Moroccans base businesses runs on trust and mutual respect built over time. Having working relationships are often critical to concluding deals in Morocco. Its recommended that Indian exporters should strongly consider travel to the country to develop and strengthen relationship.
India-Morocco Trade:
In 2023, India exported $1.51B to Morocco. The main products that India exported to Morocco were Other Large Iron Pipes ($286M), Refined Petroleum ($199M), and Cars ($80.6M). Over the past 5 years the exports of India to Morocco have increased at an annualized rate of 16%, from $720M in 2018 to $1.51B in 2023.
In December 2024, the top exports of India to Morocco were Motor Vehicle/Cars ($17.4M), Manmade Yarn,Fabrics,Madeups ($7.08M), Spices ($6.8M), Drug Formulations, Biologicals ($3.32M), and Sesame Seeds ($3.02M). In December 2024 the top imports of India from Morocco were Inorganic Chemicals ($41.4M), Fertilizers Crude ($18.9M), Iron and Steel ($416k), Aluminium, Products of Aluminm ($372k), and Other Crude Minerals ($251k).
GROWTH
In December 2024, the decrease in India’s year-by-year exports to Morocco was explained primarily by a decrease in product exports in India. Machinery for Dairy Etc. ($-3.18M or -70.9%), Products of Iron And Steel ($-1.94M or -81.2%), and Rice (Other Than Basmati) ($-1.93M or -89.8%). In December 2024, the increase in India’s year-by-year imports from Morocco was explained primarily by an increase in product imports in Fertilizers Crude ($5.7M or 43.3%), Other Crude Minerals ($247k or 6.04k%), and Essential Oils ($17.7k or 232%).
Strengths of the Moroccan market include:
- good communication network and global transport connections
- strategic geographic location and gateway to Africa
- strong banking and finance sector
- advanced status’ with the EU since 2008 competitive labour costs
- tax incentives, no restrictions to capital and ease of repatriation for profits and dividends.
2. Challenges doing business in Morocco
- There are some challenges to doing business in Morocco, including:
- bureaucracy
- implementation of legislations and delayed decision making
- counterfeiting
- competition from EU trading partners and growing competition from non EU countries
- price sensitivity of the market and low consumer purchasing power
- high unemployment and large informal sector
3. Growth potential
Morocco is a stable emerging market and has made remarkable economic progress over the past few years. Over the last decade, Morocco has significantly liberalised its trade regime and strengthened its financial sector. It retains strong international market confidence and continues to attract significant Foreign Direct Investment (FDI) inflows.
Gross Domestic Product (GDP) growth slowed to 2.4% in 2014 due to falling agricultural yields. GDP growth is expected to increase up to 4.5% in 2015 driven by manufacturing and services activity.
Agriculture remains an important part of the economy. It employs around 40% of the population and represents 15 to 20% of GDP.
RICE MARKET IN MOROCCO
RICE EXPORTS FROM MOROCCO
In 2023, Morocco exported $216k in Rice, making it the 111th largest exporter of Rice in the world. At the same year, Rice was the 646th most exported product in Morocco. The main destination of Rice exports
from Morocco are: Spain ($207k), Luxembourg ($2.67k), Germany ($1.41k), Ghana ( $1.24k), and Egypt ($1.18k).The fastest growing export markets for Rice of Morocco between 2022 and 2023 were Germany ($1.41k), Luxembourg ($1.35k), and Ghana ($1.24k).
IMPORTS TO MOROCCO
In 2023, Morocco imported $56M in Rice, becoming the 94th largest importer of Rice in the world. At the same year, Rice was the 220th most imported product in Morocco. Morocco imports Rice primarily
from: India ($33.4M), Thailand ($4.5M), Spain ($3.89M), Italy ($3.19M), and Turkey ($2.93M).
The fastest growing import markets in Rice for Morocco between 2022 and 2023 were India ($15.9M), Spain ($2.96M), and Turkey ($2.41M).
Some Issues Should Be Highlighted While exporting to Morocco Defaults of Clients in Morocco:
Though there is a lot more scope to grow exports to morocco, but in recent 3 years a lot of importers are defaulting in taking / honouring cargoes when it reaches at their port.
- It’s happening for market volatility in commodity market.
- Some clients knowingly do it to get more discounts
- Some clients also ask cargoes without payments once cargo reach, as they know without the NOC from importer, no exporter can release the docs or move the cargo or cannot sell to other customers.
Its advised to know well your customer and should have some references before making deals.
To know more or need any help in Moroccan market, do comment on this section to reach out to you.