Essay Example on India: Trading Computers in the Highly Populated Country

Introduction

India is one of the highly populated countries in the world, and investors' value trading with the country due to the potential of the large customer base. However, before they undertake the trading process, there are various factors that they must consider that include the trade barriers and the import duties that they may be needed to meet, freight forwarders, and the ability to make exports to the country. Computers are one of the products that are on sale in India in large quantities, and this is due to the advancement in technology and industrialization.

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Trade Barriers

Some of the trade barriers that are experienced by firms that are trading in this country include the labeling and certification departments. The Bureau of Indian Standards (BIS) is the entity that is given the mandate of ensuring that the products entering the country are of the right standards. A lot of bureaucratic procedures are followed, and in some cases, they discourage investors from either selling or buying computers from this country. The countervailing and anti-dumping measures are allowed by the WTO agreement with the desire to protect the local industries against the effects that can be triggered by the dumping of commodities (Dews, 2014). Therefore, it is sometimes difficult to sell refurbished computers in the country. The policy implementation of the anti-dumping process in India raises some concerns due to the issue about due process and transparency. The country experiences service barriers that include restrictions in the banking, insurance, and telecommunication sector. The country's government has strong ownership in various areas meaning that the general public is unlikely to be allowed to operate in these sectors. Additionally, the levies charged might make business unattractive and unprofitable.

Import Duties

When importing computers to India, entrepreneurs are supposed to pay import duties which are usually paid to the point of entry, and the amount of duties that should be paid is 14.712%. When the accessories are involved, the tax charged is based on the total costs of an item, the shipment expense, and the insurance cost. These import taxes include general duty at 10% and an average VAT rate that is given at 0.18. Some of the expenses that are charged when importing computers to India include the landing charge, which is computed at the rate of 1% of the cost of computers, countervailing duty, and its cess, which is calculated at the rate of 12% (Rodrik, 2018). India has many local freight forwarders that can help in facilitating the computer sales, and they include the Shri Vaibhavi Logistics and 3i Logistics (Pvt.) Limited. Any of these two can be used in facilitating the movement of computers from the United States for sale in India.

Feasibility

It is feasible to export computers from the United States to India despite the various restrictions that make the trading process difficult to undertake. Even though the country has instituted trade barriers, there is a possibility that computers can still be trading, considering that they are significant components for the development and economic growth. India is a developing country that requires a lot of support from various sectors to realize its aims, such as the achievement of better health systems and ensure that the economy is growing. The use of computers is a critical company that can help in relaying these goals, and it is feasible selling computers in India. The market is wide, especially of the refurbished computers. The large population is an indication of a wide market that can offer a suitable market for electronic gadgets (Editors, 2011). The country is likely to buy a large number of computers due to the high population growth levels and the desire to continue developing the economy. It is more of a consumer than a producer, and it is even critical to note that the country is not involved in computer production.

It is feasible to export to India, considering that technological innovation is progressing at a faster rate, and it is becoming integral to the various activities undertaken in the Indian economy. Running businesses, artificial intelligence, and the internet of things, renewable energy, and the rise in remote working potential are some of the elements that are calling for the need to adopt the latest technological systems. Companies are recommended to adopt the latest technology system failure to which they will fall behind, lose their market base, and lead to the production of low-quality commodities. Therefore, the companies in India are likely to buy computers that are advanced to ensure that they are easily undertaking their duties with ease (Bureau, 2020). The companies and individuals in this country may want to save time, and investing in computer technology is a critical way of saving time for the transactions will become efficient.

The simplification, automation of activities, and elimination of processes that would take employees days to complete are shortened by the use of computers. Investors in the United States have a wide market in India to sell their merchandise as the entities and individual works towards ensuring that they are utilizing the latest technological systems. The large population in India means that there is a need to have a quick communication process between the customers and workers, and investing in computers could help to improve mobile technological services and remote work. The country should invest in the online content management system and rely on recent applications to ease the running of activities in a business. Therefore, the Indian market is feasible for computer importation (PTI, 2018). The American companies have a platform for selling a significant number of computers for the Indian firms, and persons are working towards digitizing their activities. The demand for computers in India by far outweighs the supply, and the technological level in the United States is advanced in comparison to what India can provide. Therefore, the Indian are more likely to buy technology from the U.S. to support their technological growth.

When importing computers to India, different documents are needed that will help in facilitating the transactions. One of these documents is the certificate of origin that is usually issued by the Chamber of Commerce. The document is offered by the Export Inspection Agency, considering that the customs of the countries that are importing goods to India demand for this document so that they can know the source of the commodities. The Generalized System of Preference is another document that ensures that the commodities provided to the Indians are of the right quality (Mckenzie, 2020). The Import Export Code Number is a document that is required by importers of computers to the Indian market, and this is a one-time licensing procedure that all importers are supposed to meet.

Opening offices in India is critical to ease the trading process and the running of various operations in that country. New Delhi is a better location to set the offices, considering that it is the capital city of the country, and most of the operations happen there. Therefore, a significant number of clients can manage to meet the importer and have a one-on-one interaction physically. A good number of clients may want to physically have an office they can visit to check on the status of their purchase. When they know a place that they can visit, there is a likelihood of the trust between the buyers and sellers improving. Additionally, when selling the computers, it is essential that the buyers can feel that they have a local touch, which may include employing Indians in the office (Jalote, & Natarajan, 2019). The move will help in the distribution of computers around the country and even lobby with the local companies to purchase from the importer.

Conclusion

In conclusion, undertaking international business requires people that are willing to act in the right manner and always observe a high level of professionalism. Trust is paramount and respect between the buyers and sellers. There exist many businesses around the world that are manufacturing computers, and this means that there is a need for the importer to ensure that the needs of the buyers are always met to maintain a positive and cordial working relationship. Getting returning customers keeps a business running, and this can only happen when there is a positive working relationship among the various stakeholders involved in a transaction. The internal working process calls for all parties to deliver the commodities purchased, in the right quality and quantity, and at the time agreed. When there are issues, they should be communicated in advance to ensure that all parties are aware of any prevailing situation that may cause delays, or change of plan.

References

Bureau, E. (2020). India's computer shipments record 6-year high in 2019. The Economic Times. Retrieved from https://economictimes.indiatimes.com/tech/hardware/indias-computer-shipments-record-6-year-high-in-2019/articleshow/74127038.cms?from=mdr

Dews, F. (2014). How the Internet and Data Help the Developing World. Brookings. Retrieved from https://www.brookings.edu/blog/brookings-now/2014/02/06/how-the-internet-and-data-help-the-developing-world/

Editors, F. (2011). How Dell conquered India. Fortune. Retrieved from https://fortune.com/2011/02/10/how-dell-conquered-india/

Jalote, P. & Natarajan, P. (2019). The Growth and Evolution of India's Software Industry. Communications. Retrieved from https://cacm.acm.org/magazines/2019/11/240381-the-growth-and-evolution-of-indias-software-industry/fulltext

Mckenzie, L. (2020). India Opens the Door Wide for Online Learning. Retrieved from https://www.insidehighered.com/news/2020/02/17/indian-government-opens-market-online-higher-education

PTI. (2018). Asus eyes bigger share of India's consumer, gaming PC market. The Economic Times. Retrieved from https://economictimes.indiatimes.com/tech/hardware/asus-eyes-bigger-share-of-indias-consumer-gaming-pc-market/articleshow/65389168.cms?from=mdr

Rodrik, D. (2018). Will new technology in developing countries be a help or a hindrance? World Economic Forum. Retrieved from https://www.weforum.org/agenda/2018/10/will-new-technologies-help-or-harm-developing-countries/