Manufacturing and Trading in India

2 Introduction ADAM LIVERMORE Partner Chinaisre-positioningitselfintheglobalvaluechain–movingawayfromanexport-driveneconomy to a consumption driven one. Adding to this are the continuously risingwages and comparatively high social welfare costs that are pushing away foreign-owned manufacturing companies. Many companies are considering their options –whether to relocate their China-basedproductionunits or supplement existingoperationswithcheaper inputs sourced from lower-costmarkets inAsia–a strategy widely known as‘China plus one’. India, with its large consumer market and economic policies – promoting the development of manufacturing capabilities, looks strikingly similar to howChina looked 20 years back. India’s rapid infrastructure growth, improving business climate, along with a rich vein of product availability for global sourcing businesses – makes it an increasingly viable choice for manufacturing companies looking for their ‘China plus one’ in Asia. In this issue of India Briefing magazine, we discuss what are the benefits of choosing India as a business location – its market size, labor force, and tariff rates. Subsequently, we highlight relevant informationforcompanieslookingtorelocateordiversifytheirproductioninIndia’sspecialeconomic zones (SEZs) – thepermittedactivities in India’s SEZs, incentives available, key locations, andsourcing andprocurement considerations for rawmaterial andequipment. Further,wediscuss the steps and procedures for establishing an import-export business in India. Withour specializedbusiness intelligence, taxandcompliance, andmarket entry knowledgewithin India, Dezan Shira & Associates is well positioned to assist companies in their efforts to survey and establish their India operations, and take advantage of Asia’s second fastest growing economy. With kind regards, Adam Livermore Credits Publisher / Adam Livermore Managing Editor / Adam Pitman Editor / Vasundhara Rastogi Design / Belén Rodríguez Reference India Briefing and related titles are produced by Asia Briefing Ltd., a wholly owned subsidiary of Dezan Shira Group. Content is provided by Dezan Shira & Associates. No liability may be accepted for any of the contents of this publication. Readers are strongly advised to seek professional advice when actively looking to implement suggestions made within this publication. For queries regarding the content of this magazine, please contact: All materials and contents © 2018 Asia Briefing Ltd. Asia Briefing Ltd. Unit 507, 5/F, Chinachem Golden Plaza, 77 Mody Road, Tsim Sha Tsui East Kowloon, Hong Kong.