Exporting to India

India, located in South Asia, is the world's second most populous country with a population of 1.3 billion. Positioned as the largest democracy in the world and, at the same time, the fifth largest economy, India is one of the most important countries for foreign trade due to its rich lands and advanced technology. There is a very large production volume and demand for imports. In this vibrant market, where many Turkish companies have set their sights, there are a significant number of Turkish investors and organizations. Let’s take a closer look at what you need to do to embark on your journey of exporting from Turkey to India.

How to Export to India?

The internet usage rate in India covers about 41% of the population. While this rate is not considered high for a country under normal circumstances, it translates to approximately 600 million regular internet users in India with its 1.3 billion population. With opportunities being nearly limitless in such a large market, India is becoming an important gateway for exporters as well. E-commerce sales are expected to exceed 120 billion by 2025.

There are many websites commonly used by Indians. Due to its large population, there is significant demand for every type of product, while some sectors stand out particularly. One of the most important marketplaces in the country, Amazon, is the most widely used e-commerce site globally, and this statistic holds true for India as well. There are a significant number of important Indian users on Amazon, where everything from needles to rockets can be found. In addition, important e-commerce sites such as Snapdeal, Myantra, Shopdues, Tatacliq, Japong, and Paytmmall can also be listed for their popular use.

When exporting to India, where more than 150 million people maintain the market through online shopping, there are several topics to pay attention to. It is evident that marketing and product selection are vital aspects that should not be ignored in such a competitive market.

We are ready to assist you through our consulting company on this matter. As ODS Consulting Group, we provide support to grow your market by adding perspective to your strategic decisions.

What Companies Export to India?

There is a broad market in India for products sourced from Turkey. Several sectors stand out with their significant products in a country where products are sold across various sectors. Thanks to the increasing export activities of exporters, particularly on Amazon in recent years, the foreign trade relations between Turkey and India are strengthening day by day. In the export relations where marble and travertine exports stand out, the list includes iron-steel, motors and components, and food products. Companies aiming to export to India, which imported nearly $500 billion between 2019-2020, face a competitive market, but if these factors are assessed well, significant economic development is expected.

What Documents Are Needed to Export to India?

• To export to India, it is mandatory that your product sales occur under a company. You must establish a company and submit the relevant documents to the authorized institutions.
• Customs declarations related to the product you will sell must be prepared.
• Establishing an e-commerce and e-export site for your company is important for being able to display and sell your products.
• It is mandatory to obtain an ETGB (Electronic Trade Customs Declaration) for export activities falling within micro-export. Products within the limits of 15,000 Euros and 300 kg can receive VAT refunds of up to 18%. It is recommended that the relevant processes be prepared by your accountant.
• Necessary international shipping and delivery documents must be prepared and submitted to the authorized shipping companies and institutions.
• Commercial invoices must be prepared.
• Foreign trade in India is regulated under the Ministry of Trade, and some regulations and rules fall under WTO (World Trade Organization) scope. It is advisable to review these rules.
• If necessary, a certificate of origin must be prepared for your products. This document proves that the product you are selling is produced in the country from which it departs.
• Compliance with restrictions imposed on some animal food and cosmetic products is required. According to the tariff published by the Ministry of Health, the entry of cosmetic products tested on animals and certain animal fats into the country is prohibited.
• Particularly for food products, it is necessary to obtain health certificates, etc. for the required products and submit them to the relevant institutions upon entry into the country.

What Are the Export Taxes for India?

In recent years, India has implemented significant reductions in customs duties. Nevertheless, the tax rates remain above the WTO averages, and reductions are still applied occasionally due to WTO membership. The customs duties applicable in India vary based on 2-digit, 4-digit, 6-digit, and 8-digit HS codes. Broadly looking at the numbers, India imposes customs duties of up to 37.7% on over 1600 agricultural products under the 8-digit HS code. Additionally, the rates for grains, oilseeds, and sugary products are close to this figure, and a significantly higher tax is levied than the average. The tax rate for tobacco is 77.5% and for coffee and tea is 74.8%; the tax rates for alcoholic/non-alcoholic beverages are also close to the world average of taxation.

With internal taxes rising up to 50% based on sectors, India is one of the countries that demand the highest taxes.

What Products Are Exported to India?

India, being one of the leading countries in pharmaceutical imports, also significantly demands this commercial activity from Turkey. Consequently, the sectors where export to India is prominent from Turkey, which is particularly in the chemical sector, are followed by defense industry, steel, textiles, and cultural products. There has been a significant export boom after the pandemic. In 2021, the leading sectors in Turkey’s exports to India and their respective figures are as follows:
• Marble and travertine, eco-stone, water marble, limestone = 92,538 (This represents a +55.5% change compared to the previous year.)
• Iron ore, scrap iron or steel, or ingots obtained from the melting of these = 91,397 (+46.4%)
• Soybean oil and its fractions (chemically unmodified) = 73,665 (+131.3%)
• Apples, pears, and quinces (fresh) = 67,743 (+145.2%)
• Parts and components of motors under positions 84.07 or 84.08 = 30,029 (+91.1%)
• Washing and drying machines for dishes, bottles, etc.; filling, labeling machines for bottles, box sacks, etc.; packaging machines = 29,108 (+18.1%)
• Oils from mineral oils and bituminous minerals = 23,716 (+76.1%)
• Bovine (including buffalo) and horse hide and skins = 23,054 (+126.3%)
• Parts and components for road vehicles = 21,631 (+40.6%)
• Natural borates and their concentrates = 19,562 (+51.5%)
• Ferro alloys = 19,489 (+354.6%)
• Carbonates; commercial ammonium carbonate containing percarbonate, ammonium carbonate = 17,856 (+18%)
• Parts and components of machinery for work and mining = 17,525 (+294.5%)
• Refrigerators, freezers and other cooling and freezing devices, and heat pumps = 15,916 (+52.6%)
• Machines and devices for cleaning, sorting, and grinding seeds, grains, and dry legumes = 15,664 (+86.7%)

What Is the Trade Volume Between Turkey and India Like?

India and Turkey reached their highest trade volume ever in 2021, achieving significant successes with an increase of 46.7% in their bilateral relations. Chosen as one of the target countries for 2023 by the Ministry of Foreign Affairs, India has started to become a priority for exporters. It is estimated that commercial relations between the two countries, which measured a trade volume of nearly 10 billion in 2021, will continue to progress.