{"id":3923,"date":"2017-09-20T07:03:43","date_gmt":"2017-09-20T06:03:43","guid":{"rendered":"https:\/\/www.conferencecall.nl\/blog-uk\/?p=3923"},"modified":"2017-09-17T15:30:49","modified_gmt":"2017-09-17T14:30:49","slug":"exporting-to-india-everything-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.conferencecall.nl\/blog-uk\/exporting-to-india-everything-you-need-to-know\/","title":{"rendered":"Exporting to India &#8211; everything you need to know"},"content":{"rendered":"<p>Doing business in India isn&#8217;t easy, and it takes a lot of patience and a solid, long-term strategy to crack markets that vary considerably across a vast country of 29 different states and seven union territories.<\/p>\n<p>But if you&#8217;ve the time, patience, and means to tackle it, you&#8217;ll be opening your business up to one of the world&#8217;s fastest-growing economies, and a goods and services export market worth around \u00a38.5 billion.<\/p>\n<p>Here&#8217;s everything you need to know about exporting to India&#8230;<\/p>\n<p><!--more--><\/p>\n<h2>What are the pros and cons of exporting to India?<\/h2>\n<p>India is a massive country with a population of around 1.25 billion people, and is\u00a0a melting pot of cultures and religions, with six main ethnic groups, seven major religions and many more minor ones, so if you&#8217;re visiting on business, make sure\u00a0it doesn&#8217;t clash with a holiday period.<\/p>\n<p>So, why do business with India? The strengths of the Indian market include:<\/p>\n<ul>\n<li>fast growing economy with one of the world\u2019s largest youth populations<\/li>\n<li>expanding emerging cities with more than 50 cities now over a million people<\/li>\n<li>availability of skilled, low cost workforce<\/li>\n<li>good network of banks, financial institutions and an organised capital market<\/li>\n<\/ul>\n<p>And the benefits to UK businesses include:<\/p>\n<ul>\n<li>English widely spoken<\/li>\n<li>common legal and administrative history<\/li>\n<li>rising personal incomes creating a new middle class consumer market<\/li>\n<li>gateway to south east Asian markets<\/li>\n<\/ul>\n<p>One of the main problems with the Indian market is that consumers often prefer low prices to quality and durability, so you may find it hard to get a foothold in the market, despite offering a superior standard\u00a0product or service.<\/p>\n<p>Other challenges include:<\/p>\n<ul>\n<li>barriers to trade and investment in some sectors resulting from regulatory constraints, local sourcing requirements and import tariffs<\/li>\n<li>protecting your Intellectual Property (<abbr title=\"Intellectual Property\">IP<\/abbr>)<\/li>\n<li>risk of bureaucratic delays<\/li>\n<li>land acquisition can be difficult<\/li>\n<li>risk of bribery and corruption<\/li>\n<li>access to the right skills in the local workforce<\/li>\n<li>poor infrastructure, including distribution and logistics as much of India remains rural<\/li>\n<li>weather extremes with extremely hot weather in summer and wet weather in the monsoon season can affect business<\/li>\n<\/ul>\n<p><iframe src=\"https:\/\/www.youtube.com\/embed\/RRKVqj2Zm6U\" width=\"600\" height=\"355\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>If you&#8217;re in any of the following industries, you should find your goods and services are in demand in India:<\/p>\n<ul>\n<li>mineral fuels and oils<\/li>\n<li>gems and precious metals<\/li>\n<li>electrical machinery and equipment and parts<\/li>\n<li>machinery, mechanical appliances, reactors and boilers<\/li>\n<li>organic chemicals<\/li>\n<li>iron and steel<\/li>\n<li>plastics<\/li>\n<li>animal or vegetable fats and oils<\/li>\n<li>fertilisers<\/li>\n<li>medical, optical, photographic, measuring, precision, medical or surgical equipment<\/li>\n<\/ul>\n<div>If you\u2019re doing business in India, you\u2019ll need a reliable and cost-effective <a href=\"https:\/\/www.conferencecall.co.uk\/conference-call\" target=\"_blank\" rel=\"noopener\">teleconference<\/a>\u00a0provider to help keep in touch when travelling isn\u2019t an option. Here\u2019s\u00a0<em>How to set up a conference call between the UK and India.<\/em><\/div>\n<div>\n<p>And remember, you can now screen share and video conference, using <a href=\"https:\/\/www.conferencecall.nl\/blog-uk\/now-can-screen-share-conference-calls\/\" target=\"_blank\" rel=\"noopener noreferrer\">Crankwheel<\/a>.<\/p>\n<div>\n<h2>How does tax work in India?<\/h2>\n<p>A double taxation agreement exists between the UK and India, so tax isn\u2019t paid twice \u2013 once in each country \u2013 on exported goods and services.<\/p>\n<p>The main tax rates include:<\/p>\n<ul>\n<li><strong>Corporate Tax<\/strong>\u00a0\u2013 set at a rate of 25% for domestic businesses. Corporate tax on a UK company in India will depend upon the taxation agreement between the governments of India and the UK.<\/li>\n<li><strong>Income tax<\/strong>\u00a0\u2013 ranges from 0% to 30%, depending upon income.<\/li>\n<li><strong>Capital Gains Tax<\/strong>\u00a0\u2013\u00a0set at a rate of 20% with indexation, and 10%without indexation.<\/li>\n<li><strong>Valued Added Tax<\/strong>\u00a0(VAT) \u2013 charged between 0% and 28%.<\/li>\n<\/ul>\n<p>If your business is VAT registered, you can zero-rate the\u00a0<abbr title=\"Value Added Tax\">VAT<\/abbr>\u00a0on most goods you export to India, provided you submit evidence of the export within three months of the sale.<\/p>\n<h2>How will I be affected by customs in India?<\/h2>\n<\/div>\n<\/div>\n<p>When exporting to India, you need to make export declarations to HMRC through the National Export System (NES), here&#8217;s\u00a0<a href=\"https:\/\/www.gov.uk\/national-export-system\">how to declare your exports through the\u00a0<abbr title=\"National Export System\">NES<\/abbr>\u00a0to India<\/a>.<\/p>\n<p>You&#8217;ll also need to classify your goods as part of the declaration, including a commodity code and a Customs Procedure Code (CPC). You can find commodity codes and other measures applying to exports in the\u00a0<a href=\"https:\/\/www.gov.uk\/trade-tariff\">UK Trade Tariff<\/a>.<\/p>\n<p><a href=\"https:\/\/www.conferencecall.co.uk\/conference-call\"><img decoding=\"async\" class=\"alignnone wp-image-1777 size-full\" src=\"https:\/\/www.conferencecall.nl\/blog-uk\/wp-content\/uploads\/2015\/05\/conference-call-banner.jpg\" alt=\"\" width=\"750\" height=\"118\" \/><\/a><\/p>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Doing business in India isn&#8217;t easy, and it takes a lot of patience and a solid, long-term strategy to crack markets that vary considerably across a vast country of 29<\/p>\n<div class=\"more-link-wrapper\"><a class=\"more-link\" href=\"https:\/\/www.conferencecall.nl\/blog-uk\/exporting-to-india-everything-you-need-to-know\/\">Read More<span class=\"screen-reader-text\">Exporting to India &#8211; everything you need to know<\/span><\/a><\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[22,2,7],"tags":[23,3,24],"_links":{"self":[{"href":"https:\/\/www.conferencecall.nl\/blog-uk\/wp-json\/wp\/v2\/posts\/3923"}],"collection":[{"href":"https:\/\/www.conferencecall.nl\/blog-uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conferencecall.nl\/blog-uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conferencecall.nl\/blog-uk\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conferencecall.nl\/blog-uk\/wp-json\/wp\/v2\/comments?post=3923"}],"version-history":[{"count":4,"href":"https:\/\/www.conferencecall.nl\/blog-uk\/wp-json\/wp\/v2\/posts\/3923\/revisions"}],"predecessor-version":[{"id":3946,"href":"https:\/\/www.conferencecall.nl\/blog-uk\/wp-json\/wp\/v2\/posts\/3923\/revisions\/3946"}],"wp:attachment":[{"href":"https:\/\/www.conferencecall.nl\/blog-uk\/wp-json\/wp\/v2\/media?parent=3923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conferencecall.nl\/blog-uk\/wp-json\/wp\/v2\/categories?post=3923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conferencecall.nl\/blog-uk\/wp-json\/wp\/v2\/tags?post=3923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}