Export business is a very profitable venture and anyone can start this business easily in India. The procedure of exporting any product from India to the international market is very simple and the whole infrastructure is managed by the government of India.
On the other hand, the Indian government has launched various bonus and incentive schemes for exporters to encourage them in this business. In this article, we will discuss various topics such as how to start export business, what are the process of exporting, how to find buyers in the international market and how to find profitable products to export from India.
Products can be exported from various seaports in India. Such as Mumbai port, Kolkata port, Trivendapuram port, Godra port, etc. The government of India has constructed seaports in every city which is facing the sea. Also, there are some Inland Container Depot(ICD) which is also known as Dry Ports, these dry ports are in cities without the sea. Some of the cities which have ICD are Pune, Aurangabad, Indore, Bangalore, Ghaziabad, etc.
Read more : Import and Export Process in India
Benefits of Export Business
Export business is very profitable because the prices of a particular product in various other countries are different. For example, the price of Basmati rice in India is different from the price in the UK, Saudi Arabia, the USA, etc. One of the major benefits is that you can get the high price of your product in so many countries. Below are some of the benefits of the export business.
- Anyone can start export business who has a registered firm with PAN and current bank account
- The steps and procedure is very simple and easy to follow
- No risk of loss in this business if you have followed the procedure correctly
- Your potential market is 200+ countries and price of your product is different in every country
- Lucrative export incentives offered by government of India
Some Doubts In Export Business
Q. Should I learn the English Language Before Starting Export Business?
Ans. English is not compulsory but little knowledge in English is beneficial. If you know how how to read emails, how to send emails then it is sufficient. There are lots of exporters in India who do not know English and still, they are making living out of the export business.
Q. What if my buyer refuses to make payment for the product which he has received?
Ans. Many products which are being export from India are done in advance payment. If your buyer is willing to pay 25% of the total amount in advance then you have to follow the procedure which has been set up by the government of India. There is an enterprise known as Export Credit Guarantee Corporation, ECGC and if you have exported your product under this enterprise then ECGC will pay you the remaining amount if your buyer has refused to pay or has cheated on you.
Q. How much investment is required in setting up export business in India?
Ans. Export business can be started without investment in India, but you have to follow certain procedures in which very low investment is requir. For example, for the IEC code, you have to invest Rs 250/- only. Similarly, for the formation of an export firm, you have to invest around Rs 15000/-. You can start this business with a very low investment if you are not manufacturing your own product. If you are selling someone’s else produce then you do not have to invest much.
Also Read – How to Find Buyers For Your Export Business
Steps Involved In Starting An Export Business In India
- Register a firm
- Firm name should contain the word “exports” for example, ABCexports Private Limited
- Open a bank account, select a bank which deals in forex exchange(HDFC, ICICI, etc)
- Get Import Export Code(IEC)
- Attach IEC code with your bank account
- Create a website for your firm
- Select a product for export
- Find buyers in international market
Every business needs a business plan. You must create your business plan and layout your future projection accordingly. Essential components of a business plan will include executive summary, mission and vision statement, financial planning, marketing, and growth planning. Follow the business investment template and plan your business accordingly.
The main part of the export business is to find potential buyers in the international market. It is not very difficult to find buyers, you can find them easily if you have a website registered in various portals such as Trade India, Alibaba, etc. We will discuss the topic of finding potential buyers in the next part of this article. Also, in the next section of this article we will discuss how to get import export code, also known as IEC code.