India - a growing export market for Switches, Control and Switchgear (HSCode 853650)
20% More Exports to India for products under HS Code 853650:
As per the latest trade data available on Ekport, there were 20% more exports to India for HS Code 853650 which includes products like Switches, Plastic Switches, Control and Switchgear etc. Exports to India for products under HS Code 853650 was USD 180.2 Million during Year 1 (Mar 2016 to Feb 2017) and it increased to USD 216.0 Million during Year 2 (Mar 2017 to Feb 2018).
Graph 1: Global Exports to India for HS Code 853650(Switches,Plastic Switches, Control & Switchgear)
The above graph shows a Year-on-Year comparison for monthly global exports to India for products under the HS Code 853650. It can be seen from the graph that almost every month the exports for Year 2 are more than the corresponding month of Year 1 except for March .This increase is more prominent especially for the last 5 months (Oct, Nov, Dec, Jan and Feb). This indicates that there has been a noticeable trend towards more exports to India for Switches and Switchgears.
Indian Trade Classification for products under HS Code 853650:
As per the international Harmonized System, Switches, Plastic Switches and Control & Switchgear categorized under HS Code 853650 for international trade. For the purpose of local Indian regulation, tax, custom duty and policy enforcement, Indian authority further bifurcates / classifies the products under HS Code 853650 using an 8-digit ITC code. For example:Control and switchgear (ITC code 853650 10), Other switches of plastic (ITC code 853650 20), and other equipments falling under HS Code 853650 (ITC Code 853650 90).
Top 5 Countries Doing More Exports to India for products under HS Code 853650:
The top countries exporting to India for HS Code 853650 are China (USD 32.7Million), Germany (USD 28.9 Million), South Korea (USD 23.6 Million), Japan(USD 23.2 Million), USA(USD 17 Million). During Year 2, these top 5 countries accounted for USD 125.4 Million out of a total of USD 216 Million exports to India for products under HS Code 853650.
Graph 2:Exports to India from top 5 Countries for HS Code 853650 (Switches, Plastic Switches, Control & Switchgear)
From Graph 2 above, it can be seen that the exports to India in Year 2 for products under HS Code 853650 has increased from top 5 exporting countries,China and Germany were the leading exporting countries to do More Exports to India for products under HS Code 853650. Though China and Germany are the leading exporting countries but we cannot neglect the fact that countries like south Korea and Japan are not way behind, and also the tensions between China and India recently hints other countries to have More Exports to India.
Why Korea and other countries should have More Exports to India for products under HS Code 853650.
Graph3: Percentage Increase in Exports to India for HS Code 853650 (Switches, Plastic Switches, Control & Switchgear) .
Graph3 shows the Percentage Increase in Exports of products under HS Code 853650 to India for the top 5 exporting countries. China being the leader of exporting the above HS Code had a growth of 35% USD (USD 8.4 Million), Germany had a growth of 26% (USD 5.9 Million), South korea had a growth of 30% (USD 5.4 Million), Japan had a growth of 6%(USD 1.4 Million) and USA had a growth of 24% (USD 3.3 Million) .Korea’s exports for products under HS Code 853650 were decreasing till Year1 and it was the fourth largest exporter for products under HS Code 853650 in Year1, but 30% increase in exports of products under Hs Code 853650 in Year2 brought South Korea inching closer to become the leader and became the third largest country to export products under HS Code 853650 which clearly indicates that South Korea is looking to do more exports to India and taking the right steps in this direction
The Indian Electric Equipment has shown excellent sigh of growth in past few years, the major growth drivers are cables and switchgear market. The LV switchgear market is further expected to grow at a CAGR of 6.1 per cent during 2016-2020 and is expected to reach 76 Billion by 2020. The growth in residential and commercial areas, with the modern approach of smart home and smart building using the principle of automation and also the implementation of Solar Panels for generation of Solar energy has triggered the imports of products under HS Code 853650(Switches. Plastic Switches and switchgears.Currently in India the manufacturing of products under HS Code 853650 is not upto the demand shown by the Indian consumer and also for the fact that with the concept of modernisation and in the world of show off, many residential as well as commercial space, demand for high quality and branded goods.While the overall domestic market growth was decent enough but in was not sufficient enough to fulfill the expectations of the consumers. The electronics market will continue its growth trajectory given the aggressive reforms initiated by the government through programmes such as Power for All, Make in India, the Integrated Power Development Scheme, Housing for All and the Deendayal Upadhayaya Gram Jyoti Yojana. He said, “The overall impetus given to the T&D will in turn drive the demand of products under HS Code 853650 and also South Korea being one of the largest exporter of consumer electronic goods, should certainly take the opportunity of the fact that the things between India and China are smooth in recent time and start doing more Exports to India for products under HS Code 853650, as seen the analysis above and the amount of growth expected in near future for that space.
What are the custom duties and taxes applicable for products undert HS Code 853650:
The import customs and duties play a major role for exporters to export their products globally, cause 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. To solve this problem we provide with the custom duties and taxes applicable for products under HS Code 853650.For products under HS Code 853650, the Basic Custom Duty(BCD) is 10% and Social Welfare Surcharge is 10%(BCD).The indirect tax, known as GST(Goods & Services Tax) will be levied in a similar way it is applicable for all other domestic goods in India. Currently the GST rate is 18% of (AV+BCD+SWS) where AV= Assessed Value.
For example, if the product’s Assessed Value (AV) is USD 100,000.
Basic Customs Duty (BCD): 10% of (100000) = USD 10000
Social Welfare Surcharge (SWS): 10% of (BCD) = USD 1000
GST = 18% (AV+BCD+SWS): 18% of (100,000 + 10000 + 1000) = USD19980
Total Amount after paying customs duty and GST: USD 130,980
Who is Importing the products under HS Code 853650:
The products under HS Code 853650 are mainly imported in the cities like Bangalore,Mumbai, Delhi, Chennai of India. Based on Ekport Lead Generator, some of the companies that import products under HS Code 853650 (Switches, Plastic Switches, Control & Switchgear) in Bangalore are:S J Switchgears Private Limited,Integral Systems And Components Private Limited, Legrand, in Mumbai: Atlas Electricals, Stanley Switchgear Products, Cpl Switches Pvt Ltd and in Delhi: Bentex Control & Switch Gear Company,Amax Electrical Industries, Adhunik Switchgears Pvt. Ltd.