resource guide india final

8/3/2019 Resource Guide India Final

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Inside IndiaA reerence guide.


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Welcome to India.

India at a Glance

Quick acts about India as a nation and culture.

FedEx in India

A look at the FedEx presence in India.

Understanding the India Marketplace

How the economic structures o India unction.

Regional Inormation

A broad overview o Indias unique regions.

Tips or Doing Business in India

Some useul advice on business practices in India.

Importing and Exporting

What you need to know beore shipping.

Tools to Help Your Business

A look at the various tools that FedEx oers shippers.

FedEx Shipping Services

An overview o the variety o shipping services FedEx oers.

India Shipping Checklist

A ew things to go over beore you start.

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Table oContents


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India is rapidly becomingan economic powerhouse,with a GDP thats expectedto grow by more than7 percent in the nextive years.

India at a GlancePractical business and shipping inormation or U.S. exporters establishing businessconnections in India:

Formal name

Republic o India

Capital

New Delhi

Population

1,095,351,995 (as o July 2006)

Language

English and Hindi, plus 17

other regional languages andhundreds o dialects

Weights and measures

Metric

Currency

Indian rupee (INR)

Major industries

Textiles, chemicals,

ood processing, steel,

transportation equipment,

cement, mining, petroleum,

machinery, sotware

Major trading partners

U.S., European Union, China,

United Arab Emirates

National ag

Time zone

GMT+5.5 (ve hours and 30

minutes ahead o Greenwich

Mean Time)

Administrative divisions

29 states

National holidays

Jan. 26 is Republic Day,

honoring the ounding o

the Republic o India.Aug. 14 is Independence Day.

Major exports

Textiles, jewelry, electronic

goods, health care products,

machinery, auto components

Major imports

Chemicals, electronic goods,

machinery, auto components


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Despite the logisticalchallenges o operatingin India such as complextax laws, congestedairports and outdatedroad networks FedEx

has been able to deliveroutstanding solutionsto India and U.S.-basedbusinesses.


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FedEx in India: The Future is BrightWe oer the most fights and thelargest ground network in India andwe look orward to even greatercoverage and eiciency in the uture.

The Indian government recently launched a number o projects, including the National Highways

Development Program, aimed at modernizing, expanding and integrating the countrys

transportation systems rom i ts expressways and railways to its airports and seaports. FedEx

and the companies that rely on our services are poised to benet rom better connectivity to and

rom regional hubs, aster transit times as a result o an increase in fights, more visibility

on shipments through the use o applications like FedEx InSight and other tracking capabilities,

and more standardized customs procedures.

Indias young population and growing middle class make it one o the worlds most attractive

marketplaces or U.S. exporters. To capitalize on these opportunities, FedEx oers a depth o

knowledge and expertise to help you establish and keep valuable connections with Indianenterprises and consumers.

FedEx rst began operations in India in 1984. During the past two decades, we have continued to

improve and increase our services to, rom and within India. We were the rst carrier to launch

an all-cargo fight rom India, and today we oer more fights to and rom India than any other

cargo company. We have also established the industrys most extensive air-to-ground network in

India, delivering to more than 4,000 Indian towns and cities using FedEx couriers and technology.

U.S.-based companies ship to India with FedEx because o our superior products and services and

unparalleled expertise in the region. FedEx is set apart by:

The most diversied portolio

o India-specic products and

services.

A signifcant and growing

sales presence in 35 o Indias

key cities.

The industrys greatest

number o all-cargo fights

rom the U.S. to India, and

rom India to the U.S., Europe

and Asia.

The frst all-cargo light

connecting India and China.

16 clearance locations

in India, which enable us

to move shipments more

quickly and eciently than

any other carrier.

Customs clearance in

Indian international airports

in 18 dierent languages.

A dedicated surace network

that connects 12 key cities

in northern, western and

southern India, reducing

reliance on commercial,

in-country line haul.


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Understanding the India MarketplaceIndia has one o the astest-growingeconomies in the world.

The countrys economic boom began in 1991 with the Indian governments introduction o the

Statement on Industrial Policy, which lowered tari rates and reduced government controls

on oreign trade and investment. Since that time, the Indian economy has grown steadily and

signicantly, and is expected to rise just as rapidly in years to come. In act, i Indias economy grows

at the rate many analysts predict, Indias gross domestic product (GDP) will pass Japans

in the next 25 years and Indias economy will become the second largest in the world by 2050.

Favorable demographics

coupled with rising income

levels are ueling growthacross many product

segments and industries in

India. One result o Indias

newound prosperity has been

the swelling o the countrys

middle class to more than

250 million, which in turn has

ueled demand or consumer

products such as televisions,

rerigerators, washing

machines and air conditioners.

Whats more, with 54 percent

o its population under 25,

India has a relatively youngpopulation ocused more

on spending than on saving.

India is one o the ew countries

where the labor orce is growing,

which also contributes to

the countrys economic

vitality. Indias large pool o

educated, English-speaking

proessionals has attracted

U.S. companies with the

promise o lower labor costs.

More and more countries

are outsourcing customerservice and technical support

jobs to India, as well

as jobs in biotechnology,

nanotechnology, telecom-

munications, shipbuilding

and aviation.

India is a member o a number

o regional and bilateral trade

agreements, as well as the

ollowing multilateral trade

agreements:

World Trade Organization

World Customs Organization

Organization or the

Prohibition o Chemical

Weapons

Montreal Protocol

Wassenaar Arrangement

Convention on International

Trade in Endangered Species

o Wild Flora and Fauna

Organization or Economic

Co-operation and Development

Did you know?

09


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DelhiHome to the national capital, New Delhi, Delhi is not only the

second largest city, but also the second-most avored oreign

direct investment (FDI) destination in the c ountry. Additionally, it is

home to a prosperous and ast-growing economy driven largely by

the services sector. The city eatures excellent physical, economic

and social inrastructure and is complemented by nearby industrial

areas such as Gurgaon, Faridabad and Noida. With Indias highestconcentration o rich and super rich households, Delhi is the

largest consumption center or consumer goods and cars in India.

The city also has the potential or developing private health care

or domestic and international markets.

Population

11.2 million (2006 estimate)

Area

1,483 sq. km.

Literacy rate

81.67 percentGross State Domestic

Product (GSDP)

17.8 billion (US$)

Per capita income

1,099 (US$)

Domestic airport

Palam

International airport

Indira Gandhi International

Airport

Retailing and leisure

Tourism

Apparels

Investment

Health care

Biotech

IT/ITES

Business Opportunities

and Key Industries

Key Economic

Indicators

MumbaiFormerly known as Bombay, Mumbai is the largest city with the

largest economy in India and is the countrys principal nancial

services and entertainment center. Mumbai is also Indias most

industrialized city, with a strong presence o petrochemical,

automobile, inormation technology (IT), inormation technology

enabled services (ITES) and textile rms. It is not surprising,

then, that it is the most attractive investment destination in thecountry, accounting or 40 percent o all exports. Mumbai is home

to the countrys two largest stock exchanges, a large network

o proessional education institutions and many domestic and

oreign banks, including the Reserve Bank o India.

Population


Area

437.71 sq. km.

Literacy rate

86 percentInternational airport

Chatrapati Shivaji Terminus

Notable Contributions

Mumbai contributes 10 percent

o Indias actory employment,

40 percent o income tax

collections, 60 percent o

customs duty collections, 20

percent o central excise tax

collections, 40 percent o

oreign trade and 40 billion

rupees (US$9 billion) in

corporate taxes annually.

Chemicals, petrochemicals,

oil and gas

Pharmaceuticals

Automobiles and

components

Engineering

Financial servicesIT/ITES

Textiles

Tourism

Leisure and entertainment

Biotechnology


and Key Industries

Key Economic

Indicators

Regional InormationA successul business partnershipin India relies on understanding thekey economic regions: Mumbai,Delhi, Bangalore, Kolkata, Chennaiand Hyderabad.

Regional Map o India

Delhi

Mumbai

Hyderabad

Kolkata

Chennai

Bangalore


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ChennaiFormerly known as Madras, Chennai is Indias th-largest

metropolitan city and the capital o the state o Tamil Nadu, one

o the rst Indian states to articulate ITES and biotech policies.

Chennai boasts the countrys largest IT park and astest growth

rate in sotware exports. It has also gained a reputation as the

Detroit o India due to the many automakers, domestic and

oreign, focking to the area. Chennai supplies uninterruptedquality power to industries at low tari rates (it is the landing

point or two submarine cables) and eatures the countrys

highest value addition in industries and greatest number o

actories and export-oriented units (EOUs).

KolkataKolkata, ormerly known as Calcutta, is the countrys ourth-largest

city and the main commercial capital or eastern and northeastern

India. It is the headquarters or a number o oreign and Indian

rms, banks and nancial institutions; as such, it oers the

countrys largest talent pool and low operations cost. Kolkata

also eatures surplus electricity generation capacity and close

proximity to mineral resources and international marketsthrough its ports.

HyderabadRanked the No. 1 Indian ITES destination, Hyderabad is Indias

sixth-largest metropolis and the 41st-largest metropolitan

area in the world. It is home to several world-class institutions

with oreign collaborations, and accounts or 23 percent o

the countrys sotware proessionals. Hyderabad is also the

largest exporter o bulk drugs in India. The city was the rst

to develop a data protection and consumer act, and the rst tohave a comprehensive IT/ITES policy. Hyderabad also oers

surplus energy.

BangaloreBangalore is Indias third-largest city and has the astest-growing

market. Widely known as the Silicon Valley o India, the city

eatures the highest share o IT exports and largest number o

biotech companies o any Indian city. As o 2001, Bangalore

also possessed the countrys third-highest share o FDI. With

the presence o exceptional research organizations and renowned

academic institutions, Bangalore oers the countrys highestliteracy rate and a high-quality talent pool. The city also boasts

strong government participation and excellent availability o

natural resources.

Electronics

Agriculture

Leather

IT/ITES

Tourism

Apparel

AeronauticsMining and mineral-based

products

Research and Development

(R&D)

Biotech

Sotware development


and Key Industries

Population


Area

476.66 sq. km.

Literacy rate

83 percent


Bangalore International Airport

Key Economic

Indicators

Electronics

Agriculture

Leather

IT/ITES

Tourism

Textiles

PharmaceuticalMining and mineral-based

products

R&D


and Key Industries

Population


Area

260 sq. km.

Literacy rate

80 percent


Hyderabad International Airport

Key Economic

Indicators

Chemicals, petrochemicals,

oil and gas

Agriculture

Iron and steel

Leather

IT/ITES

Tourism


and Key Industries

Population


Area

185 sq. km.

Literacy rate

80.86 percent

Domestic airport

Bagdogra


Kolkata

Key Economic

Indicators

Cotton textile, hosiery, and

readymade garments

Automobile and components

Agriculture

Leather

IT/ITES

TourismEngineering

Chemicals and

petrochemicals

Mining and mineral-based

products

R&D

Biotech

Sotware development


and Key Industries

Population


Area

1,180 sq. km.

Literacy rate

80.14 percent


Chennai International Airport

Key Economic

Indicators


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Business Etiquette General Behavior oIndian Businesses

Indian society operates withina ramework o strict hierarchy

and etiquette. When entering

a meeting room, greet the

companys most senior gure

rst. Make sure to address

associates by ormal titles,

such as Mr., Mrs., Dr. and Pro.

It is polite to shake hands with

male associates, though Indian

men generally do not shake

hands with or touch women

as a sign o respect; wait or

emale associates in India to

extend their hands to you.

In India, making importantbusiness decisions can

be a slow and thoughtul

process. Indians are generally

inquisitive and ond o

negotiations, so patience

and fexibility will increase

your chances or success.

Visit BusinessFacilities

Meetings Dosand Donts

By visiting your Indianassociates, you can help

build rapport and credibility.

Make sure to talk to important

customers rst, dress well

and conservatively and

dont orget to carry plenty o

business cards. As a courtesy,

you may want to have one

side o your business cards

translated into Hindi.

Arrange business meetingswith Indian associates well

in advance, ideally or late

morning or early aternoon.

Avoid scheduling meetings on

or near national holidays, and i

lunch or dinner will be served,

avoid ordering bee and pork.

Always be punctual and make

eye contact, especially with

emale associates. You may

also want to brush up on the

latest cricket scores, business

news and lms theyre easy

ice breakers.

Tips or DoingBusiness in India

Notes onCommunicating

English is the language obusiness in India, but keep

in mind that the levels o

writing skills may vary. You

may also want to amiliarize

yoursel with traditional Indian

numbering. For example,

100,000 = 1 Lakh and 100

Lakhs (10 million) = 1 Crore.


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Courier (OBC) or Express

Mode EntryThese shipments are generally

non-commercial packages

such as documents, samples

and gits valued up to US$200,

and dutiable shipments valued

up to US$1,750. This method

is generally aster than ormal

entry, but is also highly restrictive

with regulations on certain

items, commodities, values

and weights.

Cargo or Formal Entry

This mode o entry is requiredor shipments valued at

US$1,750 or more, as well as

or all shipments meant or 100

percent export-oriented units.

India has several cl earance locations. Courier shipments valued up to $1,750 are cleared through

Mumbai and New Delhi. Cargo shipments are cleared through one o the ollowing 16 locations:

Ahmedabad, Coimbatore, Jaipur, Mumbai, Bangalore, Goa, Kolkata, New Delhi, Chennai,

Hyderabad, Ludhiana, Pune, Cochin, Indore, Moradabad, Varanasi.

Did you know?

Importing and ExportingPreparing your shipment involvesunderstanding the two modeso clearance entry.

The ollowing pages explain the various key documents and requirements or exporting goods into

India rom the U.S. and importing goods into the U.S. rom India. Note: Based on the type o goods

you are shipping and the details o your shipment, you may need additional documentation. VisitFedEx Global Trade Manager or more inormation.

There are two clearance modes or exporting and importing to India. Each entry method has unique

requirements, so keep these classications in mind when preparing your shipment: 17
http://www.fedex.com/gtm/international/http://www.fedex.com/gtm/international/http://www.fedex.com/gtm/international/http://www.fedex.com/gtm/international/


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Import and Export DocumentsProviding appropriate and accuratedocumentation with your shipmentwill help prevent a delay at customs.

1. Commercial Invoice

A Commercial Invoice is

required or the majority o

nondocument shipments toIndia. It is the most common

customs orm.

2. Certifcate o Origin

The type o commodity being

exported will determine i a

Certicate o Origin is required

with your shipment. Visit

FedEx Global Trade Manager

or details.

3. Packing List

You will likely need to complete

a packing list, especially or

large or multiple-package

shipments. The packing listdetails the total number o

packages, as well as the weight

and contents by package or

your shipment.

4. Shippers Export

Declaration (SED)

You must submit an SED i

you can answer yes to anyo the ollowing questions

about the commodity items

in your shipment:

Does the total customs value

o any single classication

in your shipment exceed

US$2,500?

Is an export license or permit

required? Most commodities

dont require an export

license or permit. For

inormation on export

licenses, go to

www.commerce.gov.Is your shipment subject to

the International Trac and

Arms Regulations(ITAR)

but exempt rom license

requirements?

Does your shipment contain

rough diamonds alling

under HTS 7102.10, 7102.21,

and 7102.31?

5. Bill o Entry

For courier shipments, a

Courier Bill o Entry must

be led at customs. Cargo

shipments require a Formal

Bill o Entry, which must be

led by an authorized customs

house agent (CHA). The

recipient must appoint their

own broker or utilize a FedEx

broker or clearance.

Exporting to India

First, no one can import or export goods without obtaining an Importer-Exporter Code (IEC) along

with a Business Identication Number (BIN) rom the Regional Licensing Authority. In addition to

a FedEx International Air Waybill, the ollowing ve documents and certications are most

commonly required or sending shipments to India rom the U.S.

Importing rom India

As when exporting to India, there are two modes o clearance or importing rom India, courier and

cargo. India-based exporters must also complete the ollowing: Commercial Invoice, Certicate o

Origin, Packing List, Shippers Letter o Instruction (SLI), Sellers Declaration Form (SDF), Guaranteed

Remittance Form (GR) or Exchange Control Declaration (ECD).

When importing items into the U.S. with a declared value exceeding US$2,000, you must have

an IRS Employer Identication Number (EIN) or a Social Security Number (SSN) on le with

U.S. Customs and Border Protection (CBP). VisitFedEx Global Trade Manager or additional

documentation requirements unique to your shipment.

Note: The U.S. Census Bureau

updates SED regulations and

requirements requently. You can

keep track o these updates andnd out i they aect you by visiting

the SED section oedex.com.

All SEDs or FedEx International

Priority

shipments must be led

electronically with the Automated

Export System (AES). You will need

to either sel-le your electronic

SED atwww.aesdirect.govor

designate your FedEx agentto

le on your behal.

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http://www.fedex.com/gtm/international/http://www.fedex.com/gtm/international/http://www.commerce.gov/http://www.fedex.com/gtm/international/http://www.fedex.com/gtm/international/http://www.fedex.com/http://www.fedex.com/http://www.fedex.com/http://www.aesdirect.gov/http://www.aesdirect.gov/http://www.fedex.com/http://www.fedex.com/http://www.fedex.com/http://www.fedex.com/http://www.aesdirect.gov/http://www.commerce.gov/http://www.fedex.com/gtm/international/http://www.fedex.com/gtm/international/


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Estimate Dutiesand Taxes

Locate InternationalDocuments

Denied-PartyScreening

Universal CurrencyConverter

Metric Converter

Get an estimate o the dutiesand taxes you can expect

to pay by entering the details

o your shipment atFedEx

Global Trade Manager.

Provide as much detail as

possible and try to avoid

underestimated duties and

taxes. For more inormation

on duties and taxes, go to

edex.comand consult the

FedEx Global Trade Manager.

Find and print copies o thedocuments that must

accompany your shipment

to India at FedEx Global

Trade Manager. This online

resource will identiy which

documents you need based on

the details o your shipment.

Identiy individuals, companiesand other entities that have

had their U.S. export privileges

revoked or limited by the U.S.

government, or with whom

U.S. parties are prohibited rom

doing business, by utilizing this

searchable database.

Get accurate currency exchangerates by using this daily-updated,

interactive calculator.

Convert measurements tothe Metric System with this

handy converter.

Worldwide Holidays

Plan your shipments arrivaldate so that it does not confict

with important observed

holidays in India by accessing

this simple calendar.

Tools to HelpYour BusinessOnce you have gathered the preliminary inormation and reviewed the key documents and

certications you need to ship to India (i.e., the Commercial Invoice, Certicate o Origin,Packing List, Shippers Export Declaration and Bill o Entry), youre ready to process your

shipping label. You can do so quickly and easily atFedEx Ship Manager at edex.com.

FedEx provides a number o additional tools to help prepare your shipment to India, including

the ollowing online resources that enable you to:

All these tools can be located on the FedEx international home page. Here you can quickly access all

the international tools.

edex.com/us/international

Getting to the Resources
http://www.fedex.com/gtm/international/http://www.fedex.com/gtm/international/http://www.fedex.com/gtm/international/http://www.fedex.com/http://www.fedex.com/gtm/international/http://www.fedex.com/gtm/international/http://www.fedex.com/gtm/international/http://www.fedex.com/us/solutions/software/http://www.fedex.com/us/solutions/software/http://www.fedex.com/us/solutions/software/http://www.fedex.com/http://www.fedex.com/us/internationalhttp://www.fedex.com/us/internationalhttp://www.fedex.com/gtm/international/http://www.fedex.com/gtm/international/http://www.fedex.com/gtm/international/http://www.fedex.com/http://www.fedex.com/gtm/international/http://www.fedex.com/gtm/international/http://www.fedex.com/http://www.fedex.com/us/solutions/software/


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Delivery Speed Service Description

Fastest

Delivery within hours between

major cities, based on fight

availability

FedEx International

Next FlightAvailable 24 hours a day, 7 days a week, 365 days a y ear.

Door-to-door customs clearance.

1 - 3 business days1 FedEx International Priority Time-denite delivery.

Monday-Friday service or shipments 150 lbs. or less.Saturday service available to select destinations.


1 - 4 business days1 FedEx International Priority

DirectDistribution Monday-Friday service or consolidated shipments.


2 - 5 business days1 FedEx International

EconomyMonday-Friday service or shipments 150 lbs. or less.


1 - 4 business days1 FedEx International Priority

Freight

Monday-Friday service or palletized reight more

than 150 lbs.


Advance conrmation required.

Within 5 business days 1 FedEx International

Economy Freight

Monday-Friday service or palletized reight more

than 150 lbs.


Advance conrmation required.

FedEx Shipping ServicesWe continue to oer a variety ohigh-quality shipping services tomove your business with India.

1Typical delivery times to major cities. Check transit times specic to your shipment destinations.

For more inormation on our shipping services to and rom India, go to edex.com.

S C
http://www.fedex.com/http://www.fedex.com/


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Shipping to India ChecklistA ew things to go overbeore you start.

With FedEx, shipping to and rom India is ast, reliable and easy. Reerence

this helpul checklist when preparing your next international shipment. Go to

edex.comand FedEx Global Trade Manager or more details.

NOTE: I your shipment contains only paper documents (printed or typed communications with no monetary value),you will need only your FedEx International Air Waybill or FedEx Express shipments.

Prepare your documents or shipping.

Include ull contact inormation or the shipper and recipient on all documents.

The most common documents and certications or shipping to India rom the U.S. are:

Certicate o OriginCommercial Invoice

Shippers Export Declaration (SED)

Bill o Entry

Packing list

Ensure your inormation is accurate and consistent across all required documents.

Underestimated duties and tax calculations may result in delays and additional costs.

Applicable to some orms include the correct Harmonized Tari Systems Number.

What is the item (such as a our-slot electric toaster or a queen-size duvet cover)?

What materials is the item made o (such as glass, 100% cotton, steel)?

What is the items intended use?

What are the items parts or serial numbers?

What is the items value, per unit and in total?

Be sure that the declared value or customs on the Commercial Invoice is accurate.

Speciy the country o original manuacture or each item in your shipment.

Sign and date your documents.

Record your FedEx tracking number.

Notes

Easily process your shipments online atedex.com.You can nd the correct orms atthe FedEx International Resource Center.

FedEx

Global Trade Manager can be ound at edex.com/gtm/international

Utilize Our Online Resources
http://www.fedex.com/http://www.fedex.com/gtm/international/http://www.fedex.com/http://www.fedex.com/http://www.fedex.com/us/international/irc/http://www.fedex.com/gtm/international/http://www.fedex.com/gtm/international/http://www.fedex.com/us/international/irc/http://www.fedex.com/http://www.fedex.com/gtm/international/http://www.fedex.com/