms to the economy. Key changes included reducing tariffs and deregulating trade, which allowed businesses greater flexibility. For instance, India’s textile exports surged, contributing around $45 billion in revenue in FY 2023-24. The Information Technology (IT) sector also flourished, with exports reaching approximately $194 billion in FY 2022-23. This shift laid the foundation for sustained growth and development in subsequent decades. Key Sectors Driving Growth > Textiles and Apparel: A major contributor to export growth, In FY 2023-24, textile exports reached approximately $45 billion. > Pharmaceuticals: India has emerged as a global leader in pharmaceuticals, particularly in generics and vaccines. Pharmaceutical exports were valued at around $24 billion in FY 2022-23. > IT Services: The IT sector has transformed India into a global hub for software services. With exports accounting for approximately $194 billion in FY 2022-23, major players like Tata Consultancy Services (TCS) and Infosys continue to drive innovation and expand their presence in international markets. India’s 78-year journey of transformation from struggle to strength in the import-export sector has been marked by significant growth, policy reforms, and resilience. As the nation continues to embrace reforms and leverage emerging opportunities, it is well-positioned to strengthen its role in global trade and face future challenges with confidence. Happy Independence Day to all! #IndependenceDay #ExportImport #CrossBorder #EximPe