Australian exports of citrus and other horticulture produce to India set to grow

Citrus exports from Australia to India are expected to boom following the trade deal – from 2019 –21, Australian growers exported more than $18 million of oranges and mandarins to India. This rates India as a key market for Australian horticulture exports.

Australian Fresh Produce Alliance CEO, Michael Rogers is upbeat about the trade deal and said: “The opportunities presented by the agreement will enable a number of existing exporters, like those in the citrus industry, to capitalise immediately.”

INTO INDIA has advocated setting up some form of horticulture centre in India for knowledge sharing, skills training and more – good timing now!

The interim agreement will see tariff elimination over 7 years on a variety of Australian horticulture products including blueberries, avocados, onion, cherries, asparagus, lettuce and celery. Other significant gains for the sector include an immediate halving of the tariff within the tariff rate quota for oranges and mandarins.

Despite the interruptions caused by the COVID19 pandemic, Australian horticulture exports continue to grow, with exports in 2021 reaching $2.65 billion.

Future growth of horticulture exports to India is definitely on the way!

Click here for the AFPA Media Statement:

http://www.freshproduce.org.au/media-releases/india-interim-agreement-is-a-fruitful-opportunity-for-australian-growers/

Agribusiness and horticulture big winners in India-Australia trade deal

The Australia-India Economic Cooperation and Trade Agreement signed on 2 April has some big winners for Aussie agribusiness:

Sheep meat tariffs of 30 per cent will be eliminated on entry into force, providing a boost for Australian exports that already command nearly 20 per cent of India’s market

Wool will have the current 2.5 per cent tariffs eliminated on entry into force, supporting Australia’s second-largest market for wool products.

Tariffs on wine with a minimum import price of US$5 per bottle will be reduced from 150 per cent to 100 per cent on entry into force and subsequently to 50 per cent over 10 years (based on Indian wholesale price index for wine).

Tariffs on wine bottles with minimum import price of US$15 will be reduced from 150 per cent to 75 per cent on entry into force and subsequently to 25 per cent over 10 years (based on Indian wholesale price index for wine).

Tariffs up to 30 per cent on avocados, onions, broad, kidney and adzuki beans, cherries, shelled pistachios, macadamias, cashews in-shell, blueberries, raspberries, blackberries, currants will be eliminated over seven years.

Tariffs on almonds, lentils, oranges, mandarins, pears, apricots and strawberries will be reduced, improving opportunities for Australia’s horticulture industry to supply India’s growing food demand.

India-Australia trade deal – a handy list of features

Indian Commerce Minister Piyush Goyal is negotiating multiple trade deals

Benefits of AI Economic Cooperation and Trade Agreement include:

  • Sheep meat tariffs of 30 per cent will be eliminated on entry into force, providing a boost for Australian exports that already command nearly 20 per cent of India’s market
  • Wool will have the current 2.5 per cent tariffs eliminated on entry into force, supporting Australia’s second-largest market for wool products.
  • Tariffs on wine with a minimum import price of US$5 per bottle will be reduced from 150 per cent to 100 per cent on entry into force and subsequently to 50 per cent over 10 years (based on Indian wholesale price index for wine).
  • Tariffs on wine bottles with minimum import price of US$15 will be reduced from 150 per cent to 75 per cent on entry into force and subsequently to 25 per cent over 10 years (based on Indian wholesale price index for wine).
  • Tariffs up to 30 per cent on avocados, onions, broad, kidney and adzuki beans, cherries, shelled pistachios, macadamias, cashews in-shell, blueberries, raspberries, blackberries, currants will be eliminated over seven years.
  • Tariffs on almonds, lentils, oranges, mandarins, pears, apricots and strawberries will be reduced, improving opportunities for Australia’s horticulture industry to supply India’s growing food demand.
  • The resources sector will benefit from the elimination of tariffs on entry into force for coal, alumina, metallic ores, including manganese, copper and nickel; and critical minerals including titanium and zirconium.
  • LNG tariffs will be bound at 0 per cent at entry into force.
  • Tariffs on pharmaceutical products and certain medical devices will be eliminated over five and seven years.

Wow! India Australia trade deal much bigger than we thought

These two Ministers are transforming the Australia-India relationship

Wow! The Australia-India Economic Cooperation and Trade Agreement signed yesterday is a whopper.

Get on the plane now if you are in business or education! The trade and investment doors are open for you.

The two trade ministers, Australian Dan Tehan and Indian Piyush Goyal, are transforming the economic relationship and created a platform for decades of growth for India and Australia. Well done.

READ MORE DETAIL HERE:

https://www.trademinister.gov.au/minister/dan-tehan/media-release/historic-trade-deal-india

India riding high – exports pass US$400 billion for the first time

Prime Minister Mr. Narendra Modi has announced that India had passed the US$ 400 billion mark in goods exports for the first time, calling it a “key milestone” for his government’s Aatmanirbhar Bharat (Made in India) initiative for manufacturing self-sufficiency.

He made the statement as India’s services and industrial activities remained stable in February, despite the fact that the crisis in Ukraine has clouded the outlook for prices and growth in the consumer-driven economy.

“India set an ambitious target of US$ 400 billion of goods exports & achieves this target for the first time ever. I congratulate our farmers, weavers, MSMEs, manufacturers, exporters for this success,” he said posting a graphic showing the target being met nine days ahead of the deadline.

Time to upgrade your India market entry strategy?

https://timesofindia.indiatimes.com/business/india-business/explained-in-charts-how-india-achieved-400-billion-export-target/articleshow/90398092.cms

9 Key Factors to Winning in India

Follow the lead of successful businesses who have advanced by integrating Indian culture and values into their offering.

  1. Abandon the “quick sale” old mindset and adopt patience and a long-term view.
  2. Model your business on Macquarie Bank – this works whether you are a large or small enterprise. Their central plank for India was partnering is the key to success.
  3. Abhishek Poddar, Managing Director, Macquarie Infrastructure and Real Assets (MIRA) “India is one market where you need deep experience if you’re going to be successful. You have to take the time to appreciate and understand its unique culture and ways of working.”
  4. Be clear about what India wants. Macquarie saw infrastructure and clean energy opportunities and focused just on them.
  5. Most successful businesses in India have some philanthropic activity – this is highly worthwhile and well regarded in India.
  6. Establish good relations with Government at Central and State levels – this is vital to being accepted in India.
  7. Consider options such as acquisitions and partnerships which can speed up your market acceptance.   
  8. Be there for the long haul – Deakin University continues to make gains in India and has been present there for over 25 years.
  9. Develop a local Indian team and allow them to apply their own culture – within your larger business culture.

Well done on Modi deals, Scott Morrison – he “gets” India

Australian PM Scott Morrison at the virtual talks yesterday with Indian PM Modi.

In a meeting yesterday with Indian PM Narendra Modi, Australian Prime Minister, Scott Morrison, cemented ties with India in a series of deals worth almost A$190 million. He gets (understands) India.

PM Modi is an “investment magnet”, but is also strongly wary of “multilateral” groupings and has a preference to do deals country by country.

So, PM Morrison did a country by country deal. He used some of the western rhetoric over Russia, Ukraine and China, but then got stuck into business.

What is there to “get” about India that matters in our region?

First, it wants investment.

Second, it stays away from promoting democracy as the ONLY future, instead seeing all countries as different and many having different forms of government – all accepted by India.

Third, it now buys most of its defence hardware from Russia and has a long standing close relationship with them.

Fourth, it wants to be in the QUAD (Australia, Japan, USA and India) but will only play on its own terms – that is, not condemning others and not championing democracy as the only solution.

Fifth, Modi is riding high, and he has numbers to back it up – India is the world’s fastest growing economy in 2020. You have to “get” his confidence levels, which are high.

Sixth, India is keen for more Indians to have access to Australia and to work here – PM Morrison “gets” this, and it was significant that the Monday night talks also included a taskforce to see if both countries could recognise the same education qualifications.

Seventh, India has a proud culture and history, feels rightly that much has been plundered by the west – so it was highly important that the National Gallery of Australia formalised the return of artefacts to India.

Future challenges?

There are plenty. The CECA (free trade deal) will soon announce “early harvest” deals and then plans to complete a full CECA some time this year. Good luck with that – especially as our own Aussie negotiators have always been averse to cherry picking. I think PM Morrison gets the need for flexibility and hope he is challenging his bureaucrats to do the same.

Relying more on our High Commission staff in Delhi would be a good step as we have outstanding people there.

But by and large, finally, it seems Australia is “getting” India.

India imports of Australian wine up 81%

Ricky Ponting has teamed up with Mr Riggs for the India wine market

Sam Freeman is Trade and Investment Commissioner at Australian Trade and Investment Commission (Austrade) in India and is working with the Aussie wine industry to boost sales in India.

Now he is supporting Ricky Ponting (Ponting Wines) and Ben Riggs (Mr Riggs) in entering the India market.

He says: “Australia has witnessed a dramatic rise in the volume and value of wine being imported into India. The last 12 months have seen 81% growth in Australian exports to India and 10 new brands entering the market.

“Austrade is working with a number of wineries across Australia, to assist in their access to this small but emerging market. It was great to see coverage of one of our clients in Glam Adelaide, expressing their interest in the market and the potential it holds.

“It’s been a pleasure working with Ricky, David & Ben to help them build a strategy and channel for Ponting Wines to enter India. We look forward to seeing their labels on shelves soon.”

Good news story of Indian entrepreneurship and creativity in Australia

Jaspreet Singh (left) and Surinder Singh started their own processing operation in 2016 in Australia.

This ABC story is such GOOD NEWS!

Two migrants from the Punjab, Jaspreet Singh and Surinder Singh, formed Kisaan – which means ‘farmer’ in Punjabi – started making Indian-style cheese before moving on to unhomogenised milk.

It has taken off!

Expecting more great things from these two!

Read on…

https://www.abc.net.au/news/2022-02-07/shepparton-kisaan-dairy-company-thrives/100806084?fbclid=IwAR0PBDGM0nN8wHdFi7f7iOpoZJrPhLq45Mra7Lvu9L23jYo4a6vWGLGsrLA

India’s middle class and wealthy consumers – the facts reveal why you should engage with India

Conservative figures put the Indian middle class at 228 million

How big is India’s middle and wealthy class? And where are they?

Although this information is essential to your India engagement strategy, until now the answers have really only been speculation.

Lack of data continues to be a challenge, and estimates can vary wildly.

So, INTO INDIA brings you some numbers robust enough for you to use in your planning.

While some estimates put the middle class at 500 million or more, using a much tighter definition of middle class, Hurun Research produced much smaller numbers than most. They defined middle class as households who have more than over A$4,682 per year to spend on housing, travel, cars, education and products. These numbers found 57 million Indian households in the combined class of middle class and wealthy. Now, assuming each household might be four people, that becomes 228 million people.

Things are changing so fast that researchers have added a new category – the “New Middle Class”. In 2021 this new group was 633,000 households – around 2.5 million individuals. Who is in this group? It is those households who have approximately A$37,500 per year to spend on housing, travel, cars, education and products – a very exciting market!

Most of my research – but not all of it – comes from the Hurun Report, a leading research, luxury publishing and events group established in London in 1998 with presence in India, China, France, UK, USA, Australia, Japan, Canada and Luxembourg. It is widely recognized world-over for its comprehensive evaluation of the wealthiest individuals across the globe.

There are 412,000 dollar-millionaire households/affluent households in India with a networth of at least US$1 million.

Hurun Rich Listers have a wealth of Rs 1,000 crore (142 million), the report says, and pegs the number of such cumulative households in India at 3,000.

At the other end of the spectrum is the ‘Indian middle class’ that has earnings of over Rs 2.5-lakh per annum (over A$4,682) and a net worth of less than Rs 7 crore (A$1.3 million). 56,400,000 families in India fall under this category – approximately 224 million individuals.

The McKinsey Global Institute, which defines India’s middle class as households with real annual disposable incomes between 200,000 and 1 million rupees (US$3,606 to $18,031), estimates the ranks of middle class will more than double by 2025 to 583 million—41 percent of the population.

Where are they?

The top 10 states home to 70.3 per cent of millionaire households in India are Maharashtra (capital is Mumbai) has the highest number of millionaires (56,000), followed by Uttar Pradesh (36,000), Tamil Nadu (35,000), Karnataka (33,000) and Gujarat (29,000). City-wise, Mumbai is home to most millionaires (16,933), followed by Delhi (16,000), Kolkata (10,000), Bengaluru (7,582) and Chennai (4,685).

Aslany, who published a study on the Indian middle class in 2019, found that contrary to most assumptions, a significant segment of the Indian middle class resides in rural areas. About 28.05% of India’s population was middle class, Aslany found, adding that 52.31% of the lower middle class, more than 32% of the comfortable middle class, and more than 23% of the upper-middle class was in rural India. Most of the lower middle class in rural India are involved in agriculture, he said.

These realistic numbers should excite you to engage with India – right now demand for everything has gone through the roof!