India - A Strong Market For More Exports Of Autoparts & Gear boxes (HSCode 870840)
34% More Exports to India for products under HS Code 870840:
As per the latest trade data available on Ekport, there were 34% more exports to India for HS Code 870840 which includes product like Gearboxes used in Automobile Vehicles such as cars, cabs, trucks etc. Exports to India for products under HS Code 870840 00 was USD 731.4 Million during Year 1 (Mar 2016 to Feb 2017) and it increased to USD 981.8 Million during Year 2 (Mar 2017 to Feb 2018).
Graph 1: Global Exports to India for HS Code 870840(GearBoxes).
The above graph shows a Year-on-Year comparison for monthly global exports to India for products under the HS Code 870840. It can be seen from the graph that every month the exports for Year 2 are more than the corresponding month of Year 1. This increase ranges from USD 3.9 Million to USD 45.9 Million and the highest increase(USD 45.9 Million) was noted for the month of December 2017 .There has been a noticeable trend towards more exports to India for Gear Boxes which fall under the HS Code 870840.
Top 5 Countries Doing More Exports to India for Gear Boxes under HS Code 870840:
The top countries exporting to India for products under HS Code 870840 are Japan(USD 243.1 Million), South Korea (USD 223.3 Million), USA(USD 89.3 Million), Germany(USD 82.0 Million) and China RP(USD 64.7 Million). During Year 2, these top 5 countries accounted for USD 702.4 Million out of a total of USD 981.8 Million exports to India for products under HS Code 870840.
Graph 2:Exports to India from top 5 Countries for HS Code 870840(Gearboxes)
From Graph 2 above, it can be seen that the exports to India in Year 2 for products under HS Code 870840 has increased from top 5 exporting countries,Japan and South Korea were the leading exporting countries to do More Exports to India for products under HS Code 870840.
Why World should focus on doing More Exports to India for Gearboxes (HS Code 870840)
Gearboxes(HS Code 870840) are used in the Automobile Industry and plays a vital role in the manufacturing of vehicles, as it a critical part of a vehicle for its functioning. The manufacturing of Gearboxes ( HS Code 870840) is not that strong in India to fulfill the rising demand, due to lack of infrastructure for manufacture process and low skilled manpower who are unable to design and construct grearboxes of International quality, for better quality and designed gearboxes India imports them from other countries.
India is the sixth largest Producer of Automobiles in the world with annual sales of 25 Million vehicles in 2017 as compared to 26 Million vehicles in 2016, there have been a growth of 1 Million vehicles as compared to the previous year which in fact is a significant one. India has four large auto manufacturing hubs across the country: Delhi-Gurgaon-Faridabad in the north, Mumbai-Pune-Nashik-Aurangabad in the west, Chennai- Bengaluru-Hosur in the south and Jamshedpur-Kolkata in the east. The Automobile sector contributes to 7.1 % of India's Gross Domestic Product (GDP) by volume and it is estimated that six million hybrid plus electric cars to be sold annually by the year 2020
Graph 3: Automobile production in India in the last 6 years
According to the statistics provided by the Society of Indian Automobile Manufacturers(SIAM) in graph 3, it has been observed that the production of all the vehicles i.e passenger vehicles, commercial vehicles, three wheelers, two wheelers kept on increasing from 2012 to 2018. In the year 2013-2014 the production was 4% higher than in 2012-2013. In 2014-2015 the production was 9% higher than 2014-2015, in 2015-2016 the production was 3% higher than 2014-2015, in 2016-2017 the production was 5% higher than in 2015-2016 and finally in 2017-2018 the production was 15% higher than 2016-2017, which clearly indicates that the production in the last year has seen maximum growth as compared to previous years and is a clear indication that need of gear boxes will increase year on year from now and require Countries to do More Exports to India of Gear Boxes(HS Code 870840).
What are the custom duties and taxes applicable for the HS Code 870840:
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 870840.
For products under HS Code 870840 the Basic Custom Duty(BCD), is 15%, in other duties Social Welfare Surcharge(SWS) is 10%of(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 28% 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): 15% of (100,000) = USD 15000
Social Welfare surcharge(SWS): 10% of (15000) = USD 1500
GST = 28% (AV+BCD+SWS): 18% of (100,000 + 15000 + 1500) = USD 32620
Total Amount after paying customs duty and GST: USD 149120
Who is Importing the products under HS Code 870840:
The products under HS Code 870840 are mainly imported in the cities like Pune, Haryana, Chennai, etc of India. Based on Ekport Lead Generator, some of the companies that import products under HS Code 870840 (Gearboxes) in Pune are: Bonfiglioli Transmissions Pvt. Ltd, Cyclo Transmissions Limited, Trans Power Equipments, Gear Boxes Pune, Electric Motors Pune, Knife Gate Valves PuneLimited in Haryana: Advanced Enterprises - Industrial Gearbox Manufacturer in Chennai: Chennai Bearing & Gear Box, SIEG.