With the help of an experienced logistics partner, businesses and e-commerce retailers looking to expand into new markets should consider investing in trade with India. 

As a strong economy and burgeoning e-commerce market increase domestic competition for American businesses and e-retailers, savvy business owners may want to consider expanding into new markets to drive growth. Businesses and e-commerce sellers that do so will have a strategic advantage by getting their products in front of new consumers and developing an international presence for future operations. 

While the Trump Administration has used tariffs in trade negotiations around the world, trade is still strong between the United States and many global economic partners as those negotiations continue. This is especially true for American trade with India, where total goods trade expanded by 16.7% between December 2017 and November 2018. 

For businesses and e-commerce retailers, this means that India is a promising opportunity for further investment. However, developing an international footprint is easier said than done. Between international trade regulations, customs requirements, and logistical hurdles, small and mid-sized businesses can quickly be overwhelmed by operating in a new country. 

Thankfully, a third-party logistics partner (3PL) or integrated logistics service provider (ISP) can help. By leveraging industry experience and international contacts, the right logistics provider will be able to help you and your team make a mark — even in India. 

US–Indian Trade by the Numbers

According to the Office of the United States Trade Representative, trade between the U.S. and India is in good shape. In 2018, the trade of U.S. goods and services with India totaled approximately $142.1 billion. Exports came in at $58.9 billion and imports came in at $83.2 billion. This means that India is the U.S.’s 9th largest goods trading partner with $87.5 billion in two-way goods trade in 2018. 

To break down the numbers even further, India was the U.S.’s 13th largest goods export market in 2018 and 10th largest supplier of goods imports. Leading export categories include precious metal and stone, mineral fuels, aircraft, machinery, and optical and medical instructions. The top import categories were precious metals and stone, pharmaceuticals, machinery, mineral fuels, and vehicles.

Logistics Opportunities and Obstacles

Businesses and e-commerce retailers interested in developing a footprint in India have strategic advantages on their side. For example, the Indian middle class is growing rapidly, creating a new consumer class hungry for high-quality goods. Set to double to over half a billion people by 2025 according to the Brookings Institute, this expanding market is an ideal home for American manufactured products.

However, there are obstacles that businesses and e-commerce retailers will need to contend with. For instance, tariffs between the countries are underway as President Trump and Prime Minister Modi work through trade tensions. These tariffs only target certain products, however, meaning that many businesses and e-commerce retailers won’t be directly affected. 

Finding a Logistics Provider That Can Help

While enterprises and corporations may have the bandwidth to expand into new markets easily, small and mid-sized businesses likely don’t. This doesn’t mean that they shouldn’t think big, however. By partnering with a 3PL or ISP, these operations can leverage the experience of trusted logistics professionals to scale internationally.

With two-plus decades of experience in the shipping and logistics space, Primary Freight has the resources, infrastructure, and industry contacts that businesses and e-commerce retailers need to grow their operations internationally. Whether you’re looking for assistance with ocean freight or comprehensive integrated logistics solutions, our award-winning customer service team can help you access and succeed in new markets. 

If you’d like to learn more about how Primary Freight’s award-winning shipping services, contact us today at (800)-635-0013.