Imports from India – Why Austrian companies should keep an eye on India
Currently, 150 Austrian subsidiaries, offices or Austrian-Indian joint ventures are active in India; of these, around 60 are manufacturing companies that depend on the reliable shipment and transport of their goods to Austria. In addition to products of the manufacturing industry, textiles, jewellery, tea and spices are also imported into Austria. The potential for investment by Austrian companies is huge.
India’s role in the global economy and for Austria
The subcontinent of India is on its way to playing a significant role in the world. India’s economy is catching up rapidly, has already overtaken the UK and could soon overtake Germany to become the third largest economy in the world1 – nach den USA und China.
According to estimates by the International Monetary Fund (IMF), India is becoming the new driver of the global economy. The projected economic growth for 2024 in comparison: USA: 1,4 %, China: 4,5 %, India: 6,3 %.
The government is planning and promoting India’s integration into the world economy and global value chains. This not only stimulates competition in Asia, but also opens up a multitude of opportunities for Austrian investors in terms of sourcing and diversifying their suppliers, i.e. expanding their business relationships in their imports and exports.
Import volume from India to Austria is increasing rapidly
In 2022, Austria’s imports from India increased by around 40 % to 1.56 billion euros compared to the previous year. And this is true for all product groups, and the trend continues to rise. Imports of machinery, electrical circuits and electronic components as well as power and work machines alone recorded a combined increase of 51.6 % to EUR 546.2 million. Foreign trade with India is booming and Austria’s manufacturing companies in particular depend on a secure and smooth supply of components and (machinery) spare parts to secure their supply chain.
With the expansion of trade relations with India, the demand from Austrian B2B companies for secure and fast shipping solutions for India imports is also growing. An all-in-one shipping platform for B2B customers including transparent price comparison and a large selection of carriers can save shippers costs, nerves and resources.
Imports of parcels and pallets from India
Austria and India are separated by almost 8000 kilometres – a long transport distance. Delivery times are highly dependent on whether you want to import parcels, pallets or documents. Weight and size, the selected services, whether express or standard, and the choice of shipping service provider are also decisive. Our portfolio offers you a large selection of reliable international shipping service providers, such as UPS, TNT, DHL and FedEx, who will safely bring your goods from India to Austria.
So far, there is no free trade agreement with the EU, which leads to increased customs duties. At LetMeShip, we have no influence on customs duties, but we do have influence on the shipping rates for your India imports. You can see all shipping rates and delivery times directly on our shipping platform. And best of all, registration on our booking and shipping platform is free of charge.
For your imports from India, we recommend express shipping for parcels and/or pallets: It’s faster. This way you can better plan deliveries and ensure the supply of goods for your company. For example, express shipping of a parcel from India to Austria takes between 2-4 working days.
Our tip for air freight bookings: Please find out in advance whether the carrier in India requires special permits (documents) for your air freight on collection in order to avoid delays.
Exports from Austria to India
Domestic exports to India increased by 15.2 % to EUR 1.19 bn in 2022, having already set a new export record in the previous year and surpassed the 1 bn mark for the first time. This very strong increase can be seen in all important export sectors. Austrian know-how is in great demand in India, especially in the export of advanced technologies and technology transfer. Business opportunities exist in the areas of industrial modernisation, transport infrastructure, the energy industry and in the smart city sector (urban and environmental technologies).2
India invests massively in infrastructure and logistics routes
Importers and exporters to India still have great uncertainties about the transport infrastructure in the country. But shippers can relax, because India’s infrastructural connectivity is progressing in leaps and bounds.
For example, India’s government is planning infrastructure investments of USD 120 billion for the 2023/24 financial year. This corresponds to an increase of 33%. Added to this is an additional USD 30 billion for the railway sector. This means that the government’s railway investment budget is nine times higher than 10 years ago.
- investment funds flow into improving the transport logistics of 100 neuralgic transport infrastructure projects, including in the areas of the ports.
- setting up an infrastructure development fund for infrastructure development in small towns: around 50 airports are being reactivated to improve regional air traffic. This will also create more capacity and opportunities for the air cargo sector within India.
- investment of USD 2.1 billion for the development of the 7,200 km International North South Transport Corridor (INSTC). The INSTC is a transport network of ship, rail and road on the route between India, Iran, Azerbaijan and Russia including the expansion of the Chabahar port in Iran and the construction of the 500 km Chabahar-Zahedan railway.
- the digital platform “Gati Shakti Master Plan” for multi-modal connectivity was launched as early as the end of 2021, which will integrate all public transport infrastructure projects and enable better planning and coordination. The Mumbai-Calcutta Special Rail Freight Corridor is scheduled to be operational in the first half of 2023, and the expansion and new construction of the road network, ports, logistics parks and railway network is being driven forward.
B2B shipping platform simplifies supplier management and shipment tracking
Kleine und mittlere Unternehmen in Österreich haben es in der Regel besonders schwer, von attraktiven Preisen bei ihren Importen aus einem Drittland wie Indien zu profitieren. Hinzukommen Sprachbarrieren und kulturelle Unterschiede, wenn ad-hoc ein passender Versanddienstleister gefunden werden muss. Die All-in-One Versandplattform ermöglicht dir mehr Flexibilität bei der Buchung erfahrener Carrier, ohne Mehrkosten und aufwändigen Preisverhandlungen und bietet zudem weitere Vorteile:
- Du kannst ganz einfach deine Lieferanten zu deinem Account einladen, damit diese zu deinen Konditionen buchen. Außerdem kannst du festlegen, mit welchem Versanddienstleister der indische Exporteur versendet. So hast du deine Versandkosten jederzeit im Blick, unnötige Preisverhandlungen entfallen.
- Die Versandplattform ermöglicht dir zudem einen unkomplizierten Dokumenten-Upload und bietet eine Archiv-Funktion. So kannst du deine Zolldokumente direkt im System erstellen und dem Carrier zur Verfügung zu stellen.
- Sendungsverfolgung: Mit der integrierten Sendungsverfolgung weißt du jederzeit, wo in Indien sich deine Sendung befindet.
- Für die Beratung in besonders kniffligen Fällen oder bei Rückfragen zum Zoll steht dir unser Customer Service Team persönlich zur Seite.
If you want to learn more about your imports from the neighbouring country Bosnia-Herzegovina, we have compiled more information for you in our blog article.
Sources:
1 Business Insider Deutschland GmbH. Business Insider.de, 24. September 2022.
2 AUSSENWIRTSCHAFT AUSTRIA DER WKÖ. Wirtschaftsbericht Indien. Außenwirtschaftscenter New Delhi (März 2023).
3 AUSSENWIRTSCHAFT AUSTRIA DER WKÖ. Wirtschaftsbericht Indien. Außenwirtschaftscenter New Delhi (März 2023).
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