India Hong Kong Trade
India Hong Kong Trade Agreement
Introduction
The relations between India and Hong Kong date back to the 1840s. From trading ties established in the middle of the 19th century (1840 onwards), the relations of the two nations today cover sectors such as investment finance, maritime, services, shipping, logistics, culture, education and trade.
India-Hong Kong Trade
- Hong Kong was India’s 12th largest export market destination in FY23.
- India was the 8th largest trading partner of Hong Kong in 2021.
- India-Hong Kong bilateral trade saw a sharp rise with a year-on-year increase of 38.6%.
- Hong Kong occupies the 14th position in FDI equity inflows into India with a cumulative FDI amount of US$ 4.71 billion (April 2000-March 2023).
- Indian exports to Hong Kong primarily include pearls, precious & semi-precious stones, iron & steel, electrical machinery, meat & edible meat, machinery, mineral fuels, fish & crustaceans, raw hides & skins, optical & medical instruments and pharmaceutical products. While Indian imports from Hong Kong include electrical machinery, pearls, precious and semi-precious stones, machinery, optical & medical instruments, plastic & articles thereof, organic chemicals, iron & steel, and pulp of wood.
Major exported items from India to Hong Kong with amount & quantity
- India exported 3,015 commodities to Hong Kong in FY23.
- India’s export to Hong Kong stood at US$ 9.89 billion in FY23 and US$ 10.98 billion in FY22.
- Major exported items from India to Hong Kong include pearls, precious, or semi-precious stones (US$ 5.93 billion); followed by gold and other precious metal jewellery (US$ 2.79 billion), telecom instruments (US$ 198 million), electronics components (US$ 136 million), and buffalo meat (US$ 107 million), etc. in FY23.
- India’s export to Hong Kong stood at US$ 1.01 billion during April-May 2023.
Major imported items by India from Hong Kong with amount & quantity
- India imported 4,039 commodities from Hong Kong in FY23.
- India’s imports from Hong Kong stood at US$ 18.27 billion in FY23 and US$ 19.09 billion in FY22.
- Major items imported by India from Hong Kong include pearls, precious, or semi-precious stones (US$ 5.32 billion); followed by electronics components (US$ 4.28 billion), telecom instruments (US$ 1.79 billion), computer hardware and peripherals (US$ 1.34 billion), and silver (US$ 1.14 billion) etc. in FY23.
- India’s imports from Hong Kong stood at US$ 2.43 billion during April-May 2023.
Economic Relations and Investments
India and Hong Kong have seen considerable growth in commercial relations. Hong Kong companies also have been increasingly looking at India as an investment destination. Many Hong Kong companies have a huge presence in India. This includes China Light and Power (CLP), Li & Fung, Shangri La, Kerry Logistics and PeakRe, to name a few.
Hong Kong is host to a large number of Indian professionals in banking, IT and shipping. Six public sector banks and two private sector banks from India are currently operating in Hong Kong.
Recent Trends and Developments
- The International Day of Yoga is celebrated in Hong Kong every year since its inception. The event is well-attended by the members of the Consular Corps, Indian Diaspora, expatriates and locals. In 2022, the event was held at the Hong Kong Convention and Exhibition Centre, which was attended by around 400 people.
- In 2021, India was Hong Kong's 8th largest trading partner. Reciprocally, Hong Kong was India's 4th largest trading partner in 2021.
- India-Hong Kong bilateral trade was US$ 28.16 billion in FY23.
Conclusion
Hong Kong has always acted as a “Gateway to China” for companies in the rest of the world. With the rapid growth in engagement between the Chinese and Indian economies, Hong Kong presents a great opportunity to act as a “Gateway to India” for mainland companies and become an important stakeholder and a beneficiary of this huge opportunity.
Contacts
- Consulate General of India, Hong Kong
Chancery – Address: 16-A, United Centre, 95,
Queensway, Admiralty, Hong Kong
OfficialsMs. Satwant Khanalia - Consul General
Email: cg.hongkong@mea.gov.in
Mobile: 39709911 (O)
Mr. Vikas Garg - Consul (Consular)
Email: consular.hongkong@mea.gov.in
Mobile: 39709960 - Hong Kong Consulate, India
Address: EC-72, Sector 1, Salt Lake City, 700064, Kolkata, India
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