With India’s population having surpassed that of China, as it approaches one and a half billion people, Australian exporters are in prime position to capitalise on its enormous and growing potential.
As with all overseas markets, it is wise to engage the expertise of an experienced logistics services provider like Colless Young, to assist in navigating your way through customs, language barriers, currency exchange and quality standards.
You need to be confident you are getting the right freight rates and reliable shipping schedules, if you are to maintain the trust of your clients.
Colless Young offers direct FCL services, and weekly LCL services via Singapore, to the ports of Chennai, Cochin, Mumbai, and Kolkata.
Our airfreight services will get your cargo to all major cities and towns across India, economically and on time, including: Mumbai, New Delhi, Bangalore, Agra, Jaipur and Varanasi.
The Australia-India Economic Cooperation and Trade Agreement (ECTA) helps secure Australia’s foothold in this fast-growing economy and enables Australian businesses to benefit through tariff elimination or reduction on a wide range of Australian goods in demand in India.
Over 85% of Australian goods exports are already tariff free in India, which will rise to 90% by 2028. ECTA is a stepping stone towards a full Australia-India Comprehensive Economic Cooperation Agreement (CECA).
Opportunities for Australian companies looking to export to India feature:
Foodstuff
– Seafood: Duties on Australian exports to India are 30%. As a result of ECTA, tariffs on fresh rock lobster were removed in 2022, and phased elimination of tariffs on most other seafood will take place over 6 years.
– Wine: Key ECTA market access outcomes that started in 2022 include:
150% tariff cut to 100% and phased to 50% over 9 years for bottles valued over US$5
150% tariff cut to 75% and phased to 25% over 9 years for bottles valued over US$15
– Infant formula: Duty on Australian infant formula was 50%, however there will be phased elimination of tariffs over 6 years.
Materials
– Hides and skins: tariffs locked at zero percent as from 29 December 2022 for raw and processed hides and skins.
– Wood and paper products: Key ECTA market access outcomes include phased elimination of tariffs of up to 20% on wood and wood products including sandalwood chips, over 6 years.
– Construction: India has earmarked US$1.5 trillion for national infrastructure projects over 5 years. There are opportunities for Australian businesses in urban, transport and water infrastructure projects, and construction and building management technologies.
Pharmaceutical, Health and Beauty
– Pharmaceutical products: Key ECTA market access outcomes include phased elimination of tariffs on pharmaceutical products over 4 years.
– Health: There are real opportunities in India’s healthcare market, which passed A$212 million per annum after the COVID-19 pandemic.
– Cosmetics: The 20% tariff on cosmetics was eliminated in 2022.
Technology
– The Australia-India Innovation Network aims to increase the number of Australian technology companies accessing the rapidly growing digital sector in India.
– Defence: Exporters can take advantage of strategic engagements with India to drive commercial collaboration in the defence and space industry.
– Space and satellites: There are opportunities in India’s space sector. Australia recently cooperated on the safe recovery of India’s first manned crew module, the Gaganyaan.
– Providing satellite data to farmers: there is demand for satellites to generate insights for India’s agriculture sector, as many small farms require better, more timely information.
Assistance from Indian Customs
Advance rulings on tariff treatment under ECTA, as well as streamlined documentation requirements, allow for faster processing of goods. Australian exporters may seek formal advice from the Central Board of Indirect Taxes and Customs of India on the tariff classification of the goods intended for export to India. An application form for an advance ruling is available on India’s Customs website.
Your first stop for exports by air or sea should be at Colless Young. Whether you are new to the Indian market, or have established buyers there, explore your full potential with us as your partner. For comprehensive information – including freight rates – talk to Andrew, Tel: +61 7 3890 0800 email enq@collessyoung.com.au
