Top 9 Benefits Of Export Business in 2023-24

India is a big country with many products and services to offer to the world. Every business has the potential to sell its products globally. Running an import-export business offers several advantages, such as:

1. Market Diversification:

Engaging in international trade allows businesses to diversify their product offerings, mitigate risks associated with local market fluctuations, and create new revenue streams. Irrespective of your business size you should try to make your presence in multiple countries for more sustainability and consistency in business. The government of India has signed many Free Trade Agreements with many countries so that Indian products get an advantage over other countries.

2. Increased Revenue Potential:

In India, there is enormous competition, hence even though you have good products you will face limitations. By reaching a global customer base, businesses can tap into new markets, expand their sales, and boost their overall revenue. If your products get a good response in that country, you will frequently get repeat orders. Along with one product, you can market other products also in similar categories as there are high chances to get orders for them also.

3. More Profit Margins:

Indian market is very price sensitive as 70% of people are in the lower income category. You can explore markets with more purchasing power for your products where you can expect good prices. But when you target a premium market then your quality, packaging, and service will matter a lot. Even if you get the same price in the global market, your order volume will be higher and regular.  Many Indian companies are selling their brands worldwide. E.g IndiaGate Basmati Rice, Ashirwad Atta, Haldiram Snacks, Parley Biscuits, Amul Ghee, MTR Spices, Darbur ayurvedic products, Kirloskar Engines, Finolex Cables, Mahindra Tractors, Bajaj Bikes, Arvind Mill Fabrics, and many upcoming brands are also able to sell their products in international markets.

4. No GST Tax on Exports:

Indian government knows the international market well and they also know what support our exporters need. They want to make Indian products competitive in the world market from a pricing point of view hence the government has declared export as zero-rated products, which means there is no tax on export.

5. Government Subsidy:

The government has identified many business sectors and products on which many people are dependent for their livelihood like the Textile sector is very labor-intensive. On another side, there are some products that have high demand in the world like ecological products, and high-end tech products. The Indian government offers incentives on such 8000+ products in the form of the RoDTEP scheme.

6. Risk Management Support:

There are many risks in the export business and one of the biggest risks is payments to be received by the buyer. The government of India also supports Risk management by offering insurance to all exporters, which otherwise are not available to local businesses. If you understand the import-export cycle properly and work as per the system defined by ICC and RBI then your business is always safe.

7. Funding Support:

Every business starts small and grows. Export is a trading business that will need capital in its growth phase. If you have limited funds and if you get new orders then you will get stuck. So the government of India offers subsidized loans to exporters in the form of PreShipment and PostShipment finance schemes. You can get a loan against your purchase order also and also at a subsidized interest rate from the government.

8. Economic Growth and Development:

Import-export businesses contribute to the economic growth of businesses as well as countries by generating employment opportunities, attracting investments, and fostering international partnerships. In the year 2022-23, India’s merchandise Exports are $ 447 Billion and Imports are $ 714 Billion, which means there is a trade deficit of $ 267 Billion. Reducing this trade deficit is the top priority of the government. The Indian government has set a target of USD 1 Trillion in exports hence they are developing all required infrastructure for export. Rising export creates business opportunities in other sectors as well like packaging, logistics, banking, insurance, etc.

9. Personal Exposure and Growth:

When you think about Import Export you will always think about top markets and top products. This will help you build an international network from where you can get access to market information and the latest happenings. This will always keep you ahead of others in domestic business. You will be exposed to the global market and will definitely get more business opportunities. After all the one who knows the market rules the market.