Tag: EXPORT Business

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Business motivation

4 Import-Export Business Ideas To Start In India

4 Import-Export Business Ideas To Start In India
4 Import-Export Business Ideas To Start In India

Businesses in India have a specific advantage when it comes to exporting because they have various mediums to minimize production costs and maximize profits. And, expanding into the global market is the best way to build brand recognition, scale business and boost profits.

India is a great place for small and medium enterprises to start an export business for several reasons. And, the reason is that they have access to inexpensive labor and materials. India has a wide variety of natural resources which makes it convenient to source raw materials for production.

If you want to start an export business, here are 5 products you can export from India:

1. CLOTHING

India has one of the largest textiles and apparel industries in the world. The main reason behind it is because India has strengths across the entire value chain from fiber, fabric to apparel yarn and has competitive manufacturing costs.

One of the most important cash crops in India is cotton which is an important raw material for a lot of clothing manufacturing. Currently, it contributes to 12% of the country`s export earnings. Why it is more profitable today is because the global demand for clothing has increased and people are spending more on different types of clothes. Athletic clothing, loungewear, and pajamas are currently very popular because people want to be comfortable as they work from home. Comfortable shoes are also a must.

People are still buying clothes that are meant to wear outside of the house, but once offices, restaurants, bars, clubs, and borders reopen, the demand for this type of clothes will likely slowly rise again.

2. JEWELRY

Since India is the land of so Kohinoor, many minerals and gemstones are found here. Gold, copper, and garnet are some of the most common precious materials found in India.

India produces large quantities of diamonds since the land is so rich in coal. Although diamonds are not rare gemstones, they generally come with a hefty price tag.

India primarily exports jewelry to the United States, China, Japan, and countries in Europe. By November 2020, nearly 25% of India’s jewelry and gemstone exports went to the United States.

3. RAW INGREDIENTS

Thanks to the country`s suitable climate, sugarcane and rice are two cash crops of India. These two crops require a specific climate to grow hence they can be harvested and can be sold as raw ingredients anywhere in the world that doesn’t have a suitable climate.

One more reason is that these two raw materials have a decent shelf life, so transporting them is also not that difficult. One thing that you will have to ensure is the storage. To store the raw materials in containers that will safeguard them from bugs, rodents, or other creatures.

Though Sugar and Rice are not easily spoiled and can be consumed, you need to keep them fresh and clean. Also, check with federal regulations of where you are exporting to. Also, ensure that you are following the guidelines.

4. PHARMACEUTICALS

Pharmaceuticals are crucial as ever since we are amid a pandemic and people around the globe are growing unhealthy.  Additional drugs and supplies are necessary for treating the symptoms of COVID-19 patients. Ventilators and other life-sustaining equipment are in high demand.

Aside from COVID-19, diabetes is posing a major issue around the world. Some of this disease is caused by genetic factors, but it is exasperated by unhealthy lifestyles and diets. When people do not manage it, they need specialized drugs, insulin, and tools for checking their blood sugar. The insulin alone demands the need for a variety of syringes, ports, and more. Diabetes is simply one health issue that is increasing the demand for pharmaceuticals. Heart disease, cancer, respiratory diseases, and other chronic conditions are on the rise.

These are a few small business ideas for export businesses that MSMEs can start. You can boost your sales easily with the right guidance of a business expert.  Learn to generate high revenue earning products for sales, generate payment links for customers, managing account-related details. Solve your problems in just one click: https://www.badabusiness.com/psc

Categories
Business motivation

9 Things To Consider Before Starting A Small Export Business In India

9 Things to Consider Before Starting a Small Export Business in India
9 Things to Consider Before Starting a Small Export Business in India

Exporting a wide range of goods and services, India is the 14th largest exporter in the world. According to a recent report by HSBC, India is set to become one of the top 5 exporters in the world by the year 2030. As the country has embraced the concept of ‘Make in India’, exports from India are set to take a speedy course and will contribute to the GDP of the country.

The government of India has always been a great supporter of exports, but the pandemic has opened a new opportunity for aspiring small business owners who wish to start their ventures in small towns. The widespread use of the internet has also helped the export and import business to flourish.

If you are planning to start your own export business in India, you can attend our Free Masterclass by Dr. Ajay Sahai, Director General & CEO, FIEO. You can download the Bada Business Community APP to attend the class on February 22nd, 2022, Tuesday at 6:00 PM.

Here are nine things you must know if you are thinking about starting an export business:

1. Select Product

If you have already thought about the item you want to import-export then it is okay. Otherwise, some products are prohibited from being exported. So, ensure that your product is not one among them. India is known for mainly exporting agricultural products. You can also select a product in your area and export them by keeping the quality of the product into consideration. It is an important factor in receiving future orders and reviews from customers.

2. Analyze your Target Market

It is very important to understand your target audience when thinking about selecting an export business. Research the market size, quality requirements, competition, payment terms, etc. when you select an overseas market.

You can also enquire about a few export benefits available in the market for a few countries under the Foreign Trade Policy. Export promotion agencies, Indian Missions abroad, and your acquaintances can prove helpful in recognizing the initial market, as well as, expanding it.

3. Select Business Name & Logo

Before you decide to register and look for buyers for your products, you should select a name and logo for your business. You need to think about your business`s name so that you can register it.

4. Registration

Like any legitimate business run in India, you will need to get registered. It could be registered as a sole proprietorship, in partnership, private limited company, or LLP. Hire a lawyer for any legal advice and to help you with the legal proceedings of registering the business.

5. PAN

Businesses must obtain PAN (Permanent Account Number) from the Income Tax Department.

6. Bank Account

Open a current account at any commercial bank that is authorized to deal in Foreign Exchange.

7. Obtain Importer

Exporter Code (IEC) Number An exporter/importer in India is required to obtain an IEC number as per Foreign Trade Policy. It is a key business identification number that can be applied for online at www.dgft.gov.in. After the introduction of GST (goods and service tax), the IEC number is the same as the PAN of the firm.

8. Obtaining RCMC

RCMC (Registration Cum Membership Certificate) is a membership certificate issued for 5 years by Export Promotional Councils (EPCs) or Commodity Boards of India. It is proof that your business has been registered with the council/board and is useful when applying for any benefit or concession under Foreign Trade Policy like duty drawback, duty credit scripts, etc.

9. Get covered through ECGC

Dealing with an overseas client involves risks from the insolvency of the buyer/country. These payment risks can be covered by ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd), a company wholly owned by the Government of India which provides export credit insurance support to Indian exporters under the Ministry of Commerce.

To get in-depth knowledge and information, attend our Masterclass on the Bada Business community app for free.

The idea of managing the business is easier said than done and we completely agree with you. This is why to help you move forward with your business goals, we at Bada Business offer courses like Problem Solving Courses (PSC) & Leadership Funnel Program (LFP Bada Business).

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MSME

Amazon India Helped 2.5 Firms in MSME Sector Go Digital

Online Business| Representational Image (Photo Credits: Pixabay)
Business| Representational Image (Photo Credits: Pixabay)

The e-commerce giant, Amazon India said that it has digitised 2.5 Million micro, small and medium enterprises in the country. The company had last year announced that it will invest $1 Billion to digitally enable 10 Million firms belonging to the MSME sector by 2025. The ongoing pandemic has also pushed several businesses to shift online, as per report, the number of sellers venturing online have increased by 50 per cent since the coronavirus outbreak and the subsequent lockdown.

Not only the MSMEs, the e-commerce platform is increasingly hosting several local shops. Amazon India has a ‘Local Shop Programme’ through which the company aims to brings neighbourhood kirana stores on it’s online marketplace. The programme is said to have gone up around 10 times in the past six months to exceed more than 50,000 offline sellers.

The Indian local and regional language option available on Amazon India’s website has also helped in the increase of sellers to enter the online marketplace. Around one third of the sellers have signed up in local languages mostly Hindi, Tamil, Kannada and Marathi, said Amazon India’s Global Senior Vice President and Country Head Amit Agarwal. MSMEs in Karnataka To Benefit As Amazon India Inks Pact With Karnataka Govt To Increase Their Exports on Global Selling Platform.

Amazon India has also enabled a cumulative exports of $3 Billion under its Global Selling programme. Over 70,000 businesses are currently a part of this initiative by the e-commerce giant. The firm has also created around 7,00,000 employment opportunities until last year and added 3,00,000 more jobs during the preceding year, generating a total of 1 Million job opportunities in the country. Amazon India & CII Sign MoU to Help MSMEs Adopt E-Commerce & Digitisation of Business.

Recently, the firm had inked an agreement with the Karnataka industries and commerce department to help MSMEs in the state in increasing their exports on its global selling platform. Under this Amazon will be able to train and onboard MSMEs across the state on its global selling platform for driving their exports to customers in 200 countries the world over. The e-commerce giant’s platform lowers entry barriers for firms in MSME sector to expand their business on a global level.