European Countries doing more exports of pumps (HSCode 841381) to India
10% More exports to India for pumps (HS Code 841381
As per the trade data available on Ekport, there was 10% more exports to India for HS Code 841381 which includes pumps that are used in industries like agriculture, industrial, construction sewage industry etc.Products under under HS Code 841381 contains pumps like Gas Pumps, Liquid elevators, Water Pumps designed with axial and mixed flow. Exports to India for HS Code 841381 was USD 153.8 Million during Year 1 (Mar 2016-Feb 2017) and it increased to USD 169.4 Million in Year 2 (Mar 2017-Feb 2018)
Graph1: Global Exports to India for HS Code 841381(pumps) in USD Million.
The above chart depicts the year-on year comparison for global exports to India for HS Code 841381 during Year 1 (Mar 2016- Feb 2017) and Year 2 (Mar 2017 Feb 2018). From Graph1 it can be seen that exports to India have remained steady with variable increases in Year 2 in comparison to Year 1, witnessing growth of over 40% in the months of July, December and February. Sustainable increase in exports of pumps to to India is that domestic manufacturing of pumps includes high-intensive capital costs and lack of technology advancement meet global standards. The pump industry in India is fragmented as margins are thinner, controlled by the unorganised sector which consists of 5,000-6,000 small scale Indian manufacturers(SSI) of pumps with a handful players from the organised sector. As per estimates pumps, present in India with Indian Standards Institution (ISI) mark are often sticked on without requisite certification affects product quality. Booming agriculture sector, growing economy and rapid industrialisation have changed the pump industry. Population explosion and depleting per capita water availability in India has termed India as a “Water Stressed Nation”. Water crisis in India is driving demand for water pumps as erratic rain patterns and dependence on groundwater for irrigation increases as India fundamentally lacks water storage capacity. Prime Minister Narendra Modi’s project of “smart cities“ will drive demand for water and industrial pumps as infrastructural development projects kick-off. According to industry experts, demand for water pumps, other pumps used in various industries is expected to grow around compounded annual growth rate (CAGR) of 13% between 2015-2020.
Indian Trade Classification for products under HS Code 841381
As per the International Harmonized System, for HS Code 841381 which includes pumps that are used in industries like agriculture, industrial, construction sewage industry etc. For the purpose of local Indian regulation, tax, custom duty and policy enforcement, Indian authority further bifurcates / classifies the products under HS Code 8141381 using an 8-digit ITC Code. For example, Gas Pumps (ITC Code 841381 10), Hydraulic ram (ITC Code 841381 20), Vertical water pump designed with axial and mixed flow (ITC Code 841381 30), Liquid Elevators (ITC Code 841382 00) and products which are not classified are clubbed as “other” (ITC Code 841381 90). These HS Codes together amounted to USD 169.4 Million worth of India’s Imports during Year 2 which indicates a strong competitive demand for products under HS Code 841381 in India.
Top 5 Countries doing more exports to India for HS Code 841381
Steady demand coupled with lack of technology advancement has opened opportunities for many new and existing exporting countries to make their presence felt with more exports to India. The top 5 countries that do more exports to India for HS Code 841381 are Germany (USD 28.3 Million) China (USD 27.7 Million), Japan (USD 24 Million), Romania (USD 22.7 Million) and USA (USD 18.3 Million) . The collective amount of exports from the top 5 countries is USD 121 Million which is 71% of total exports to India in year 2 alone. Netherlands is one of the top exporters for this product, is increasing its exports to India at one of the fastest rates compared to new exporters to India.
Countries exporting products under HS Code 841381 for
Graph2: Exports to India for HS Code 841381 (pumps) by countries with Countries exporting products under HS Code 841381 for >USD 200 cost per unit
At Ekport, we have analysed countries like Austria, who have done more than USD 500K exports to India for HS Code 841381 in Year 1, yet have significantly increased their exports during Year 2. From Graph2 we have observed that countries like Austria, Spain, Thailand and Taiwan products under HS Code 841381 are priced below USD 200 dollars, yet they have managed to significantly increase their exports in Year 2. This trend shows that the pump industry is not price driven and sensitive, each exporting country has found a niche for themselves and the collective increase in exports for Year 2 in comparison to Year 1 stood USD 7.68 Million. Spain’s increase in exports was 110% and Thailand was 111%, which was the most significant increases among its peer group who export products below USD 200 Dollars.
Graph3: Exports to India for HS Code 841381 (pumps) by countries with >USD 200 cost per unit products (in USD Million).
From Graph3 we have observed that countries like France, Mexico, UK and Switzerland products are priced above USD 200 Dollars for HS Code 841381 ,yet they have managed to significantly increase their exports in Year 2. This trend shows that the pump industry and products related under HS Code 841381 are not price driven and sensitive, each exporting country has found a niche for themselves and the collective increase in exports for Year 2 in comparison to Year 1 stood USD 7.38 Million. Mexico’s increase in exports was a whopping 1309% and Netherlands was 245%, which was the most significant increases among its peer group who export products above USD 200 Dollars. Products from Netherlands are renowned for their superior quality all over the world. Netherlands plays a significant role in exports of pumps to India and has established strong local partnerships in India.Robust economy and thriving infrastructural development projects are driving demand for products under HS Code 841381. DP Holland Pumps have a local partnership from Mechzephyr Engineering from Karnataka, Rodelta Pumps from Netherlands have been acquired by Kirloskar Brothers one of the pioneers of the pump industry in India and Weir Group have local partnership with Summit Technodyne Private Limited from Mumbai for their GEHO® PD pumps which are cost effective and consumers less energy. Government of India initiative to reduce the use of diesel operated pumps and opting for solar pumps will help in less consumption of electricity and carbon emissions. Members of Holland Pomp Group like Grundfos and Weir Minerals are actively in India, operating solely or have formed local partnerships with Indian companies.Dutch pumps are technology advanced they are energy efficient intelligent pumps which can be controlled remotelessly. National Energy Efficient Agriculture Pumps Programme has been launched by the Ministry of Power to cater for agriculture pumps as there is frequent breakdown of power and the pumps which are already placed have become obsolete consuming more energy and pollute the area. This initiative will help in installation of energy efficient intelligent pumps which can be controlled wirelessly. Government of Maharashtra plans to replace 4 Million pumps with energy efficient pumps in the agricultural sector. Though it is giving subsidies on electricity to farmers, Energy Minister Chandrashekhar Bawankule of Maharashtra has said that energy efficient be imported as mentioned many local manufacturers stick the ISI mark without adequate certification. Government of India has taken initiatives such as Solar and energy efficient pumps which will drive demand in India as local players are unable to cater its demand. Member companies of Holland Pomp Group and other manufactures shall connect with strong Indian partners/distributors to seek this massive potential to serve stronger ties with Indian pump distributor/dealers and more exports to India.
What are the duties and taxes applicable for products under HS Code 841381
The import customs and duties play a major role for exporters to export their products globally, because at the end, the final price of the product with duties and taxes decide whether the product is affordable for the target audience or not. For HS Code 730900 the Basic Custom Duty (BCD) is 7.5%. The indirect tax, known as Goods & Services Tax (GST) will be levied in a similar way it is applicable for all other domestic goods in India. Currently the GST rate is 28% of (AV+BCD+SCD) where AV= Assessed Value
For example, if the product’s Assessed Value (AV) is USD 100,000.
Basic Customs Duty (BCD) 7.5% of (AV) = USD 7,500
Special Customs Duty (SCD) 10% of (BCD) = USD 750
GST = 18% (AV+BCD+SCD) 28% of (100,000 + 7,500 + 750) = USD 138,560
Total Amount after paying customs duty and GST will be USD 138,560 and the total effective duty applicable on products under HS Code 841381 is 38.56%.
Who is Importing products under HS Code 841381?
As per Ekport lead generator companies that import products under HS Code 841381 are Petece Enviro Engineers from Tamil Nadu, Goma Engineering Private Limited from Mumbai, Super Platers from Tamil Nadu, Cryo Corp from Mumbai, Minimax Pumps Private Limited from Nashik, Competent Engineers from New Delhi, Vino Technical Services from Tamil Nadu and netzsch pumps & systems from Mumbai are some of India’s major importers/buyers in India.