How to EXPORT from INDIA?

Trading is a part of business, but in order to understand the entire concept of trading, we need to start with the definition. Well whenever there is buying or selling of goods and services, where the compensation is paid by a buyer to a seller or there is an exchange of goods or services among the parties, that basic economic concept is known as TRADE.

The whole idea of trading has changed over a period of time, ever since the concept of consumer culture came into existence. This culture has given us many producers and consumers. Hence the whole idea and concept behind exporting have changed drastically.

International trading is a practice that allows us to expand our business worldwide. The chances of finding potential clients increase with the expansion of international trading.

ADVANTAGES OF EXPORTING-IMPORTING FROM INDIA

INTERNATIONAL GROWTH: If we just focus on the domestic market then we are focusing more on small business marketing. But with the import-export process, you will be able to create more and more business opportunities and you can actually focus on business expansion. As diversified market would give your more potential customers and sustained revenues.

TRADING WILL IMPROVE YOUR FINANCIAL PROBLEMS: Technically if you are doing import-export business in the international market and your product revolves around the global market, then the commercial value of your product increases, you will be to make more capital on your trade. Therefore international trading will improve your financial problems.

REVENUE PROTECTION: Every business establishment is looking to earn money or some of them are looking to make some extra money, and when you do international trading there are some risks but your contracts, insurance and financial instrument trading can help you to protect the revenue.If you are planning on expanding your establishment then import-export business in India is your answer. Here are some key points you need to research if you want to export from India.

• Import licenses
• Export licenses
• Import quotas Subsidies
• Voluntary Export Restraints
• Local content requirements
• Embargo
• Currency Devaluation
• Trade restriction

These are the basic barriers you need to overcome if you are planning on exporting from INDIA, now the question is how do we do it?HOW TO EXPORT FROM INDIA?/STEPS TO EXPORT FROM INDIA

1. Prerequisites

REGISTRATION First thing first, you need your register your company because a registered business establishment is mandatory for exporting. The setup can be registered with a solo firm, partnership firm, a private company limited or limited liability partnership, if you compare all of them then LLP is the most suitable one.APPLY FOR IEC.There are some registrations you need to do in order to attain IEC for your business.

• Registration with Director General of Foreign Trade (DGFT).
• Registration with foreign Promotion Council.
• Registration with Income Tax Authorities
• Registration with Commodity Boards.

Followed by the export license which will allow you to trade.Documents required The required documents are divided into two categories, which are mentioned below: Pre-Shipment Documents

When your product is ready to be exported then the seller/producer needs to generate, authenticate and submit documents to the concerned authorities.E.g. Custom invoice, packing list, letter of credit, export license, etc.Post –Shipment Documents These documents will include the copies of pre-shipped documents and some additional documents as well. E.g. custom attested invoice, packing list,consular invoice, certificate of origin, etc.

2. Selection of Product

It is understood that it is very important for you to decide or choose the product you are planning on exporting from India because trading is all about fulfilling the demands made by consumers. Therefore it is compulsory for you to research and find the right product that has the highest demand in foreign markets and how do you plan on delivering them.There are more than 7500 products that are exported from India. After analyzing the Indian import export data, these are the top products that are getting exported from India:

• Petroleum Products
• Jewelry
• Machinery and mechanical appliances
• Automobile Bio-Chemicals
• Iron and Steel
• Rice
• Textile
• Electronics
• Rubber
• Pepper
• Coffee
• Cotton

3. Market Analysis

For any kind of business, you always choose your target market and your potential buyers or suppliers. Your choice of market will decide the amount of revenue you are going to generate.You need to start looking for the best trading partners of the country you are planning on exporting from.For e.g. Major trading partners of Indian markets are:

• U.S
• UAE
• China
• Hong Kong
• Singapore
• United Kingdom
• Germany
• Bangladesh
• Netherlands
• Nepal

4. Arrange Export Order

Arranging export orders comes after getting a response from the overseas buyers and then the next step would be drafting quotation and price negotiation with the buyers. Once the quotation is set, it is advised to send a sample of your product and wait for their approval. Their approval of the sample will set you on the course of manufacturing and quality control. It is very important for the manufacturers to procure the raw materials and start manufacturing the goods or products which are demanded. And they should also take care of the quality of the product they are manufacturing, good quality products will give them more credibility in the international markets.These are steps that come under the process of Arranging Export Order.

5. Execute export order

Next step would packaging, labelling and delivering of the products to the overseas buyer. Packaging of your product is to be carried out perfectly as the products are going to be exported in the global markets and it stands the same for labeling. Delivering is one of the last steps of exporting from India.

One needs to find the most effective freight partner to deliver the products to the overseas ports. plus the company would need local transportation and logistics, they would need help in custom clearances, paying duties and taxes,finding local agents

After preparing the product ready for the process of delivery, comes the submission of documents, it is part of a shipment procedure, therefore it is compulsory for the producer to provide all legit documents during exporting of goods and services.

This process includes delivery, customs procedure and submission of documents.

Conclusion

The trading market is full of potential but in order to achieve it, you need proper planning, analysis of the market, selection of product, procurement of goods and execution. If you manage to cover all these areas, then bravo you are a potential exporter.

To know more, visit our website at http://connect2india.com

We are a one stop source for Indian SME to export from India or Import to India. We provide end to end export import services right from arranging export order to executing the order successfully.