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Current business situation

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Visiting this country
Security & health, Visas, Travel tips & facts

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Country overview
Country facts, Economic climate, Political climate, Trade relations & statistics

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Useful websites and resources
Government, business & trade, News & media, Travel & tourism

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Doing business
Business opportunities, Business etiquette, Tariffs & regulations, Documentation, Taxation, Business travel

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Contact details
Austrade offices, Australian Embassy

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Austrade offices
The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.
Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.
See map below for Austrade office locations for this country. Please note that the markers are a guide only. A full list of Austrade offices (in alphabetical order of country) is also available.
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au
Australian Embassy
Australian High Commission in India 1/50G Shantipath Chanakyapuri New Delhi 110 021 Tel: +91 11 4139 9900 Fax: +91 11 4149 4490
Business hours: 8.30am to 5.00pm, Monday to Friday
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Country facts
| Capital city: |
New Delhi |
| Surface area: |
3,287,000 sq km |
| Population: |
1,124 million (2007) |
| Official language(s): |
Hindi, English |
| Government: |
Federal republic |
| Head of State: |
HE Mrs Pratibha Devisingh Patil |
| Head of Government: |
Prime Minister The Hon Dr Manmohan Singh |
| Australian exports to India: |
A$11,350 million (2007) |
| Australian imports from India: |
A$1,918 million (2007) |
| India's principal export destinations: |
USA, United Arab Emirates, China |
| India's principal import sources: |
China, Saudi Arabia, USA | (Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
Economic climate
In the last decade, significant structural reforms helped India become one of the world's fastest growing emerging economies. Economic liberalisation and rising incomes also stimulated rapid trade growth with Australia and significantly increased Australia's foreign direct investment in India.
India is a big, diverse economy with a current growth outlook that overshadows most Asian markets. While the pace of growth in the medium to longer term will depend largely on the speed and extent of ongoing reform, at a time when almost all other Asian economies are anticipating contraction or slow growth, the Indian market cannot be ignored. Several fast growing sectors and states provide increasing opportunities for Australian exporters and investors to build on that success.
The Department of Foreign Affairs and Trade in conjunction with Austrade have developed a publication called 'India: New Economy, Old Economy'. It looks at factors that have helped India become one of the world's fastest growing emerging economies, as well as highlighting the fast growing sectors and states that provide increasing opportunities for Australian business.
Since the liberalisation of its economy in 1991, India has opened up many sectors that were previously reserved for the government, to the private, including foreign, investment. Competition in the telecommunication, infrastructure, power, petroleum and transport sectors is being actively encouraged.
Key economic indicators and statistics for 2008:
GDP - US$1,232.9 billion GDP per capita - US$1,082 Real GDP growth - 7.9 per cent Inflation - 5.2 per cent
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
Political climate
India is the largest democracy in the world. It is a sovereign democratic republic and has a parliamentary system of government with a federal structure. The central government in New Delhi has exclusive jurisdiction over all matters of national interest such as defence, communication, banking and finance, international trade and foreign affairs. The state governments have primary responsibility for matters such as law and order, education, health and agriculture.
Political climate is stable, although the current ruling government is a coalition of several political parties, which came together to form the United Progressive Alliance.
Trade relations and statistics
India is a member of the World Trade Organization and has a well-evolved foreign policy based on tenets of non-alignment and peace. A member of the United Nations and Commonwealth, an important achievement of India’s foreign policy has been the strengthening of regional cooperation. India is an active member of the South Asian Association for Regional Cooperation (SAARC).
As members of the Commonwealth, India and Australia have a shared language and similar legal and government systems. Strong belief in democracy and common interests as the Indian Ocean littoral states puts the two countries on the same side of political dialogue. With the increasing importance of the Asia-Pacific region, there are concerted efforts on both sides to expand and diversify bilateral relations.
Updated India Country brief available at www.dfat.gov.au/geo/india/india_brief.html
commerce.nic.in provides an overview of India’s trade policies, trade statistics and trade agreements.
Major Australian exports to India (2007):
- Non-monetary gold – A$4,728million
- Coal – A$2,396 million
- Copper ores – A$1,113 million
- Wool – A$151 million
Major Australian imports from India (2007):
- Pearls and gems – A$108 million
- Rotating Electric Plant - A$88 million
- Jewellery – A$63 million
- Medicaments (incl. veterinary) – A$38 million
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
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Business opportunities
Austrade's business development specialists have prepared a select range of market profiles with potential business opportunities and to assist in your exporting investigations. Please view the list of industries in the side bar.
In conjunction with the market profiles, the Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
Utsav Australia
As part of The Utsav Australia campaign, Austrade has a website targeted at Indian businesses. The website www.utsavaustralia.in is an important element of Austrade’s work in showcasing Australian export capability, promoting Australian exporters in India and generating export sales / partnership leads from India.
The website features listing of Austrade India’s events and activities; articles around Austrade’s clients in India; offerings from Australian exporters that are seeking partners, distributors & customers in India and industry / sector profiles highlighting Australian export capabilities
Free listings for Austrade's clients
Austrade is offering its clients the option to use the website to promote their products / services and their organisation in India. This offer will be available free for all clients of Austrade. For more information, email utsavaustralia@austrade.gov.au.
For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.
Business etiquette
Though a traditional society at heart, when it comes to business dealings most internationally accepted practices are widely followed in the country. Indians, for the most part, possess all the required skills such as language (English is widely used in written and oral communication), managerial and technical, and are able to negotiate competently.
Any entertaining of business partners or clients is mostly done outside of the home In a business meeting using a formal manner of addressing a person eg. ‘Mr. Smith’, is safer than using their first name.
Business cards are expected to be exchanged at most business meeting.
Punctuality is not a strong point of most Indians, but that is more a cultural thing than a professional shortcoming.
Most government offices are open five days a week. However, private businesses may follow a five or six-day working week.
A multicultural and multi-religious society, India celebrates numerous religious and secular holidays. In certain parts of the country, some of the religious occasions are celebrated many days, such as Durga Puja in West Bengal and neighbouring states, and Ganesh Chaturthi in Maharashtra. Dussehra and Diwali are also widely celebrated. It is advisable to avoid scheduling a meeting around major holidays.
Detailed information & tips on business etiquette in India is available at www.executiveplanet.com/index.php?title=India
Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.
Tariffs and regulations
India’s foreign trade policy, information on import tariffs, customs regulations and notifications are available below through the following links;
India’s Foreign Trade Policy for 2008-2009 is available at - 164.100.9.245/exim/2000/policy/ftp-plcontents2008.pdf
Customs Regulations - www.customs.gov.in/customs/cs-act/formatted-htmls/cs-regu-idx.htm
Import Tariff and Exemption Notifications are available at - www.customs.gov.in/customs/cst-0708/cst-main.htm
Import / Export Restrictions / Prohibitions under Customs law - www.customs.gov.in/customs/cs-manual/manual_8.htm
Also, read about Procedure for Clearance of Imported and Export Goods at - www.customs.gov.in/customs/cs-manual/manual_3.htm
Packing, marking and labelling
Packing should be strong and should guard against extreme heat and humidity in summer, and possible storage in the open and pilferage. Steel strapping is recommended.
Outer containers should bear consignee's mark and port mark and also should be numbered (to accord with packing list) unless their contents can be otherwise readily identified. Gross weight must be shown on two faces.
Detailed Information on the same is available at www.infodriveindia.com/Exim/Indian-Customs/Non-Tariff-Barriers/Labeling-Rules-for-Imports.aspx
Weights and measures
The metric system.
Insurance
Normal commercial practice.
Methods of quoting and payment
Quotations are usually required to indicate FOB or CIF prices, with freight and insurance charges separately shown. They should be expressed in US dollars or Indian rupees. Quotes to government purchasing agencies should be both FOB and CIF.
Payment is normally by irrevocable letter of credit. For government contracts, terms of 90 days or more are usually requested.
Public health requirements
Live animals, plants, and parts of plants must be accompanied by health certificates issued by an approved authority in the country of origin. In Australia this is usually the Australian Quarantine and Inspection Service (AQIS), Commonwealth Department of Agriculture, Fisheries and Forestry-Australia or the relevant state department of agriculture, and must be certified by an approved authority.
Plants may be imported only through ports where fumigation and inspection facilities are available.
Fruit, vegetables and all foodstuffs are subject to inspection on arrival.
Food quality and purity are subject to strict national and state regulations. The requirements also extend over the use of preservatives, colouring matter, artificial sweeteners, containers and their marking and labelling.
Drugs are subject to stringent controls covering import, manufacture, distribution and sale.Imported drugs require prior sampling and testing. Legal standards used for drugs are the British Pharmacopoeia and the US National Formulary.
Documentation
Commercial invoice
No prescribed form listed. A minimum of four copies is required, and must be signed by the supplier in exporting country. The invoice must show details such as:
- Country of origin
- Consignee's name
- The number and date of letter of credit and import licence number
- Terms of payment
- Name of carrier
- Number
- Description and identifying marks of outer containers
- Detailed description of the goods including quantity, weight (gross and net), value, shipping charges and insurance
Certificate of origin
Issued by local Chamber of Commerce (three copies normally required).
Bill of lading
Minimum of two copies normally required. To Order bills are also acceptable.
Freight charges must be stated separately.
Quantities must be indicated in metric terms.
Import reference number and letter of credit number are to be shown.
Must indicate the name and address of the applicant and the issuing bank.
Packing list
Not compulsory, but facilitates clearance.
Special certificates
Livestock imports must be accompanied by a sanitary certificate issued by an approved authority in the country of origin.
Must be certified by an approved organisation.
Plants, plant products and leaf tobacco require phytosanitary certificates issued by an approved authority in the country of origin and certified by an approved organisation.
Additionally, leaf tobacco must be accompanied by a special certificate stating that the tobacco is free from ephestia elutella or that the pest does not exist in the country of origin. Any shipment of tobacco leaf arriving without the above certificate will be examined by an Indian Government inspector and a fee charged.
Used clothing requires a certificate of fumigation issued by an approved authority in the country of origin.
Port wine requires a certificate indicating alcoholic content and spirits may need a certificate of maturity.
Taxation
India has a well developed tax structure with a three-tier federal structure, comprising the Union Government, the State Governments and the Urban/Rural Local Bodies. The power to levy taxes and duties is distributed among the three tiers of Governments, in accordance with the provisions of the Indian Constitution. The main taxes/duties that the Union Government is empowered to levy are Income Tax (except tax on agricultural income, which the State Governments can levy), Customs duties, Central Excise and Sales Tax and Service Tax. The principal taxes levied by the State Governments are Sales Tax (tax on intra-State sale of goods), Stamp Duty (duty on transfer of property), State Excise (duty on manufacture of alcohol), Land Revenue (levy on land used for agricultural/non-agricultural purposes), Duty on Entertainment and Tax on Professions & Callings. The Local Bodies are empowered to levy tax on properties (buildings, etc.), Octroi (tax on entry of goods for use/consumption within areas of the Local Bodies), Tax on Markets and Tax/User Charges for utilities like water supply, drainage, etc.
Information on States Sales Tax and VAT is available at india.gov.in/citizen/salestax.php
Excise duties are levied on a wide range of items manufactured in India. On imported goods this is known as countervailing duty. Information on Excise duties are available at www.cbec.gov.in/excise/cx-tariff0708/cxt0708-idx.htm
Business travel
Although there are comprehensive local bus/train networks in most major towns, they are often overcrowded. It is advisable to avoid using public transport.
Taxis/hotel cars are the best mode of transport in most of the towns in India and are inexpensive by Australian standards. Taxis are metered in most major cities, but in some cities, fares are negotiable or have a surcharge. Pre-paid taxis and hiring chauffeur-driven cars are other options available.
To travel around a city it is best to hire a car and driver through the hotel. Hire a taxi for the day (but be precise about the period and negotiate the price) or hire a car and driver direct from car rental companies, like Hertz India, Orix India or Avis India.
India has an extensive network of railways. However, it is more efficient to travel by air as trains are slow by international standards. Additional information is available at www.lonelyplanet.com/worldguide/india/getting-there-and-around
Allow extra time when travelling during the peak hours, which are from 8.00am-11.00am and 5.00pm-8.00pm. |
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Security and health
The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to India. This is regularly updated, and should be checked before planning travel.
The security situation in the north-east remains uncertain. Australian citizens should consider deferring travel to the states in the region (Assam, Nagaland, Tripura and Manipur and exercise due caution if travelling in Arunachal Pradesh, Meghalaya and Mizoram). It is also advisable to avoid travel to the states of Jammu and Kashmir.
Health
A valid yellow fever certificate is mandatory for all persons (including infants) who have been, even in transit, to Africa, South America or Papua New Guinea before coming into India. The certificate becomes valid 10 days after vaccination.
Many of India's larger cities are highly polluted and travellers with respiratory ailments may wish to take precautionary measures. Eat only freshly cooked food and drink only bottled water.
For detailed information on prevalent diseases and inoculations, travellers should consult their doctor or a travel clinic. Travel and health insurance is strongly recommended for all overseas travel.
Visas
Passports and entry visas are required for all foreigners entering India. Tourist and business visas may be obtained from the nearest Indian High Commission or consulate in your country. Any foreign national arriving into India for a period of more than six months is required to register with the Foreigner Regional Registration Office (FRRO) within a period of 14 days of arrival. If the visit is under six months, the registration requirement will be as per the visa condition stamped on the visa issued. Additional information available at india.gov.in/overseas/passport.php
Contacts of FRRO are:
FRRO, New Delhi Hans Bhavan, Bahadur Shah Zafar Marg New Delhi 110 002 Tel: +91 11 2331 9781
FRRO, Mumbai Annexe #2, Commissioner of Police and FRRO Crawford Market Mumbai 400 001 Tel: +91 22 2262 1169
FRRO, Chennai Chief Immigration Officer, Bureau of Immigration Shastri Bhavan, Annexe #26, Haddows Road Chennai Tel: +91 44 2823 2642
Prior permission is required from the Indian authorities to visit certain parts of the country, particularly in the north-east. In particular, permits are required for Mizoram, Manipur, Nagaland, Arunachal Pradesh, Sikkim, parts of Kulu District and Spiti District of Himachal Pradesh, border areas of Jammu and Kashmir, some areas of Uttar Pradesh, parts of Rajasthan adjacent to the international border and the Andaman and Nicobar Islands.
The permit approval process for travel to certain parts of India can take up to two months. Advice on particular requirements should be sought from your travel agent or from the Indian mission in the city closest to you. Contact details for foreign representatives in Australia are available.
Travel tips and facts
Tipping 10 per cent is customary in restaurants and hotels in addition to the usual service included in the bill. The taxis and auto-rickshaws charge a fee over and above the metered amount; no tipping beyond the surcharge is required.
There are a number of restaurants across India that are good and cheap. Each city in India offers certain specialities. It is safe to eat freshly cooked food and to drink only bottled water.
India has a large number of good five-star hotels, and also cheap, reasonable and affordable hotels. The published rates vary between A$45–A$300. Special discounted rates are offered to diplomatic missions, MNCs, and large corporations. The publication of Federation of Hotel and Restaurant Association of India lists all the hotels in India along with their contact details and tariffs.
For further travel information please visit Lonely Planet.
Time
India is four-and-a-half hours behind Australian Eastern Standard Time.
To find out the current time in New Delhi, view the World Clock.
Dialling codes
India's country code is 91. For calls to India from Australia dial: 0011 + 91 + area code + telephone number For calls from India to Australia dial: 00 + 61 + area code + telephone number
For further information (eg. area codes) please visit the White Pages - international dialling codes.
Electricity
India’s power supply is 220 volts, 50Hz 1, 3 phases, generally 2, 3 and 2, 4 wires. The round two-pin plugs are the most common.
Weather
India's climate is tropical monsoon. There are four distinct seasons:
- Winter (January to February)
- Summer (March to May)
- Rainy south-western Monsoon (June to September)
- Post-monsoon (October to December)
For weather details in India, please visit the World Meteorological Organization.
Currency
Oanda currency converter
Indian monetary system consists of rupees (mostly 5, 10, 20, 50, 100, 500 and 1000 rupee currency notes) and paise (pronounced pay-say), which includes coins of 25 paise, 50 paise, 1 rupee and five rupee denominations. |
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Export Snapshot
'India: a sound wicket' This 'postcard' by Austrade's Chief Economist, Tim Harcourt, features a short article and key statistics. |
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OECD Guidelines for Multinational Enterprises
Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises
that provide voluntary principles and standards for responsible
business behaviour in a variety of areas, consistent with applicable
domestic laws. These Guidelines are endorsed and promoted by the
Australian Government. For more information, go to the ANCP website. |
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