The import and export business is a highly lucrative one that can yield great profits. But you need to follow the rules and regulations and adhere to them. Import and export is a very complex business, which involves many roles. It is not a single person’s job. You need employees for different departments like sales, marketing, finance, packing, shipping, and logistics.
In this article, we will give you an idea of how to start an import-export businessin India by discussing various aspects of it.
Import & Export Business in India – An Overview
India has always been a country of entrepreneurs and business owners. Every individual in this country is keen to be a successful entrepreneur. The import-export business is one such segment that has immense potential for profit and is being chosen by many.
The government of India provides numerous schemes and opportunities to budding entrepreneurs who wish to start an export-import business in the country. There are no special prerequisites required to start an import-export business. If you are willing to spend some time on it, have the necessary amount of capital investment, and have a basic knowledge about various customs procedures, you are good to go! You need to have an idea about some legal formalities like registration etc., but that’s all there is to it!
India imports more than $400 billion worth of goods every year from other countries across the globe. Some of the major products that are imported into the country include machinery, transport equipment, pharmaceuticals, electronic products, petroleum products
India’s foreign trade comprises both exports and imports. Exports from India stood at US$ 25.00 billion, while imports were US$ 35.00 billion during April-August 2011-12. The major commodities exported include petroleum products, textiles, gems and jewelry, engineering goods and chemicals, and pharmaceuticals. The major commodities imported include crude oil and petroleum products, pearls and precious stones, electronics goods, gold, etc.
India’s exports grew at 39.6 percent in April-August 2011-12 over the same period last year to US$ 25.00 billion whereas its imports increased by 7.7 percent to US$ 35.00 billion during the same period as per the data released by the Ministry of Commerce & Industry. The export business growth was driven by a pick-up in demand for Indian goods from European Union (EU) countries and the USA as well as other emerging markets like China, Brazil, and Russia after a slowdown in global trade during 2009 due to economic slowdown across the world.
How to start an import & export business in India
Registration as an importer-exporter. For import, an importer has to apply for Importer Exporter Code (IEC) to the Regional Authority. It is a 10-digit number that is allotted by the Director-General of Foreign Trade. Similarly, for export, the exporter can apply for IEC from the Regional Authority under the Ministry of Commerce and Industry, Department of Commerce.
The Indian exporter would have to get his product registered with the Director-General of Foreign Trade, who issues a Certificate of Origin to the overseas buyer. Once received, the foreign buyer would submit his documents along with the Certificate of Origin to his own country’s customs authorities. These documents are used to clear goods at the port/airport and calculate import duty upon arrival in India.
Benefits of starting an import and export business in India
Starting an importer exporter business is one of the most exciting yet challenging things you can do. But before you start, it’s important to understand what you’re getting yourself into.
Import and export businesses present opportunities for entrepreneurs who are interested in international trade. The import and export industry is a great career choice for those who want to work with people from all over the world, speak different languages, and become experts in logistics, shipping, and supply chain management.
Importing goods into India is free as long as it comes under the free trade agreement or the goods are on the list of duty-free goods maintained by the Indian government.
The Government of India provides several benefits to new entrepreneurs in the import & export industry:
You don’t need any license to start this business, only if your goods are restricted or prohibited, then certain licenses will be required.
You can start this business from home without any requirement for an office space.
The initial investment required is also very less.
Huge market potential: As one of the largest economies in the world, India has a large market for you to tap into.
High growth: Exports from India grew over 14 percent in 2017-18 to $303 billion whereas imports grew by about 20 percent to reach $441 billion.
Low risk: You can start an import or export business without having to invest much money.
Ease of doing business: You can get all your licenses online from the comfort of your home!
Opportunities of import export business in India
According to the Department of Commerce, Ministry of Commerce and Industry, Government of India, the foreign trade of India has increased from $200 billion (USD) in 2010-11 to $591.64 billion in 2015-16. The Indian export sector has played a significant role in the country’s economic growth.
The import and export business provides lucrative opportunities for entrepreneurs who wish to start their own businesses.
Import/Export Business Opportunities in India
India’s import and export system is governed by the Foreign Trade (Development and Regulation) Act of 1992 and India’s Export-Import (EXIM) Policy. The Directorate General of Foreign Trade (DGFT) organization is an attached office of the Ministry of Commerce and Industry and is responsible for formulating and implementing the foreign trade policy with the main objective of promoting exports through various measures.
The following are some excellent opportunities in India’s import/export sector:
Export: Agricultural products, minerals, chemicals, iron & steel, textiles, etc.;
Import: Petroleum products, electronics goods, edible oil, etc
Import and export through Tradologie.com
Tradologie.com is one of the largest online B2B marketplaces for international trade. We connect buyers and suppliers from all over the world and facilitate their business transactions.
We make it easy for you to import and export goods through our online platform, which is specifically designed to cater to your business needs. For example, if you are looking for an importer/exporter in a particular country, Tradologie.com can help you find it with just a few clicks.
You can also use Tradologie.com to expand your business across the world. Our portal is available in multiple languages, which enables us to sell internationally and get more exposure to your products and services. If you want to become a supplier on our platform, we will help you take the first step towards becoming an international exporter by setting up your product catalogs on our website so that buyers from around the globe can easily find them there.
With over 500 thousand buyers on our platform, you can count on Tradologie.com to help you reach new markets and customers all over the world!