Import-Export Startup a Dawn of Hope for Export & Import Business in India.
The ecosystem of export-import business in India is vast and India is the 14th largest exporter in the world, exporting a wide range of goods and services.
In this blog we provide you with a guide to set up Startup business in Import & Export for entrepreneurs who are considering venturing into import-export business.
This is the right time as the Government has provided enough compliance norm that eases way of doing business and expand the foreign trade through import-export business with more participation from new age startup and entrepreneurs.
There is a new hope amongst the exporters and importers as well for those who want to embark on journey of entrepreneurship in becoming Startups in Exports and Imports.
India’s exports are growing each year and in a recent report by HSBC, India is set to be among the top 5 exporters in the world by the year 2030.
A startup is a new entry and can have enough gains from the MAI scheme i.e. Made in India scheme, to stimulate export business.
Digitization has amplified the ways of doing business in Indian start up scene with introduction of technology, exploring new markets and goods and governments policies that are supporting.
The MAI Scheme a Hope for Importers-Exporter Startup
The Made in India initiative strengthens India’s position globally in international market. There is enough focus by the government to ease the way of doing business specifically for start-up’s and new age exporters. They have zeal and passion to shape up the future of import and export both and bring in new ideas that can move Indian in the pedestal of foreign trade.
That is where MAI scheme brings in to provide financial support for the exporters, collaboration with industry stake holders and help in understanding the pattern of goods that can be exported that were not done till date and having an overview knowledge about foreign trade and core activities.
Further the The MAI Scheme laid in the year 2021 will play a catalytic role to promote exports of Indian goods and services by providing financial support to eligible agencies to undertake necessary initiatives and projects.
Key challenges in Export Import business:
Key challenges in export import business may include currency fluctuations, customs regulations, logistics, finding reliable suppliers, and international market fluctuations. Finding a reliable supplier who can provide authenticated goods for export may be a challenge at time and if quality is compromised this can harm the business for long term.
A comprehensive Guide towards starting your import-export venture
Here is a comprehensive guide for starting your import-export venture where licenses and registrations required to start an export business in India.
- This includes necessary documentation, legal requirements, FAQ etc
How to start an Import-Export Business in India; Guide
Primary step is doing a thorough market research to identify lucrative product niches, target markets, and understanding competitor’s mind-set provides ample knowledge to establish a business.
Having a Business Plan that can outline core objectives, focusing on target market, knowledge about sourcing strategies, pricing and regulation and marketing strategies.
After the plan has been put in place the registration of a company form an important part for any business entity as per the legal requirements. One can choose from various options such as sole proprietorship, partnership or private limited company.
Applying for Importer-Exporter Code (IEC) form a major step for business set up for exporters and importers where obtaining Code of IEC from the Directorate General of Foreign Trade (DGFT which is mandatory in foreign trade. An IEC is a 10-digit code issued by the DGFT, which is mandatory for anyone engaged in import-export activities.
Product categories: In this point product categories are determined, one intends to trade in. It is important to obtain necessary certifications or licenses, such as FSSAI for food products or BIS for certain items etc. This is done to clear the quality check that is required to trade in.
Developing a robust marketing and sales strategy remains important to promote products in target markets, both domestically and internationally.
The last step includes Identifying reliable suppliers or manufacturers for your chosen products, both domestically and internationally so that business doesn’t come under scanner.
Read our interviews: An Interview with Kanav Agnihotri, Creator of ‘The Adventures of Super Sharkaru’ – Founderlabs
Required Documentation for export & Import Business
- It is important to familiarize with export documentation requirements, including commercial invoices; packing lists, shipping bills, and certificates of origin.
- For importers it is required to understand the import procedures and documentation required, such as bill of entry, customs clearance and important duties.
- To ensure smooth transportation the logistics and shipping arrangements needs to be in proper flow to ensure smooth transportation of goods from their source to destination.
Conclusion
Starting an import-export business in India offers ample opportunities for growth. This also represents the idea of earning and having a profitable business set up.
A guided step will ensure all FAQs one requires to embark to become a successful importer-exporter in the ever evolving and expanding business landscape of the Indian continent.
Initiative taken by government to increase footprint in foreign trade through start-ups will support micro, small and medium enterprises to enter export market. It is important to nurture innovation; developing trade and market intelligence; building appropriate skill set; addressing the interventions required towards exploring new markets abroad.
With the Indian Government aggressively promoting manufacturing in India through campaigns like Make in India, exports from India is set to grow at a fast pace over the coming decade.
