Learn Exporting Business From India
Export Business is a process of shipping goods from India to overseas. India manufactures many goods for the domestic market as well as for the International Market. Moving goods from the territory of India to outside is called the act of export.
The process of exports involves many steps and we will discuss those steps in this blog.
Export business in India is a very nice field to work around. It has some challenges but it is also very interesting and it gives you a good opportunity to earn money.
When you start exporting goods from India to overseas buyers, it will not only give you the opportunity to earn money for you but it also gives you the good chance to participate in the growth of the economy for your country.
Exporting goods from India attracts inward remittance of foreign currencies specially dollars that increases the foreign currency reserve which is vital to a nation’s economy well – being.
What is the Export
Export of goods is to ship goods from India to foreign buyers for payments in foreign currencies.
There are various products that you can export from India and make good profit from it. You need some licenses and registrations with the government to start exporting.
You need a business name, GSTIN registration, PAN and IEC Code. Once you are done with these registration, you need to register an AD code at Port from where you need to send the goods outside India.
I will explain all these terms in detail in my next blog. Please keep coming on my blog to read the latest and useful topics on exports.
The question in your mind comes whether to export all the products made in India and you need to choose one product to export.
I would highly recommend you to choose one product for export before you start exporting and stick to that product.
Best products for export business from India
The next question in your mind is what product to start with and what is the demand of that product.
You can do some research and check export data of all products being exported and choose one that falls under the range of your products.
You must avoid picking products which are exported the most but you have no access to that product and you have no good understanding of those goods.
I am listing down the best to export from India. I have taken only 10 top products which are exported from India as following;
1- Mineral Fuels, Mineral Oils and the related products
2- Fertilizers
3- Iron and Steel, Aluminium and Articles thereof
4- Nuclear reactors, Boilers, Machinery and vehicles
5- Sugar and Sugar confectionery
6- Zinc and its related products
7- Clothes and textiles
8- Edible Vegetable and edible oils
9- Leather and Rubber Items
10- Footwear and Gaiters
You need to conduct more research on the goods mentioned above and refine which is more suitable for you to start exporting.
How to export from India to other Country
Before you start exporting, prepare your checklist for the things to be ready in place to start exporting hussle free.
- Choose the product
- Name your business
- Get GST registered
- Get PAN issued
- Get IEC issued by DGFT
- Open at least one current account with a nationalized bank to operate a business account hassle free.
- Please note, you need to choose an export friendly bank that cooperates with you to provide the letters for few registrations as and when required and also it provides the best exchange rate once the foreign remittance is received. You need to be careful on this point as few banks will eat your money once you get the foreign remittance and you will end up losing by getting the lower exchange rate.
- Get the AD code registered at Indian Sea Port / ICD / Airport. You need to get AD code registered at least at one port to export and I recommend you to register AD code at one Sea Port if the goods are to be exported by sea and then you may registered AD code at various ports you might be thing to export from but do it after one or two shipments once you will have some experience in hand.
Once you are done with the above activities, you are good to go ahead and start the best thing to export from India and meet your target and fulfill your wishes.
Largest Export from India to which Country
The answer to this point depends on the product that you are going to export. Importing countries import different goods from India and a particular country would be the largest importer of that particular product from India that would be exporting the most.
As I have indicated the top products exported from India under Best products to export from India, I bring to your notice the the largest importing countries from India for those products and they are;
Namibia
Kuwait
Vanuatu
Burundi Swaziland
Kenya
Chad
Bahrain
Bulgaria
Bahamas
Tongo
Niger
Belarus
Gabon
Israel
Ukraine
Norway
South Africa
Colombia
Georgia
Bangladesh
Yemen
Macedonia
Côte d ivoire
Democratic people’s republic of Korea
Malawi
Kyrgyzstan
Togo
Eritrea
Slovenia
Senegal
Trinidad and Tobago
Honduras
Latvia
Czech republic
Mayanmar
Portugal
Many more countries are importing above products from India and the ones mentioned above are notable countries and you will have a fair idea which country you need to target to export your products to.
How to Find Buyers for Export from India
This is a very important point to know as this is the ultimate goal of finding buyers for your products to export.
This topic is a very lengthy topic to discuss to cover all the areas. I will write another blog to cover all the points of the topic. I will point out a few things here that you will have some idea how to find buyers for your product to export in brief.
There are two ways to find buyers for your products to export
1- Free services
2- Paid Services
If you start your export business with minimum investment, you will be hesitant to spend more on paid services to find buyers.
You have nothing to worry about as you have a good advantage in India to use a website for free to find buyers which is TradeMap.
You need to create a login id and password for free and you can access the export data being done from India to overseas and also you can access the list importers that are buying products from India.
Services provided by Trade Map are free for Indian exporters while this is paid to developed countries.
You as an Indian will explore this opportunity and find markets and buyers for your products with the help of Trade Map.
I will write down more details on TradeMap explaining each and every point in coming blogs. You are requested to keep visiting my blog for the updates.
If you can afford to take the subscription, I recommend you to buy export custom data of your product and find out who are the customers importing the same products from Indian Exporters and you can target them by giving the quality products at attractive prices.
You can also register your company name on IndiaMart under Export Category and you will start getting leads of foreign buyers.
I have done many exports to many buyers that I have found with the help of IndiaMart.
As for the paid services, you need to do your own research as these services are expensive and you take services only when you have gained some knowledge and understanding for export.
As a beginner, Trade Map and directories available on the internet will be sufficient for you to start with for experiment.
Documents for export from India
As an exporter, you need to know what all the documentation is involved in the export process.
You need the following necessary documents related to export as following
1- Commercial Invoice
2- Packing List
3- Shipping Bills
4- Bill of Lading
These four documents are mandatory for any export to be done by you. Apart from this there are various documents to be required depending on Importing Countries and exported goods.
You can read more details about this
How Much Exporter Earn in India
You might be thinking about how much money you can earn while exporting goods to overseas buyers. Is Exporting from India profitable for you?
The answer is Yes, it is profitable for you to export from India and you can earn a lot of money you can earn in exports but you have to follow the correct procedure such as choosing the right products, right market, right pricing and the right buyers.
I will recommend you to focus on choosing the right product and provide the value to the buyer and you will end up earning handsome money in exports.
What is India famous for?
As for export from India, India is mainly known as an exporter of various products but India is known as good at exporting Textile, Pharma Products, Agriculture products and Construction Equipment.
Conclusion
Exporting from India to overseas is not only good for you but it is also good for the growth of the Country’s economy.
Start export business from India and get ready all the registrations before you start exporting. You need to plan well by choosing the product, target Market and potential buyers for your products and jump into it and start exploring. As much as you explore, you will have more ideas, more confidence and more export business.