So you’re thinking of doing business in India and are keen to know more about Australia’s relationship with this South Asian country? Let’s take a closer look at India’s imports of goods and services from Australia, which add up to a huge AU $22.8 billion of each year (figures taken from 2018-19). This amount is divided up as follows:
- Indian imports of goods –AU $16.2 billion
- Indian imports of services – AU $6.6 billion
So What Are Service Imports?
We hear significantly less about service exports than goods exports, but the former is a growing market that is worth considering if you’re considering trading with India. A service export is a service that is provided from a person who is resident in one country to people or companies in another country. So in this case, it’s a service provided by an Australian inhabitant to an Indian individual or company.
Here are some examples of service imports carried out by Indian individuals or companies:
– A experience paid for by a Indian tourist while in Australia (for example renting a car or partaking in a tour or trip with a travel agency)
– A Indian company receiving advice from an Australian tax advisor about doing business in Australasia
– Rents paid by a Indian company for the use of property in Australia (and in the context of freight forwarding, rental of warehouses)
– Australian actors employed by a Indian film company
As we’re brought closer to our overseas friends through social media and increasingly efficient digital networks and infrastructure, the service exports industry is gaining traction around the globe.
India: Imports Of Services From Australia
With a young population, over half a billion internet users and an aspirational middle class, India has huge potential for imports of Australian services. These may occur in a range of sectors including education, tourism, sport and financial services. As we said above, India imported around AU $6.6 billion of services from Australia annually in 2018-19. The main services being imported by India during that time were related to education and personal travel.
When you export goods to Asia from Australia, the process is likely to include Indian imports of services in some form or another – for example the translation of documents, providing training to Indian staff about how to treat or use imported items and hiring handling personnel within Australia.
India: Imports Of Goods From Australia
Indian imports of services can be added to the ever-growing industry of goods imports from Australia to India. In 2018-19 India imported AU $16.2 billion of goods from Australia annually. The top three items being exported to India from Australia during that time were coal, natural gas and gold. There are many good reasons to export to India. Although there is currently no free trade agreement between India and Australia, a deal is under negotiation for an agreement – you can find out the latest about it from the Department of Foreign Affairs and Trade. In the meantime, the Australian Government has officially endorsed the India Economic Strategy and its aspirations for bilateral investment and trade. India has also recently moved up to 63rd place of 190 for the World Bank ease-of-doing-business rankings.
TSL: Air & Sea Freight Forwarder India-Australia
TSL is a market leader in logistics, operating high-frequency ocean and air services all over the world. Here’s an example of just some of the services we provide as a professional air & sea freight forwarder India-Australia:
-Finding the most cost-efficient way to transport your products from Australia to Asia
-Striking deals with sea and air carriers to secure reduced rates for your business
-Ensuring the completion of paperwork regarding customs clearance, tax requirements including Basic Customs Duty (BCD) and other legal regulations
-Catering specifically for your company’s requirements
For more information about services and goods imports Australia to India, please contact the team at TSL today. You can get in touch by: