Getting into Import Export is not an easy task. Especially in our country, one can face countless challenges and obstacles on their journey toward a successful export. The problems faced by exporters in India are not small- and are due to multiple reasons. International competition, government restrictions, and lack of knowledge and information are some of the major factors contributing to numerous problems an Indian exporter might face.
Here are the top 8 problems faced by exporters in India. Read on to find smart ways to learn and tackle your way through these problems as well!
Top 8 Problems Faced by Exporters in India & How To Tackle Them!
1. Lack of Relevant Knowledge
Many suppliers and exporters get into this business blind- without enough relevant knowledge and information. Due to this, some of the major problems faced by exporters in India include not knowing how many minute details. When their turn to actually export does come up these exporters can’t clear the processes because of incomplete knowledge.
A relevant course along with adequate study and research can make you more prepared to export.
2. High Competition in Global Markets
For Indian exporters, the competition they face in the global export market can be a big problem they face. There is competition in everything- quality, production cost, price, and sales. Above that, the competition also extends to domestic, local, and existing international exporters.
The consequence of this can be identifying real and genuine importers for your products. Many times these importers are present in Dubai markets and ports, where you can communicate and pitch your product directly.
3. Complicated Documentation
There is a huge checklist of necessary documents you need to export. These documents all have to be prepared in advance. Missing even one of them during your process can hamper your export. Often some small but necessary documents can be forgotten, causing a major problem.
4. Government Restrictions
The ever-changing rules and restrictions by government bodies can be another of the major problems faced by exporters in India. For example, recently the government imposed restrictions on wheat and flour exports. These unprecedented bans along with restrictions that result in licenses, customs, quotas, and other formalities can create even more obstacles for exporters.
5. Subsidies Imposed by First-World Countries
Exporting is an activity that takes place between various countries. Some of these are developed, while others are still developing. This difference causes the imposition of different rules when it comes to customs, export, and licenses. Moreover, many developed countries attach huge subsidies to their exporters, which is disadvantageous to exporters from developing countries. This is directly competitive with Indian exporters.
6. Not Being Well-versed in Negotiations & Languages
Newcomers in the export world can be at a huge risk of being exploited. They can face loss if they don’t know how to accurately study market and product trends and practice negotiation. Language barriers can also be one of the major problems faced by exporters in India specifically. These issues can be solved with the guidance of an expert in the industry.
7. Packaging & Products Standards
Another one of the major problems faced by exporters in India is the demand for high product standards from developed countries. Many Indian products can be subjected to tests from these countries. There is a risk of losing the market in such cases.
8. Other Problems
Here are a few other problems faced by exporters in India:
- Weather & Climate while Shipping
- Less Technology Development
- Low Labour Productivity
There are still a few other problems faced by exporters in India including recessions, lack of incentives, technological differences, and payment difficulties due to the fluctuation of the currency rates of each country. Thus, exporters should be well-versed in various languages, currency rates, market trends, etc., while also being aware of the technicalities of export including documentation, customs, bank procedures, etc. Without this knowledge, information, and training, any exporter can face several obstacles.
You can tackle most, if not all of these problems with the Import Export Federation. An A to Z Import-Export hub, our online & offline courses, along with webinars, JNPT & Dubai tours & visits covers all aspects of export. With experts who have been in the industry for more than a decade, the federation prepares you to overcome any obstacle that comes your way in your export journey! Start your journey today!