The whole world right now is looking at India with a hopeful glance as India is gradually emerging as the hotpot of economic growth. The USA has always eyed India as a favorite market for the export of US-based products. The Indian customer base has embraced US products, and that's why US manufacturers consider India as one of the leading markets for exporting their products.
But there are certain difficulties that US manufacturers often face while exporting their products to India. The entire process gets quite challenging because of multiple factors. If you are wondering what makes exporting to India from the USA a strenuous process, scroll down!
Different challenges that US manufacturers come across while exporting to India from the USA
· Lack of an apt infrastructure
India is racing against time to emerge as one of the strongest economies in the world. There are several hurdles that the nation still needs to overcome, such as underdeveloped railroads, roads, lack of power grids, adequate telecommunication facilities, and so on. These factors impact the smooth completion of export from the USA as well. India is a vast country so getting products from Indian shipping ports to deep inside Indian territory is a time consuming process that cuts into the attractiveness of US exporters who ship to India as things slow down within India before getting to its final destination.
· Curbs pertaining to e-commerce and data localization
The data localization policy adopted by the Indian government is quite stringent. It is posing great difficulties for all American businesses and companies. Also, laws and regulations keep on changing when it comes to e-commerce. These norms and conditions are dampening the spirit of all US manufacturers who are eager to explore economic opportunities within India.
· Hefty tariffs
The Indian government has kept the tariffs quite high for US exporters as well as other investors. The sky-rocketed rates often feel heavy on the pockets of the USA manufacturers, thereby making exporting to India from the USA a complicated and expensive process. If these tariffs are passed on to Indian importers, they are reluctant to pay it knowing their end consumers in India won’t pay a higher price for these imported products.
· Different business and economic conditions and regulations
In India, there are in total 29 states and 7 Union Territories (UT). The economic and business regulations vary in each of these states and UTs. You will come across a huge contrast when it comes to taxation, regulations, governance, labor relations, level of education, political leadership, etc. The lack of business, legal and economic uniformity across all states and UT is not something foreign exporters or investors find very attractive.
What’s the solution?
If you wish to experience a seamless experience of exporting to India from the USA, then you must hire the impeccable services of a trading company. Such companies always share your burden and help in an easy and convenient export process. Their goal is to help manufacturers export their products through different supply chains safely to different parts of the world.
A renowned trading company will have a full-fledged team of experts who will take care of all the aspects of exporting on your behalf. From arranging suppliers to keeping a tab on the paperwork, every single thing will be taken care of by a trading company.
Are you still unsure as to which trading company to partner with? Choose the services of Royale Global. We are a US-based international trading company with years of experience. We help US-based manufacturers from diverse sectors and industries such as metals, agriculture, heavy equipment, and automotive. Try their exemplary trading services today and witness seamless exporting to India from the USA.