Insight

Espace, the UKs first employee-owned freight forwarder, believes that the Indian export market will surpass any other world economy in terms of growth over the next ten years, which is why it has made India the focus of its long-term global strategy.

Geoff Yates, commercial director of Espace Global Freight, explains: “India has an incredibly exciting economy at the moment and it has been making significant strides, emerging as a key player in global trade – including the fastener and fixing sector. This has been driven by robust manufacturing capabilities, competitive pricing and a skilled workforce.”

Celebrating 24 years of international freight forwarding in May 2024, Espace started out as European and time critical specialist, with a strategic acquisition of an air and ocean forwarder in 2017 allowing it to expand beyond its European horizons. 

“In the fastener and fixing industry, staying updated on the global market trends is crucial for making informed sourcing decisions and giving an all important edge over the competition,” highlights Geoff. “Over the past decade, Indian exports have demonstrated a steady upward trajectory, recovering strongly post-pandemic. The fastener and fixing sector has seen substantial growth, with Indian manufacturers meeting the increased global demand and adhering to stringent quality standards.”

Several factors make India an attractive sourcing destination. The cost-effective production capabilities are a major draw. Lower labour costs, combined with advancements in technology and infrastructure, also allow Indian manufacturers to offer competitive prices without compromising on quality. 

To add to this, improving trade between India and the UK is high on the agenda on a political level. “We met with the head of strategic relationship management at the British High Commission in Mumbai,” mentions Geoff. “They are very keen to assist British businesses to source high-quality manufactured parts from India and were all too aware of the key link that freight forwarders can play in that process.”

India’s emphasis on quality assurance through certifications, such as ISO and CE, enhances confidence in their products. However, ensuring consistency in quality and lead times can also be a concern. Recently, there are also increased logistical challenges in bringing goods from India, and Asia in general, to the EU.

“Negative developments in the Red Sea have had significant implications on shipping from Asia into Europe. Cargo vessels now navigate around the Cape of Good Hope, adding at least two weeks onto lead times, which has meant UK and EU importers either need to import more stock, order more often or look at alternative ways of bringing in goods from Asia,” reports Geoff. “Costs are also rising rapidly on the water as the displacement of vessels and a lack of boxes has affected capacity. Luckily, air freight costs are currently holding steady – providing a viable alternative.”

The Indian government has also focused on improving the ease of doing business, such as implementing the Goods and Services Tax (GST), which simplifies tax structures and compliance. Plus, the ‘Make in India’ campaign aims to transform India into a global manufacturing hub by encouraging both local and foreign investment. Incentives such as duty drawback schemes, as well as the export promotion capital goods scheme, reduce cost burdens on exporters, which directly benefit importers in the UK and EU.

“Since BREXIT our value in the supply chain has gone from being a company that just moves freight around the world to being a company that enables and assists in worldwide trade,” states Geoff. “We have a lot of connections in the freight community and in the wider trade community. We’ve been able to build on the BREXIT experience and be part of many success stories and we’re really proud of that.”

Espace offers a full array of freight solutions from around the world, including road freight, air, ocean and rail. “Working closely with the midlands automotive industry has allowed us to develop bespoke service solutions. Cost is the key driver for many consignments of course but automotive traditionally favours ‘Just in Time’ practices so there are times when express, be it a dedicated van across Europe, On Board Courier or aircraft charter are the only options. We have a fully qualified in-house customs clearance team allowing us to seamlessly integrate the customs process with the movement of goods,” concludes Geoff.