In India, people are crazy about imported items. Thus, starting an import-export business in India is a lucrative business option. You can earn a lot of money in the export-import business.
Many people want to start import export business but they are not aware of – How to Start Import Export Business in India. If you are one of them, here is a complete process explaining steps for starting an export-import business including a list of 20 Best Import Export Business options in India.
How to Start Import Export Business in India?
In India, foreign trade is monitored and controlled by DGFT (Directorate General of Foreign Trade). It is mandatory to obtain an IEC code and license for starting this business. The steps for getting an IEC code for starting an import-export business in India are given below.
- The first step is to register a company in India. You can go for a sole proprietorship, partnership, or limited company. Decide the company name and file the required forms to the Ministry of Corporate Affairs.
- Once your company is registered open a current bank account to deal in foreign currency.
- Once you are done with the above steps you can go for applying IEC code. IEC code is 10 digit number required for import and export business.
- You can apply for this number online at the DGFT website. You need to upload mandatory documents such as bank certificate and address proof of the firm.
- Once you get an IEC number, you can apply for a register cum membership certificate. This certificate is required for availing authorization of import-export and other concessions.
Also Read – 11 Best Distribution Business Ideas
Points to Consider Before Starting Import Export Business
You should consider the following points before starting the import-export business.
Right Product
The first point to consider while starting foreign trade is the selection of the right product. There are certain restricted products. You should study the product range before making a selection. You also need to study export and import trends.
Market Potential
The next step after deciding product is finding market potential. You need to do market research to find out the competition, product consumption, and applicable export benefits. You can make use of data available with export agencies.
Potential Buyers & Sellers
You also need to find out potential buyers and sellers of the product. The buyer can seller can be across the country. You can make use of online websites to do that.
Payment Terms
You need to discuss applicable payment terms, currency used in the transaction as well as payment mode well in advance. It will help in maintaining transparency in the business.
Risk Coverage
You are also required to assess the risk associated with this business. The major risk you will face while doing this business is payment risk. You can make use of ECGC to cover risk of non-payment. In addition to that you can cover risk by taking insurance.
Mode of Shipment
You also need to decide the mode of shipment. The shipment can be done via air route, sea route, road, post parcel, etc. The costs associated in each mode are different.
Profitability
It is very important to check the profitability associated with the product you select. A higher profitability is likely to give you quick success in the business.
20 Most Profitable Import Export Business Ideas
Aluminum Import Export
Aluminum and Aluminum products are in demand outside as well as inside India. Thus, starting the Aluminum Import Export business makes sense. In addition to IEC license, you will need approval from the pollution control board and other government authorities to start this business.
Coffee
Coffee export is a very good business. The demand for coffee is very high across the globe. India is the sixth-largest coffee-producing country. Countries, where you can export coffee, are the USA, Finland, Norway, Sweden, etc.
Cotton Yarn Fabric Export
Cotton Yarn Fabric Export is next on the list. Cotton Yarn is used for producing cloths. India is the second-largest producer of cotton yarn fabric across the globe. If you have the know-how of cotton yarn you can opt for the cotton yarn fabric export business. The USA, Japan, Spain, and China are some countries are the major importing countries.
Diamond Import Export
India is a Diamond polishing hub all over the world. India imports rough diamonds and sends back polished and cut diamonds. Availability of low-skilled labor and expertise are plus points regarding the diamond business. It is a risky business and requires a lot of investment. If you have expertise and knowledge you can start this business.
Electronic Component Import
Demand for Imported Electronic items such as televisions, refrigerators, mobile, and other consumer goods is very high in India. So, starting an electronic goods import business is a very good business option. The investment required for this business is very high. You need to develop a good marketing strategy for the electronic goods import business.
Fertilizer Import
India is an agriculture-based economy. Demand for fertilizer is very high in India. Most of the fertilizer is produced locally. However, few farmers prefer imported fertilizer. This gave birth to the fertilizer import/export business. Except for urea, all other fertilizers can be imported freely in India.
Glass Import
Glass and glassware come under hazardous waste items. Most of the countries regulate and control imports and consumption of glass. You need to follow guidelines and terms in order to import glass and related items. Imported glass products usually remain in demand. You can start this business and earn a lot of money.
Handicraft Item Export
Handicraft items are decorative items made up by hand or by tools. Indian Handicraft items usually remain in demand outside India. So, starting handicraft item export is a lucrative business option.
Jewellery Export
The jewelry export business is next on the list. The demand for Indian traditional jewelry is very high outside India. If you have expert jewelry designers who can design unique jewelry you can rule this market. It is a risky and moderate investment business option.
Machinery Import
Imported tools and machinery remain in demand all over India. If you are from a mechanical background or are aware of machinery you can start a machinery import business. You can sell this machinery locally or open up an online website for selling it online.
Milk Products Export
India is one of the largest producers of milk and milk-related products. Milk production and selling is important for the livelihood of people. Milk export can be done in nearby countries like UAE, Bangladesh, Singapore, and Nepal. A challenge you will face is maintaining temperature while these products are in transit.
Natural Rubber Import Export
Natural Rubber Import Export is one of the best export-import business ideas. Natural rubber is produced on the rubber tree. Special treatment and care are required for these trees. Natural rubber can be exported to countries like Thailand, Malaysia, Vietnam, etc.
Oil Import
Edible oil is widely used in food products. The demand for edible oil in a country like India is very high, thus starting an edible oil import business is a very good business idea. Edible oil can be imported under an open general license.
Organic Food Export
Organic food is natural food (vegetable and fruit). In India, organic food is not that much famous. However, in countries like the USA, UK, and Canada demand for organic food is very high. You can start a business related to organic food export and earn a lot of money.
Processed Food Item Export
India is the largest producer and consumer of processed foods. The processed food produced in India can be exported to nearby countries. The challenge you may face in this business is packaging and shipping.
Readymade Garment Import Export
India is famous for its garments. The garment produced in India is cheap compared to other countries. This is mainly due to the availability of labor at low cost. A readymade garment is very good product for the import-export business.
Sugar Export
The sugar sector is partially decontrolled by the government. The export of sugar is free provided you have registration in DGFT. Sugar can be exported to countries like China, USA, Australia, Brazil etc.
Tea Export
Tea is one of the widely used items all over the world. Tea is available in different types such as herbal tea, Green tea, black tea, organic tea, etc. You can export tea from India to various countries and earn a lot of money.
Tobacco Export
Tobacco export is a very good and profitable business option. However, tobacco export is restricted in a few countries. So, before starting tobacco export you need to study laws very carefully.
Spices Export
Indian spices is famous all over the world. People are crazy about Indian spices. This makes Indian spices export very good business. The export of Indian spices is growing every year and expected to grow further.
