India is a world power that is requiring food security, but also a greater diversification of products. It therefore presents itself as an opportunity for imports.
India is an extremely attractive option for importing products, this due to the restrictions they impose on their natural resources but also for being an economy with a population of over 1.4 billion people and a growth of 8.5% in 2022, which has led it to be recognized as the 5th largest economy in the world.
It is a potential market for agri-food exports, because it is a country with low agricultural productivity, a deficient marketing chain, losses caused by environmental degradation, as well as a high demand due to its overpopulation.
Import and export of goods is governed by the Foreign Trade (Development and Regulation) Act, 1992 and the Export and Import Policies of India (EXIM). The Directorate General of Foreign Trade of India (DGFT, under the Ministry of Commerce and Industry, MoCI) is the main agency responsible for EXIM policies.
The DGFT issues clearance to exporters and monitors their corresponding obligations through a network of 38 regional offices, and establishes simple and transparent procedures that are easy to comply with and administer for efficient management of foreign trade, with the objective of enhancing the country's trade for economic growth and employment generation.
Prior to the EXIM, if you want to import you must register at the DGFT to obtain an Importer Exporter Code (CIE), there you must present the Permanent Account Number (PAN, identification number that helps to avoid tax evasion) or apply for it.
PAN applications are made through specially designated forms for individuals and foreign nationals. Form 49A is for Indian citizens and Form 49AA is for foreign nationals.
For this process, basic information such as name, address (both permanent and official), contact number, valid email address, parent's name and date of birth are required; in addition to providing relevant documents such as a photograph. There may be other requirements, as they differ from region to region.
Two passport size photographs along with your identification, this can be your Passport; Voter Identity Card; Driving License; Aadhaar Document (issued by the Indian Unique Identification Authority); or Bank Certificate with the original letter head from the bank branch with photograph and your bank account number).
Proof of residence, either Bank Statement or passbook; Credit Card; Water and Electricity Bill; Ration Letter; Passport; Voter's Identity Card; Driving License; Aadhaar Document; Employment Certificate; or Matriculation Certificate.
Copy of passport.
Copy of Indian Origin Card issued by the Government of India.
Copy of the Indian Foreign Citizen Card issued by the Government of India.
Copy of other national identification or citizenship number or identification number apostilled by the Indian embassy, high commission or consulate of the country you are in.
Copy of bank account statement in the country of residence.
Driving license.
Copy of the registration certificate issued by the foreigners registration office showing an address in India or Copy of the visa granted and a copy of the appointment letter or contract from the Indian company and the original certificate of address in India issued by the employer.
Copy of the Certificate of registration of incorporation in India.
Copy of the Certificate of registration issued in the country where you are, apostilled by the Indian embassy in the country where you are.
Copy of the Certificate of Registration issued in India or approval granted for setting up an office in India by the Indian authorities.
Upon submission of all the above documents, the PAN will be assigned to you within six to eight weeks. You can read more about the PAN, here.
After submitting your PAN and obtaining the CIE, declare the origin of the items you want to import, read on because we will now tell you about that.
The Harmonized System of Classification of Indian Commerce (HS-CCI) allows free importation of most goods without the need for special import licenses. However, some food products require a special permit or license.
Prohibited products: Wild animals, tallow and oils of animal origin, animal rennet or unprocessed ivory.
Restricted products: These can only be imported after obtaining an import license from the DGFT, including: seeds, plants, animals.
Channeled products: Certain procedures or specific methods of transportation must be complied with or seen through specific government agencies such as the State Trading Corporation. This category includes petroleum-based foods and bulk agricultural products (such as grains or vegetable oils).
Although India has liberalized its tariff and import policy, removing certain quantitative restrictions and reducing customs duties, they are still very high by international standards, and many import restrictions still exist.
The average tariff is around 20%, but agricultural products have higher tariffs, ranging from 10% to 300% ("peak tariff" of the country). Here is a detail of other tariffs for food products:
Sugar, wheat, coffee, garlic, raisins: 100% and higher.
Pepper and rice: Between 70% and 100%.
Peas, powdered milk, corn, some nuts and apples: Between 50% and 70%.
Oranges, lemons, grapes and pears: 40%.
Other agri-food products: 30%.
At Loads, we will assist you in this process, carrying out the best practices to ensure that the products you import arrive in India in perfect condition and in compliance with all requirements and regulations.
Regarding animal products, the OIE is an intergovernmental organization that seeks to fight animal diseases worldwide and is responsible for establishing sanitary standards for international trade in animals and animal products.
For example, there is the Terrestrial Code (mammals, birds, bees and bee products), which guarantees the sanitary safety of animal products and is responsible for sanitary rules applicable to international trade in animals and animal products and prevents the establishment of unjustified sanitary barriers.
If you want to import food products to India, we recommend that you analyze those that are most in demand: It is projected that due to the growth of its middle class there will be a significant impact on the demand for foods such as fruits, vegetables, edible oils, animal products, dairy or processed foods and snacks such as snacks.
And how to reach suppliers? At Loads, we have an extensive catalog with products with the highest quality standards from reliable suppliers, which will allow you to quote quickly and simply and secure your inventory. We also take care of the operational and logistics services that take care of the transportation of your order, during this process you will receive updated information until it arrives in your hands in India.
How to handle the logistical and transportation challenges of importing food products into India?
In India, about 95% of the country's trade by volume and 70% by value is moved by sea freight. On land, it has one of the largest road networks in the world, the National Highways with a total length of 66,590 km connecting state capitals, ports and major cities, so that the products you import can move efficiently and reach the places where there is the greatest demand.
If you still have doubts about importing to India, it is important to know that it is a market that offers a great opportunity, mainly because the market for imports of food products is small and growing. One of the big problems of the Indian market is that there are import barriers and distribution difficulties. However, by leaving this operation in the hands of Loads, you are only in charge of analyzing the areas with the highest demand (such as cities near the big cities, where the Indian consumer has greater purchasing power and curiosity to try new products) to position your products.
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