India - Selling and buying
Reaching the consumers
Indian consumers are buying trademarks they recognize. In this sense, it is necessary to invest in advertising and marketing to promote its product. Indians are now far more brand conscious, and this is generating demand for some products that were previously unfamiliar.
Most Indian manufacturers use the traditional three-tier selling and distribution structure: redistribution stockists, wholesalers and retailers. However, with the advent of shopping malls in the retail sector, manufacturers are now ready to supply directly to large retail outlets at discounted prices.
India still does not allow foreign direct investment in retailing, so foreign companies need to partner with local companies to enter the market. For more information on FDI & Retail sector, visit the site: Ministry of Commerce.
Market access procedures
The country has signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).
India signed in March 2011 a Tariff-Cutting Trade Treaty with Japan that will eliminate or reduce about 94% of tariffs on the countries’ bilateral trade over a ten-year period.
- Anti-dumping and countervailing measures: Such measures are imposed from time-to-time to protect the domestic manufacturers from dumping.
- Export subsidies and domestic support: Several export subsidies and other domestic support is provided to several industries to make them competitive internationally.
- Procurement: The Indian government allows a price preference for local suppliers in government contracts and generally discriminates against foreign suppliers.
- Service barriers: There are still some restrictions for foreign companies to enter some service-oriented sectors like insurance, banking, securities, motion pictures, accounting, construction, architecture and engineering, retailing, legal services, express delivery services and telecommunication.
- Other barriers: Equity restrictions and other trade-related investment measures are in place to give an unfair advantage to domestic companies.
For the most current information on India’s Prohibited Import List, please see: www.exim.indiamart.com/freedlist/prohibited.html
Though this is relatively high, but as per the WTO commitments India is going to slowly reduce it.
The Central Board of Excise & Customs- CBEC is the apex body for customs matters.
In case of non-EDI more documents are also generally required.
Green Channel facility : Some major importers have been given the green channel clearance facility. They have to make a declaration in the declaration form at the time of filing of Bill of Entry. The appraisement is done as per normal procedure except that there would be no physical examination of the goods.
For details, visit the website: Central Board of Excise & Customs- CBEC.
Organizing goods transport
India's new international status as IT and manufacturing hub has led to the growth of international air traffic. India has one of the largest road networks in the world, the National Highways (NHs), with a total length of 66 590 km, serve as the arterial network of the country, connecting the State capitals, ports and big cities. In terms of railway, India plans to include 25,000 km of new lines, 12,000 km of double tracks and 30,000 km of multiple tracks. Additionally, 14,000 km of lines will be electrified.
Domestic business directories
- Society of Indian Automobile Manufactures (SIAM)
- Indian Drug Manufacturers Association (IDMA)
- Manufacturers Association of Information Technology (MAIT)
- The Clothing Manufacturers' Association Of India (CMAI)
- Indian Machine Tool Manufacturers' Association (IMTMA)
- All India Electric Motor Manufacturers Association (AIEMMA)
- The Fertilizer Association of India (FAI)