Export business is very profitable venture and anyone can start this business easily in India. The procedure of exporting any product from India to international market is very simple and whole infrastructure is managed by the government of India.
On the other hand, 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 international market and how to find profitable product to export from India.
Products can be exported from various sea ports in India. Such as, Mumbai port, Kolkata port, Trivendapuram port, Godra port, etc. Government of India has constructed sea ports in every city which is facing the sea. Also, there are some Inland Container Depot(ICD) which is also know as Dry Ports, these dry ports are in city without sea. Some of the cities which has ICD are Pune, Aurangabad, Indore, Bangalore, Gaziabad, etc.
Benefits of Export Business
Export business is very profitable because the price of a particular product in various other countries are different. For example, price of Basmati rice in India is different from the price in UK, Saudi Arabia, USA, etc. One of the major benefit is that you can get high price of your product in so many countries. Below are some of the benefits in 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 English Language Before Starting Export Business?
Ans. English is not required 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 export business.
Q. What if my buyer refuses to make payment of the product which he has received?
Ans. Many products which are being exported 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 setup by the government of India. There is 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 procedure in which very low investment is required. For example, for IEC code, you have to invest Rs 250/- only. Similarly, for the formation of export firm, you have to invest around Rs 15000/-. You can start this business in 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.
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 in export business is to find potential buyers in 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 this topic of finding potential buyers in next part of this article. Also, in next section of this article we will discuss about how to get import export code, also know as IEC code.