Chapter 2: What product to choose for export
Now that we are aware of the Regulators, let us get to a step by step process of setting up our export business.
“96% of the product which are in the export basket of India is duty-free”
Therefore, before setting up our business, we must identify the product which we are going to export. The item we select would help us draw up our projected Profit and Losses.
To know more about “How to check if import-export is allowed, do check our module on ICEGATE.
To help you become a great exporter, we have made a model of our won, which we follow:
UTSARG’S 3 Forces Model for Market selection:
Market Identification- The first force
- Search for the most promising areas
- Avoid markets with impediments
- Try and avoid markets where Government’s assistance is unavailable
- Check for ease of currency- conversion in some markets. Is easy of currency conversion is low, AVOID.
Market Accessibility- The second force
- Check for licensing and quota restrictions.
- Preferred Import- Export partnerships.
To elaborate, governments of some countries prefer to import from certain preferred countries, depending on their trade- agreements. Such biases must be check for before exporting.
Knowledge about the black and white- The third force
- Many countries require elaborate paper-work and consultation. For a firm like ours, just starting on our journey, it might become a hindrance to our expansion.
- Certain countries have importing restrictions on certain products depending on their quality and make.
Keeping the above forces in mind will help us become a star exporter within a short time. Let us move on to the next chapter to learn more about International Business requirements.