Importing and exporting goods and services has evolved tremendously over the past few years. It is a very lucrative business and considered profitable because of the high demand for goods and services in international and domestic markets. Many entrepreneurs and small start-ups or ventures opt for import-export business because it generates more profits.
The ‘Make in India’ campaign can help raise the export market share. You can integrate it into your export strategy to enhance the export shares. This article shall cover the various ins and outs of an import-export business plan and how to start an import-export business.
How to Start an Import-Export Business?
Want to know how to start an import-export business from home? Read the points mentioned below. The steps to start an import-export business are as follows:
1. Business Set-up: The first step is to have a business setup. It is advisable to have single ownership initially by registering for GSTIN with a catchy name and logo. Once you have registered, you will need to obtain a PAN card from the Income Tax department.
2. Open a business bank account: You will need to open a current bank account exclusively for all transactions within your business. Except in the case of restricted or prohibited products or services, you will need an Import Export Code (IEC). The website of the Directorate General of Foreign Trade can provide an online application for the registration of IEC.
3. Export-Import Code (IEC): There are some documents you need to obtain an Export-Import Code (IEC). First, you will need a PAN card of the company and a copy of a cancelled check from the current account of the enterprise. Only one IEC is allocated to each PAN card. Then, you must receive the IEC from the relevant Export Promotion Boards to obtain an import and export authorisation and an RCMC (Registration Cum Membership Certificate). There are approximately 26 boards for export promotion to get an RCMC.
4. Create a website: A networked import/export company cannot exist without a website or a forum. Get yourself a platform that will allow you to establish an online presence and expand your business. To increase profits for your international business, you must balance the flow of communication, sell goods online (or offline), and expand your consumer base.
5. Start the business: After receiving the IEC and RCMC and creating a website, you can start your import and export business in India. The release of IEC and RCMC usually take five to seven days to complete and apply to all branches/business premises across India. It Is recommended to seek advice from a lawyer, banker, and accountant to start a virtual import/export company and keep it in the best legal and financial shape possible.
Import and Export Business Ideas
Importing and exporting goods and services is an essential part of a country's economy; a country’s economy cannot develop independently without foreign trade. Once one has gained experience in import and export, there are many import-export business opportunities to pursue. Some of the best import-export business ideas are as follows:
Export Business Ideas:
1. Online Retail:
Amazon, Alibaba, Aliexpress, DHGate and other online markets have been the norm for a while now. Exporting companies can register as vendors and communicate with consumers worldwide. The internet serves as a means of bridging the distance between exporters and consumers.
2. Niche Markets:
Niche market exporting is another way to export goods and services. Each country has its tradition and culture. So, there is a huge demand for the country's handicrafts products in the market. It is highly profitable but riskier at the same time. A niche market does not mean a small market. It targets a specific audience with specific products and offerings.
For example, different clothing trends and shoe designs. All the clothes don't target women in general, but specific women who will wear them. Another example is gym clothing. Gym clothing is made specifically for people interested in fitness and health and working out regularly.
3. Clothing business:
The clothing business is another best export business idea to start in India. If you develop a knack for monitoring trends or even detecting future trends, you can increase your chances of choosing a winner. Starting at ground level and importing or selling a commodity before it becomes a national best-seller might be a once-in-a-lifetime opportunity.
4. Jewellery business:
The jewellery business is a good export business idea to start. Jewellery is in high demand in India as it is used in various traditions and cultures. It is a profitable business idea, and you can start it from your home and do not require a large space.
Import business ideas
There are several product possibilities to consider for import:
5. Leather products:
India has been exporting leather products such as handbags, wallets, toys and belts for years. Many small and medium-sized enterprises have been doing well in this sector already. India quickly became a major global medical device supplier, and Indian manufacturers have earned a reputation for quality and trustworthiness.
6. Medical supplies:
Medical supplies are different in different countries. It is essential to diversify the range of medical supplies and adopt technologically advanced medicines to treat various diseases. So, importing medical supplies can be highly beneficial because India has some of the best medical supplies in the world.
The use of electronic items has increased immensely over the past decades. Each year, Indians import electronics items worth billions of dollars. The demand is growing every day. So, it is a perfect import business idea to start in India.
8. Heavy machinery:
Machinery is another excellent import business idea. Heavy machinery is used for construction and industrialisation. The majority of the heavy machinery is imported from Japan and China to India.
When you make a sale, your relationship with your overseas customer should not end. It necessitates more of your attention. Consider your after-sales support for your import/export business to be an essential component of your product or service offering. OkCredit makes all of your business tasks easier to manage, helping you keep your energy focused on turning profits.
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FAQs on Import-Export Business Ideas
Q. Is the import-export business profitable?
Ans. The import/export business is a lucrative one. Because of the low overhead, you keep the majority of the commission money. Building a truly profitable business, on the other hand, requires dedication and a thorough understanding of the industry. You'll need a lot of people who know you, respect you, and who can recommend your work.
Q. Which products are exported the most from India?
Ans. The top products that are exported from India include pharma drugs, petroleum products, tea, spices, tobacco, iron, steel, precious stones, gold, etc.
Q. What is the initial cost of starting an import-export business in India?
Ans. The process of setting up an import-export business in India involves INR 65,000 to INR 70,000 as an initial investment. It increases as you expand your business. The cost also depends on the location and scale of the business.
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