May 19, 2023

The Warmblood Horse Tax in India Was Eliminated

The Oxer
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GM, partner. This is The Oxer by Pegasus. The newsletter that takes you out of your tack room and into the global equestrian industry.

🐴 Here’s what we’ve got for you today:

India’s government just enabled equestrian: Find out what the government did to enable their equestrian industry.
Fighting on the streets of LA: An equestrian village (literally, not figuratively) is fighting for its rights.
Final Foals: Check them at the bottom of every edition, including this one.

🕌 The Warmblood Horse Tax in India Was Eliminated

What happened?

The Indian government’s decision to eliminate import tax on warmblood horses is expected to boost equestrian sports in the country, according to Col Jaiveer Singh, secretary general of the Equestrian Federation of India.
The exemption from the import tax will allow Indian riders to purchase premium mounts at competitive prices, improving the overall standards of the sport.
Currently, the cost of importing a quality warmblood horse is significantly higher due to import duties, making it challenging for individual riders to pursue the sport.
The exemption, which was requested by the Equestrian Federation of India (EFI) and granted for five years, will result in a 52 percent cost reduction. Singh believes that this move will encourage more people to take up equestrian sports in India and further develop the sport at the international level.

Indian equestrian rider Fouaad Mirza (Equestrian Federation of India)

Our jump on the subject

This goes a long way to opening up India as a new and burgeoning market for equestrian businesses. The first order effect will be an increase in the number of horse sales in India. The second order effect will be an increase demand for all product ad services that go along with the purchase of a horse – think tack, apparel, pharmaceuticals and training services (offline and online).

This exemption also raises the overall standards of the sport in the country, now that better horses will become more available and affordable. Which provides opportunities for high-quality horse shows and thus higher-value branding opportunities.

Taking inspiration from French and English breeders in China, who ignited operations to sell Western bloodlines there, it may seem tempting for American breeders to do the same in India.

However, it is crucial to tread cautiously, as the Indian business landscape possesses distinct characteristics that demand a nuanced approach.

For example, it is commonly said by western business leaders (first with a laugh, and then with a sigh) that ‘it’s impossible to get your money out of India.’

Meaning, due to corruption, many western businesses have invested in Indian opportunities only to find their expected profits have evaporated when they are returned – often due to Indian middle men finding ways to take a cut with zero transparency.

For American horse sellers and businesses eager to capitalize on this new market, we suggest two paths to success. One, fly to India and find a local Indian partner you trust and who is contractually incentivized to make sure the deal stays clean. That way they will work to make sure you get what you are owed.

Alternatively, find an English partner to help navigate the Indian business landscape. English business professionals have a far greater historical understanding of Indian markets due their colonial past, and they have a wealth of relationships to lean on to make sure they navigate the waters accurately.

So if you are an American breeder or horse sales agent with no Indian connections and no way to background check local Indian partners, maybe find an English partner who can help you out.

🏙️ This LA Equestrian Community’s Fight to Stay Pure

What happened?

Residents of Pellissier Village are concerned that officials want to allow more development in the area, potentially destroying the equestrian lifestyle they cherish.
Horse owners from across Southern California gathered to voice their grievances, claiming that code enforcement has intensified as the COVID-19 pandemic subsides.
They argue that officials are targeting working-class communities and ignoring larger issues.
Avocado Heights Vaquer@s, an environmental justice group, organized a town hall meeting to demand answers and raise awareness about the situation.
The L.A. County Department of Regional Planning announced a 120-day moratorium on code enforcement inspections in Avocado Heights, stating that it is reviewing policies and procedures.

Residents gather in Pellissier Village to discuss code enforcement (Irfan Khan / Los Angeles Times)

Our jump on the subject

This is not the first time an equestrian community has been threatened by land developers.

As populations grow and metropolitan centers swell, local governments are increasingly under pressure to approve new housing developments to house all the new people and ensure our streets do not become overrun with homeless populations.

Over the last 30 years, once-safe equestrian centers like Loudoun County (outside Washington, DC) or Pellissier Village are now in the eyes of developers. For example, just like Pellissier Village now, a couple of years ago, the small village of St. Louis in Loudoun Country fought off land developers after a prolonged battle.

Unlike Pellissier Village, however, St. Louis is adjacent to nearby wealthy Middleburg, Virginia, and so the developers found themselves up against a passionate and connected equestrian community that had the means to fight back and ultimately succeed.

save_st_louis A sign signaling the opposition to the planned development in historic St. Louis before the community won the case (Cal Cary)

Battles like this between equestrian communities and land developers will undoubtedly grow more common as populations spread, so it is in all our interest to start preparing for it now and doing what we can to insulate our lands.

One strategy that is common in Loudoun County is to place your land in a heritage trust to legally protect it from development. Maybe that’s a strategy more equestrian communities across America can pursue.