Selling in the Indian market can be complicated and difficult for new entrants for a variety of reasons, including:

• Market fragmentation due to the country’s vast size, cultural and linguistic differences, and infrastructure
• Low per capita income 
• High cost of creating and maintaining independent sales infrastructure
• High retail outlet density (12-15 million outlets) spread over many urban and rural centers, which is often small and unorganized
• Strong local competition

Trade Promotion and Advertising

Since the liberalization of the Indian economy in the early nineties, the Indian economy has moved from being a controlled seller’s market to an open buyer’s market. The opening of the Indian economy saw increased competition and the need for increased advertising. According to various industry estimates, India currently ranks among the top ten markets globally on advertising expenditure with an estimated $18.5 billion for 2024. Digital media is the fastest growing segment with over 55% market share followed by television. Print media comprises 24% of advertising expenditure. Radio, outdoor, and internet advertising command smaller shares. 
More than 65% of India’s population is rural. The key to gaining rural market share is increased brand awareness and affordability, complemented by a wide distribution network to ensure availability. Rural markets are often best covered by mass media (television, newspapers, and radio), as India’s size and limited infrastructure pose challenges for effective use of other media. With improvements in basic telecommunication services and increasing penetration of smartphones in rural areas, online purchases by rural consumers are increasing.

India has a diverse and growing number of daily newspapers. Print media reaches 70% of urban adults. Further, the number of readers in rural India is now roughly equal to that in urban India. Print media is almost completely controlled by the private sector and advertising and promotional opportunities are available in many newspapers including daily, weekly, and monthly business publications, news magazines, and industry-specific journals. A decade ago, television was one of the most popular advertising channels, but social media and platforms such as YouTube, video advertising, video blogging, and direct message tools are seeing increased use.
U.S. companies interested in advertising in the Indian media can choose from many advertising agencies. Many large and reputable international and U.S. advertising agencies are present in the market, and they work in coordination with local advertising agencies. In addition to advertising, U.S. companies can also work with established public relations firms across the country. 

Trade shows are also an effective means of promotion for U.S. products and services. U.S. companies can select from several quality international trade fairs to display and promote their products and services. The U.S. Commercial Service partners with many Indian trade show and U.S. pavilion organizers to promote U.S. products and services.

The U.S. Department of Commerce, U.S.-based industry associations, and individual U.S. states organize trade delegations and missions to India to explore business prospects with Indian public and private sector buyers and prospective partners. The U.S. Commercial Service in India offers a range of services to help U.S. suppliers explore opportunities in the Indian market. U.S. Exporters can arrange for customized marketing services through our Single Company Promotions. 

Pricing

In July 2017, India implemented the Goods and Services Tax (GST) to unify Indian states and union territories into a single market to improve the ease of doing business. The GST is designed to improve tax compliance, increase price transparency, and simplify the movement of goods within India. There are four GST rates: 5%, 12%, 18%, and 28%. The highest rates apply for luxury items.

\The GST system follows a dual structure, comprising a Central GST (CGST) levied by the Central Government and a State GST (SGST) levied by the state governments. In the case of inter-state transactions, an Integrated GST (IGST) is additionally levied, which is collected by the Central Government and allocated to the destination state. The import of goods and services is treated as inter-state supplies and is subject to IGST in addition to the applicable customs duties.

Petroleum products such as gasoline, diesel, natural gas, aviation turbine fuel, electricity, and liquor remain outside the scope of the GST, with individual states retaining the power of taxation. While the entertainment industry is part of the GST regime, municipalities and regional governing councils have the authority to impose additional taxes. To avoid product import duties and other costs, some foreign companies, particularly in the consumer goods sector, have established manufacturing facilities in India.

Pricing may also affect product packaging decisions. Many consumer product suppliers have found it helpful to package smaller portions at reduced prices. Although some Indian consumers are aware of quality differences and insist on world-class products, many customers are willing to sacrifice quality for price.
Bargaining is routine for the buyer and seller in India. For consumer goods, especially for durables such as refrigerators, televisions, and washing machines, sellers often offer discounts during holiday seasons to attract customers. Trade-ins are also becoming increasingly popular among Indian consumers. A successful pricing strategy must consider these factors.

Sales Service and Customer Support

While U.S.-made products enjoy a reputation in India for premium quality, durability, and low maintenance costs, Indian buyers are price sensitive and often choose products with low initial acquisition costs. U.S. companies, especially those new to the market, often need to persuade Indian consumers to make purchases based on lifecycle costs. 

Ensuring a consistent and positive experience for customers across all channels and touchpoints is key for succeeding in the market. The Indian customers appreciate faster and quality after-sales support and associate it with good value. To ensure efficient distribution of products and timely after-sales service, it is usually more efficient to establish regional service centers with sufficient inventory than to partner with third party service companies or ship items back to the United States for servicing or product repairs.

To compete with local and other foreign suppliers already present in the country, U.S. companies should consider:

• Establishment of an efficient 24/7 call center system staffed with trained, knowledgeable, technical and maintenance personnel for after-sales support.
• Empowering support team with the most relevant data and the right tools to provide fast and personalized support service.
• Adopting new technologies, including AI-powered solutions to personalize interactions and improve efficiency in providing customer support.
• Having staff on call with spare parts when replacements are needed.

Considerations like above are very important when seeking long-term success in the value-conscious Indian market.

Local Professional Services

Maintained by the U.S. Commercial Service, the Business Service Providers Directory is a list of experienced Indian and U.S. businesses offering services to U.S. exporters and investors. You may also be able to identify professional service providers through the following business associations:
Principal Business Associations (in alphabetical order)

Principal Business Associations (in alphabetical order)

• American Chamber of Commerce (AmCham) India
• Confederation of Indian Industry (CII)
• Federation of Indian Chambers of Commerce & Industry (FICCI)
• Indo-American Chamber of Commerce (IACC)
• The Associated Chambers of Commerce & Industry of India (ASSOCHAM)
• U.S.-India Business Council (USIBC)
• U.S.-India Importers’ Council (USIIC)
• U.S.-India Investors Forum (USIIF)
• U.S.-India Strategic Partnership Forum (USISPF)

Please contact the U.S. Commercial Service India for details of other business associations in India, including regional bodies.

Limitations on Selling U.S. Products and Services - Medical Devices 

The Indian government regulates medical devices (including instruments, implants, and software intended for human or animal medical use) as “drugs,” under the Drugs & Cosmetics Act (D&C Act), 1940.   On July 8, 2022, the Ministry of Health and Family Welfare (MoHFW) introduced a Draft Drugs, Medical Devices, and Cosmetics Bill to replace the existing D&C Act, with the goal of improving safety, effectiveness, and global alignment of medical products in India. After several rounds of industry consultations, MoHFW has incorporated feasible suggestions into the revised draft. The final draft is currently under review by the ministry and will be presented during parliamentary proceedings. Once approved, the bill will establish a new regulatory framework for medical devices, pharmaceuticals, and cosmetics in India. However, the current D&C Act remains in effect until the bill is passed. 

On May 2, 2023, the Government of India (GOI) introduced the National Medical Device Policy, 2023, with an aim to lay down a strategic roadmap with the objectives to achieve: universal access to quality medical devices, boosting domestic manufacturing capacity for affordability, enhancing product quality and global competitiveness, improving clinical outcomes through early diagnosis and accurate treatment, promoting a healthier lifestyle through extensive device applications, fostering innovation in the sector, and developing strong local manufacturing capabilities and resilient supply chains. The policy also aims to streamline regulation, enabling infrastructure, R&D, and innovation, to facilitate the sector’s growth and development. 
On January 1, 2018, the Medical Device Rules (MDR) 2017 came into effect, regulating the clinical investigation, manufacture, import, sale, and distribution of medical devices in India. Although the MDR 2017 was initially implemented in 2017, it has since undergone several amendments, with the latest update in June 2023. These rules introduced a classification system for implantable devices and marked a shift from **a previously voluntary registration scheme** to a mandatory one. 

Starting in October 2021, Class A and B medical devices were required to register, with Class C and D devices following suit in September 2022. Medical devices are classified based on patient risk: Class A (low risk, e.g., surgical dressings), Class B (low to moderate risk, e.g., needle kits), Class C (moderate to high risk, e.g., bone cement), and Class D (high risk, e.g., coronary stents).  
In January 2022, the GOI mandated that all medical device companies register their products with the Central

Drugs Standard Control Organization (CDSCO) and obtain ISO 13485 certification. This ensures the safe manufacturing and control of medical devices and in-vitro diagnostic products, reinforcing India’s commitment to patient safety and regulatory excellence. 

In June 2021, the Quality Council of India and the Association of Indian Medical Device Industry added new features to the Indian Certification for Medical Devices Scheme of 2016. This new scheme, called Indian Certification for Medical Devices Plus (2021), was designed to verify the quality, safety, and benefits of medical devices and help government agencies identify counterfeit products and falsified certifications. In addition, the new rules eliminated the need for re-approval of manufacturing and import licenses.