According to Commerce Minister Piyush Goyal, India is an emerging export nation - with a record of USD 421.8 Bn in exports during FY 2021. Our exports are also projected to cross USD 1 Tn by 2030. The Indian government has recently signed a free trade agreement with Australia and UAE, and is in the process of signing another with Taiwan and the European Union. These developments showcase the Indian export market’s massive potential, which will no doubt keep growing. All this considered, starting an export business can be very profitable!
Contrary to popular belief, you don’t necessarily require huge capital to start an export business. You just need to know everything about starting a business, investment arrangement, exporting business ideas, rules and regulations of export business, etc.
In this blog, you’ll find all the necessary information you need to start your trade, so read on!
Here are the steps involved in starting a low-investment business:
The first step for any business is to figure out what industry/product to specialise in. There is demand for various products in the international market, but you must be clear about the one you want to target. For this, it’s important to conduct market research about product demand. There are plenty of items with growing global demand that you can choose. Here are a couple of export business ideas:
India’s jewellery is world-renowned for its beauty & versatility. Many NRIs want it despite being away from their home country. Additionally, foreign nationals adore Indian jewellery, keeping its global demand high. Hence, jewellery export is a business idea with huge potential. You can start with a small investment and outsource jewellery from local manufacturers to meet demand. Try both options together for an advantage over competitors!
India’s favourite crispy snack, this is another great product you can start exporting with minimal investment. Believe it or not, more than 100 countries import papad, most of which comes from India! Some other lucrative business ideas for an export-import business are:
Okay, so you’ve decided on the product you want to export after detailed market research on export business ideas. Now, it’s time to draft a business plan: which needs to detail how you plan to send your products to the target country, your products’ price list, etc. Once that’s done, follow these steps to finish off the paperwork, permits & documentation:
Once your business is registered and documents are in place, you can smoothly begin exporting your products. You should register as the sole partner of your small business, as it will help you retain all business rights.
Businesses majorly transact through current accounts, so you must have one for your export business. Choose a current account that allows you to do transactions in foreign currency, which is a prerequisite in an export business.
The next step is to get a Permanent Account Number (PAN) for your business. This is mandatory as per the Income Tax Act, 1961. You can complete this process online.
You need to have an Import-Export Code to ship and import products from other countries. The Directorate-General of Foreign Trade issues a 10-digit card code, which is mandatory to possess for exporting or importing in India.
A Registration cum Membership Certificate can open up new export opportunities by helping you get access to India’s various promotion councils. It is issued by promotion councils and commodity markets for availing facilities under the foreign trade policy. It also helps you avail customs and excise benefits.
You have decided what business you want to do, as well as completed all documentation. Now you must draft a marketing plan, which will be integral to the growth of your business. You should consider marketing your business online through an easily accessible website. This will help you conduct your export business much better.
Consider tying up with foreign e-commerce websites such as Amazon, Shopify, and Meesho to take orders. This will help you to reach a much larger clientele. You can also create your own website on GoDaddy or similar affordable hosting services.
With documentation complete, it’s time to begin your export journey. This is when you must start checking product quality, pricing, and customs details before beginning exports. You can take assistance from export experts to help you in the process. You must also know the inventory cost for your export, helping you assess the overall cost of your business.
Businesses that hold inventory naturally require higher investment, since owners need to factor storage costs and inventory purchases into their overall capital requirement.
However, companies that do not hold inventory have no such large investment requirements - and can be kickstarted with a much lower budget. Thus, evaluate all options carefully before deciding on a business idea.
You may also need a loan for your business, but a problem here is that most banks require collateral for giving loans. You can thus look for other viable options, such as a gold loan, which doesn't have as many stringent requirements.
Gold loans should be one of your primary options, since they require minimal documentation and are simple to obtain. Moreover, you don’t need to have a good credit score to avail of one.
If you’ve decided to take a gold loan, look no further than Indiagold. Indiagold offers loans at very competitive interest rates, with affordable repayment options and no hectic documentation processes.
Visit indiagold.co for more information, get your loan sanctioned hassle-free & get started with your export business today!