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Exports reached USD 32.27 billion in May 2021, increasing from USD 19.05 billion in May 2020, representing a positive 69.35% growth. In India, starting an export business may be incredibly profitable. The question is- How to start an export business in India? Export business can be tricky and tiring. However, if established properly, it can go on to be highly successful. In this blog post, we have discussed steps on how to start export from India, in simple terms.
To start export business in India, follow these steps-
The foremost of all the essential steps to start export business in India is establishing a company. If you want to start export business in India, the first step is to establish and register an organization, a sole proprietorship or a partnership business. Make sure to decide on a name and logo that reflect the vision of your company and is suitable for the global market.
A vital step to start export business in India. A current account must be opened with a bank that is allowed to handle foreign exchange. Choose a trusted and reputed bank.
It is mandatory for every business involved in import and export to acquire a PAN (Permanent Account Number) from the Income Tax Department.
Importer-Exporter Code (IEC), is a unique 10-digit alphanumeric code assigned to an entity based on its PAN. According to India's Foreign Trade Policy, IEC Number is required for international trade. Unless explicitly excluded, no business or individual can import or export without an IEC Number.
A Registration-cum-Membership Certificate (RCMC) is required under the Foreign Trade Policy in order to obtain permission to import/export and to receive benefits or concessions under the policy. Having the certificate might also assist exporters in obtaining Customs and Excise advantages. This is provided by the relevant Export Promotion Councils/FIEO/Commodity Boards/Agencies.
Before selecting a product and its target country, ensure that it is not on the forbidden or restricted list. Except for a few goods on the prohibited list, all products are freely exportable. Before deciding on a product, thoroughly research the market trends. After doing detailed research on market size, competitors, production standards, payment conditions, and so on, a country should be chosen. Exporters can also assess markets based on the FTP export incentives provided to certain nations.
Participation in trade shows, buyer-seller meetings, exhibits, and online surfing are all good ways to discover buyers. Creating a customer-centric website with an eye-catching product catalog, pricing, payment options, company description, contact details, and other relevant information would also be beneficial.
Now, all this may sound a bit exhausting and challenging. This is where the B2B portals will come to your rescue. Great B2B trade portals will make this step easy for you. Global Trade Plaza is one of the fastest-growing online B2B trade portals with a wide marketplace. They offer a plethora of services to their clients including services such as website development, banner advertisement, lead generation, digital marketing, etc. Such services will bring active buyers to your company.
Providing tailored samples to meet the needs of foreign clients aids in the acquisition of export growth. According to the Foreign Trade Policy, exports of genuine trade and technical specimens of freely exportable products are unlimited.
It is one of the most vital steps to start export business in India. In light of global competition, product price is critical in attracting buyers' focus and increasing sales. The purpose of having export costs should be to sell the most amount at the lowest possible price while maintaining the highest possible gross profit. Be willing to negotiate in order to secure a successful transaction.
There are various financial risks involved in international trading including non-payment by buyers. These risks can be avoided or covered by an adequate policy from Export Credit Guarantee Corporation Ltd (ECGC).
It is not easy to establish and start export business in India, we suggest you put dedicated efforts and research work into it. Steps like finding buyers and approaching them can be tricky. We suggest you take the help of experts like Global Trade Plaza at every step.