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Importing from India

Date: 2010-07-21

India is a major, and growing import market and offers great possibilities for UK businesses looking for a new import market. Trade between Europe and India has increased rapidly in recent years, the UK is India's second largest trading partner after the US.

UK importers customarily handle all import procedures. This guide highlights some of the key features of the Indian market, and explains how you can start to win import business there. It also identifies sources of support to help you.

ASSESS THE OPPORTUNITY TO TRADE WITH INDIA

With a population of over one billion people, and a rapidly developing economy, India is a huge potential market; there are many opportunities to import from India. UK's imports from India are textiles and readymade garments, gems and jewellery, footwear, metal manufactures, power generating equipment, organic chemicals and vegetables and fruit.

While many Indian businesses remain small, there are a number of large, world-class companies. Key sectors include IT, healthcare, pharmaceuticals and support services such as call centres. In the future, continuing trade liberalisation and economic reforms are expected. This should ensure that India remains an attractive import market over coming years.

REGIONAL FOCUS

Within India, there are significant local differences in wealth and commercial activity. Agricultural areas tend to be relatively poor. Large, international businesses are concentrated in major cities. These commercial centres are the primary targets for import.

UNDERSTANDING INDIAN CUSTOMERS

India is ethnically diverse, with a whole range of different languages and religions. Although Hindi is the official national language, less than half the population speak it. English is the key language for commerce. Most business people you deal with, when importing, are likely to speak good English.

Indian business culture tends to be polite and somewhat formal - for example, exchanging business cards, and using titles and surnames rather than first names. It's normal practice to start meetings with small talk rather than getting straight down to business. At the same time, India is very culturally diverse, with a whole range of different customs and religions. A good rule of thumb in meetings is to follow your host's lead.

BUILDING RELATIONSHIPS

Indian businesses are organised in a similar way to the UK, but decision-making power tends to be concentrated at the top. A personal introduction to a top-level individual can be very helpful.

Winning new business can take longer than you would like. You should be prepared to invest time and effort in building a long-term relationship.

TRADE VISITS TO INDIA

Successfully importing from India depends on building relationships, and often requires several face-to-face meetings. Trade visits can help you identify potential customers and key contacts, and find out what they think of your product. You can also use them to build relationships with local advisers and other key contacts.

Find out about trade visits and business opportunities on the events section of the website.

To make the most of trade visits, plan well in advance. Make sure you have a clear objective and organise all the support material you need. Try to make appointments with target contacts in advance, and reconfirm them shortly before you travel. Make sure you're speaking to people who make importing decisions. If you have local agents, use their expertise. In an organised trade visit, the organisers should help you find contacts.