India's relations with Hong Kong are historical and date back to the 19th century. India and Hong Kong have been trading with each other since the middle of the 19th century; relations between the two people have been warm and cordial; and, Hong Kong has for long been home to a large Indian community, many of who arrived here more than a century and half ago.
There are around 1,500 Indian companies registered in Hong Kong, and their activities include services, investment finance, banking, industries, transportation, information technology and telecommunications. Hong Kong is also host to a large number of Indian professionals in banking, IT and shipping. Ten public sector banks and three private sector banks from India are currently operating in Hong Kong.
Numerous global financial majors, investment institutions and fund managers operating in India have their regional headquarters in Hong Kong. Foreign Direct Investment to India from Hong Kong has been increasing in recent years. Hong Kong is also a major sourcing centre for Indian companies and it has emerged as a major re-exporter to Mainland China of items it imports from India.
In 2015, India was the fourth largest export market for Hong Kong. Hong Kong's total exports to India expanded 8.1 per cent to US$13.1 billion last year. Major export items included telecom equipment & parts (US$5.13 billion, 39.3% share, +32.2% YOY), pearls, precious & semi-precious stones (US$4.74 billion, 36.3% share, +5% YOY), silver & platinum (US$607 million, 4.6% share, -61.6% YOY), computers (US$338 million, 2.6% share, +53.5% YOY) and semi-conductors, electronic valves & tubes, etc (US$212 million, 1.6% share, +24.4% YOY).
On the other hand, India was Hong Kong's ninth largest source of imports in 2015. Hong Kong's imports from India contracted 13.7% to US$10.6 billion for the period. Major import items included pearls, precious & semi-precious stones (US$7.46 billion, 70.2% share, -13.6% YOY), jewellery (US$2.15 billion, 20.2% share, -11.3% YOY), leather (US$279 million, 2.6% share, -19.6% YOY), telecom equipment & parts (US$86 million, 0.8% share, +2.7% YOY) and textile yarn (US$65 million, 0.6% share, -39.4% YOY).
Many Indian companies have established offices in Hong Kong. As of June 2015, there were 12 Indian companies with regional headquarters in Hong Kong, 15 with regional offices, and 37 with local offices. The range of businesses includes trading, banking, IT and logistics. In addition, there are several associations and groups that organize many social, religious and cultural functions and host music and dance troupes from India.
Current developments in India provide Hong Kong with the opportunity to move on from trade to investment within India, rather than to allow economic relations to become stationary. While Hong Kong remains "Asia's World City," it has also assumed a high-profile role as China's international financial window.
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Chahat Jain is a Video Producer with Political Science background. She has worked in Business News Channels like ET NOW and ZEE Business. She loves travelling and socialising
