The Indian market is one of the most thriving and economically sustainable markets. India’s strategic location and its low cost of production of high-value products have expanded its trading platform. Well calculated and profitable import-export business ideas help expand a brand into a global market through trade. The major strength of the export business in India lies in its production strength. According to the Economic Survey 2019-2020, 14% of the total export from India is of petroleum products, making it the most prominent export item. This is followed by the export of precious gems that stands at 7.87% of the total export.
This guide will give insight into some of the best items to export from India. Along with that, it details how to start import-export business in India. The export-import business is complicated and requires a lot of regulation and guidelines. Here is a thorough guide on the import-export scenario and business setup.
How to Start Import and Export Business In India?
The first step for starting the business is registration and obtaining all the necessary permits for conducting overseas trading. However, an import-export business plan with the expected export percentage is crucial to analyse the viability of the business. Before applying for the permit, make sure to do thorough market research on the target markets to evaluate the prospect and demand. Here are three essentials points to focus on before starting the business:
- The choice of the product is extremely crucial. Make sure to study the trend of export and import. The best products to export from India are those that have high demand in the overseas market.
- Do a thorough market analysis to understand the demand for the product. Look out for competitors and identify the target demographics overseas.
- Maintain transparency in the business by clearly mentioning payment terms and currency used for conducting the transactions.
- Identify the best mode for transportation and shipping for the products. Sea route is the most profitable and cost-effective for bulk product export.
What are the Top Items Exported from India?
There is a different category of items that are exported from India to different locations. Some exports have high-end profits and are conducted in sync with government authorities, whereas some exports are easy to manage and perfect for small to large enterprises. Here are some of the best export business ideas for better profits.
- Textiles: India has a huge textile market and is one of the biggest exporters of textile and apparels. The export includes both ready-made garments and raw material. There is a huge demand for cotton yarn fabric, with India being one of the largest producers of cotton and the USA, China, Spain, and Japan being major importers. Silk is also high in demand for export. The low labour cost makes the ready-made garments one of the best products to export from India.
- Food and Beverages: Beverages like Tea and Coffee are two of the best products to export from India with massive annual production. India is one of the largest producers of tea and the 6th largest coffee producer. Sugar export from India is quite profitable as it is free with DGFT registration. India's organic and processed food market is enormous and makes one of India's best export items.
- Leather Products: There is a considerable demand for leather products like jackets, purses, boots, bags etc., and they will never go out of style. India is one of the biggest leather producers, and the export of leather products from India is in high demand. Fashionable leather products and accessories are a great export business idea. The markets of the US, UK and Germany are the biggest importers of leather.
- Spices: Indian Spices are famous worldwide. With the increase in demand for organic spices for food preparation and traditional cooking practices, spice export is a long term profitable business. Spices of all types and dry herbs have great demand making them one of the long-standing export materials.
- Handicraft Items: The regional handicraft from India has gained worldwide popularity for its diverse cultural significance. Starting a local, regional handicraft business and export of the finished goods is profitable with a low cost of production. The local artisans create items at a reasonable rate, and exporting such items has a huge profit margin. The demand for native handicrafts from India is high with its rich cultural connotation.
- Precious Gemstone and Jewellery: India is one of the largest exporters of gemstones and jewellery across the globe. India has one of the largest markets for diamonds with modern techniques for diamond cutting and polishing. India exports gemstone majorly to the US, Japan, Europe, Hong Kong, the Middle East, and China. Apart from gemstones, even readymade jewellery in the form of pendants, necklaces, chains, earrings, rings is exported from India.
- Petroleum Products: India has many petroleum and oil refineries producing a massive quantity of oil. It is one of the most profitable and high earning import and export business ideas with the export of a wide range of oil-based products. The companies like Bharat Petroleum, ONGC, and Hindustan Petroleum are the major players involved in export.
- Pharmaceuticals: India ranks as the 10th largest exporter for pharmaceutical exporters across the globe. The low-cost labour and easy availability of raw material help in the bulk production of medicines, increasing the export. According to data by Pharmaceuticals Export Data, the USA is the largest importer of pharmaceutical products from India. The major pharmaceutical exporter companies in India include Dr Reddy’s Lab, Sun Pharma, Lupin, Ranbaxy, Zydus Cadila, Aurobindo Pharma etc.
- Electronic Products: India's cheap labour is one reason why electronic products (assembled) are more affordable and largely exported. Although the electronic market and export are not as huge as products like petroleum, textile, jewellery, it contributes significantly to the economy of the country. The top importer of electronic products from India is UAE and USA. The cost-effectiveness and technological advancement make India a good destination for electronics.
Why Start an Import and Export Business?
India as a country offers tremendous opportunities for trading business. Several successful small and medium enterprises in the country have made profits and expanded to the global market by venturing into the import-export business model. It is easy and affordable to source raw material and focuses on mass production for export with inexpensive labour. A solid import export business plan helps with the expansion of trade boundaries. Obtaining a license for the business allows you to sell products to businesses or clients abroad. It is a highly profitable business because of the low cost of production and high margin on the commission.
1) How to start an export business in Kerala?
2) Which Are the Best Items to Export from Tamil Nadu?
3) How to Start A Small-Scale Essential Oil Extraction Business?
4) How to get started with the food processing business?
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Q. What are some of the best items to export from India for small industries?
Ans. Some of the best export items for small industries in India include organic food, processed food, readymade garments, fertiliser, fashion jewellery, tea, handicraft items, and spice. A business does not need to be big for starting an export-import business.
Q. Are export business ideas profitable?
Ans. Yes, it is profitable, but it depends on the product. Before starting the business, it is important to select the product carefully, target a suitable market (country) where the product has high demand, and know the country-specific guidelines. The business is profitable as it gives a global trading platform.
Q. Which countries do India Export to the most?
Ans. According to reports, by 2019 -2020 India did the maximum export business with the United States of America. This was followed by UAE, China, and Hong Kong.
Q. Why is India one of the best countries for Export Business?
Ans. India is one of the most powerful and upcoming global economies. The easy and affordable access to raw material, cheap labour, and cost-effective production of many products to cater to the growing demand make India one of the best countries for trading.