It is the 21st century a developed world. Today’s world has now been brought closer by the digital and social media. International barriers are disappearing each and every minute. The world is changing. Smart and consumer oriented businesses are now taking over and there will be a need ahead in the future. Understanding this scenario the export businesses are now gaining momentum. People want to reach new borders, continents, etc.
Starting an export business in India is very lucrative. There are many points of profits to consider.
- The money that you receive can be invested and played along with in FOREX Markets
- Discounts and Rebates for participating in various trade fairs and exhibitions
- If you are unsure about the identity of the company get your payment ensured through Export Credit Guarantee Corporation of India(ECGC)
- Packaging credits
- Benefits if you are exporting agricultural products.
Let’s take a quick jump at the topic with a little plotline.
Shree was a young guy with Masters in Economics and 3 years of work experience in his pocket. He was considering running a business. The reason for him to consider so was the whole Digital India and Make in India movement. So he decided to get up and put his shoulder to wheel. SO the first step was to go towards the all prevailing GOOGLE.
So he opened up his laptop and typed the relevant search queries. After a few search queries he came towards Afleo.com. He went on their website. Got their address and decided to visit them. So the following day he started from his home and went into their office where he was greeted by one of the legal consultants. This is how the conversation began:
Shree: I want to start an export firm
Consultant: Okay
Shree: Do I need to get the IEC Code?
Consultant: Yes you need to get the IEC Code
Shree: What are the documents required for IEC Code?
Consultant: Yes, let me guide you. Firstly your PAN Card, cancelled cheque, passport size photo, address proof and digital signature.
Shree: Okay. Any other requirements?
Consultant: No. That’s all.
Shree: Wow! It’s super easy
Consultant: Yes.
Shree: So let’s get it done
Consultant: Definitely!
So this is how it plays out. It’s very easy to start an export business in India. With the above given benefits export business is a very lucrative field to be in. Shree was happy to be at the right place.
They say ‘Where there is a will there is a way’. So after a few decades of struggle he hit gold. Shree was running a major exporting firm. He was a successful man. It was his turn now. He was an authority with many forums of trade and commerce. One day a business journalist decided to meet him. The meeting took place in his swanky office.
Journalist: Hello Sir. Firstly let me congratulate you for all the accolades and the achievements you have received till now.
Shree: Thank You a lot.
Journalist: So to jump right at the topic. What are the basics to consider while starting your export business?
Shree: Firstly you need to have strong and sound knowledge of the product and the market. Then and then only will you be able to survive in the market.
Journalist: That is paramount I guess but what more can you add to this equation considering there are many readers who will be reading this article.
Shree: HAHA! Okay. Let’s not look at the financials. Go beyond that. See what value you will be adding to the market. How your products fit in that respective market? What your target audience thinks about the products you are bringing to them? Are somethings you should also consider.
Journalist: That is nice! So to talk more about trade what products are you exporting to foreign markets and where?
Shree: There are many products we export like handicrafts, Leather, Jewellery, precious stones, organic chemicals to name a few. So leather goes to US, Germany, UK, etc. Handicrafts to US, UK,UAE, etc. Jewellery goes to US, Europe, Japan and China. Precious stones go to US. Export to US almost contributes to 1/4th of the total trade. These are some of the few exports that we do on regular business.
Journalist: What are the opportunities in the export market that young entrepreneurs should look forward to?
Shree: Our government is taking many steps to encourage export trade to foreign countries. Young Entrepreneurs can gain a lot of profit form the trade they do and the profit generated can be invested in Forex markets. Apart from forex trading there are many policies setup through different bodies like APEDA, CEPCI, Coffee Board of India, CHEMEXCIL, etc. These boards will help you by providing the necessary promotion, support and assistance to enter the respective markets.
Journalist: Okay! That is quiet informative. Any words of wisdom at last?
Shree: Be sweet as sugar. Think calmly and have will of steel. Success will definitely be yours.