The Trade World of Import and export business has been booming. Ever since the invention of new technologies, which gets you everything quickly in the palm of your hand. We can easily reach everywhere.
Suppose you have an executive plan of import and export ideas to start as a business in India. Then you should plan and follow the guidelines properly.
People are crazy about imported items in India. So starting this business can be a Lucrative idea for you.
But many are not aware of– How to start this import and export business. One of the tricky parts about this business.
It is about choosing the right product. But no worries as we have listed out the top import-export business ideas in India.
We have also mentioned the complete process of starting an import-export business to understand the actual foreign trade and market map.
All these types of import-export business ideas in India have proven to be profitable.
How to start an import-export business in India?
The Indian market has a booming demand for import and export items owing to its consumption. India has potential entrepreneurs who are keen on dealing with these opportunities and zeal to go after them.
The Directorate General of Foreign Trade (DGFT) manages and controls the foreign trade in India. To start this business, an IEC code and license is required. Some of the steps are below.
- Firstly the company should be registered with a company name and file. To be required forms to the ministry of corporate affairs. You can go for partnership, sole proprietorship, or a limited company.
- After approval of registration, open a Current Bank account to deal in foreign currency.
- After finishing the above rules, apply for the IEC Code. It is essential to have this code as this ten-digit number is required to start an import and export business.
- Apply for this number online at the DGFT website. Upload the necessary bank details and identity Details with the address of proof of the firm.
- Once you receive the IEC number. Apply to register for cum membership certificate. It is required to avail authorization of import-export and other concessions.
Why start the import-export business in India?
India has access to a vast number of raw materials and inexpensive labour. It has a wide range of natural resources to start this import and export business. India is a heaven if you are starting this business and exploring it to a greater extent.
Things to consider before starting import and export business:
Here are some of the things to consider related to business plans. After getting the necessary permissions and licenses. Here are the points to note down to start this business operation.
Selecting of Right Product:
It is the first thing to consider in this business. The selection of the right product depends upon your wise decision. Follow the import and export trend and do some research and study well. As all the items are exportable, leaving few of them restricted. So selecting the right product is necessary for your business.
The second thing to note down is finding the right market potential. You must research the following requirements such as competition, quality, terms and payments etc. Then evaluate based on the data available. Also, you can get some help from the export agencies.
Make use of online websites to generate leads about potential buyers and sellers. After finalizing the right product and market potential. Participating in trade fairs, exhibitions, and other events can help you find buyers. Then they can become sellers across the country.
Work out on forming all the necessary details. Discuss the payment terms in terms of promoting sales because of international competition. Discuss the applicable method of payment that will help in maintaining the transparent business.
The risk coverage associated with this business is about payments. However, you can cover these risks from the appropriate policy of ECGC. It helps protect the risk of non-payment. You can also cover risk by taking insurance.
Top Profitable Import business ideas:
1.Electric machinery and equipment
These are essential tools used for construction and industrialization. The demand for electric machinery and its equipment is booming in India. So you can make it—profitable Import business in this field.
Silk has been a demanding product in North America and European Markets. One can import silk from Asia and India. India is the second-largest silk producer in Asia. You can import from silk carpets, silk garments to Silk waste, Yarns and Fabrics.
Although India has taken the initiative on producing Pharmaceutical medicines, the demand has been high ever since the pandemic. As most industries whose needs have been unfolding yet. So starting this as an import and export business ideas in India has proven to be successful and Lucrative.
4.Iron and Steel
Indian industries still depend on other countries for manufacturing iron and steel. As the country itself doesn’t produce many raw materials of iron and steel. So the Indian manufacturers turned to foreign sources to import these materials.
5.Import of Seafood
In India, tons of a variety of seafood is consumed daily. However, the indigenous suppliers cannot cater to the enormous demand for these products. So starting this business of importing seafood to India is a profitable business.
Top Export business ideas in India:
Although several products in India are exported to other countries, here are a few of them to start a Lucrative business that will flourish your career.
India is the second-largest coffee maker in Asia. 80% of the coffee production is exported from India. So if you are wondering about a Food export business, this can be ideal for you.
2.Cloud-based Service Exports
Foreign countries are looking for software developers at an inexpensive package. So why not become an export cloud-based Service provider to various countries.
Though India is famous for its artisan handicrafts, foreign people are highly interested in getting hand made decorative products. They are in huge demand outside of India. Starting this business can yield a successful income.
India stands as the third-largest producer of crude oil and natural gas in the world. The demand for these minerals fuels is enormous. India has good resources such as coal, limestone, manganese orca, Iron ore etc. These minerals are highly demanded in foreign countries. Suppose you have the help of mineral fuels. You can start this business. But Extracting natural minerals fuels can cost millions of dollars.
Sugar and rice are two types of Raw materials that are produced in abundance in India. These cash crops have a longer shelf value.
So transporting them cannot be a big hurdle for you after harvesting these cash crops. It can be manufactured in any country as a raw material.
It can also be sold to manufacturers that create processed foods. The Government of India has supported sugar and Rice Mills.
So if you are looking to start an export business, this is the one for you. But make sure to follow the guidelines for storage and shipping.
6.Export Management Company
Many domestic companies start to join an export business, but not all of them know the export business.
So you can become a partner and manage the domestic seller’s business by starting an export management company. You can find ideal buyers and assist in their business as an export supervisor.
India Exports tons of Raw Cotton materials to Cotton fabrics, dress. As India is the second-largest Cotton Yarns and people living in countries abroad look for Cotton clothes, and its textiles. They are in huge demand with a considerable amount in western countries.
Though leather export and import are highly banned in many countries, the demand has been high in India by its manufacturers. Many business companies are looking for leather raw material to manufacture personalized handbags, shoes and accessories. So starting this business can be a lucrative idea. But make sure to follow all the procedures and first check the regulations before saying yes to this.
Requirements for Import-Export business:
Make sure to follow all the requirements and fulfil them. To start this import and export business ideas in India. These requirements include
- Company Registration Certification.
- PAN Card
- Business bank account
- Registration Cum membership certificate (RCMC)
- Import Export Code
These requirements are necessary to be cleared as a business person in India. To avoid any international crime and bluffs. The government uses these credentials for a safer side.
In this article, we have curated and listed the top import-export business ideas in India. It was manufacturing a product for export to other countries or bringing new products to the local market. It can be a great strategy in the pan of growth.
As long as you are starting this business. With outstanding assistance and help from family. It can bring success in their business.