Key benefits of Export business from India: There are plenty of benefits of export businesses from India, and the first thing that comes to my mind is expansion of global markets which leads to profit maximisation and expansion for the organisation. Exporting is a life-changing experience for companies, enabling businesses to tap into new markets and explore channels for expansion. It allows the organisation to sell its products and services in international markets. It drives a strong manufacturing base and surge in services. The key sectors like IT, gems and jewellery, and textiles are fuelling growth of our economy, while new trade agreements (e.g., Oman) along with other prominent countries provide significant boost to initiatives like “Make in India” and enhance competitiveness in the international arena.
Electronic goods have led the growth momentum. Exports are rising as smartphones remain one of the key growth drivers. Major markets include the USA, UAE, China, Netherlands, and UK, driven by Make in India and PLI schemes. Export businesses eventually lead to elevated sales of goods and services and growth for the company in the long run. Exporting goods can influence a country’s GDP, exchange rate, level of inflation, as well as interest rates.
Sturdy export data is beneficial. It leads to an increase in job opportunities, enhances foreign currency reserves, boosts manufacturing, and also shoots government revenue collection. Countries benefit through exports as their economy develops. Thereafter, more employment and governmental involvement are gained from exports.
Export business opportunities in India:
The most prominent export business opportunities in India include electronic goods, drugs & pharmaceuticals, engineering goods, iron ore, cotton yarn/fabrics/made-ups, handloom products and ceramic products & glassware. Petroleum products account for the lion’s share (18.8%) of India’s overall exports, valued at $20,709.41 million in April–June 2024-25. Sectors like biological and drug formulations (5.2%) and telecom instruments (4.78%) display positive growth. Meanwhile, the states with the highest percentage exports are Tamil Nadu (10.78%), Maharashtra (14.66%) and Gujarat (30.18%).
In fact, the US is the leading export destination for India’s smartphone and telecom exports. The Netherlands is the dominant market for exporting petroleum and automotive fuel from India. If stats are to be believed, India has already emerged as a domineering player in the global export market. It showcases remarkable growth across various sectors. In the agrochemical sector, India has achieved noteworthy success, particularly in insecticides, rodenticides, and fungicides.
The electronics & telecommunication manufacturing sector has shown significant advancements. This is reflected in the exports of electrical transformers and related components, which grew from $1.08 billion in 2014 to $2.85 billion in 2023 at a very rapid pace. We witness convenient access to innovative technologies, simultaneously with the advent of new technology and innovation.
With the passage of time we can see a surge in foreign currency and take advantage of price variations in the overseas market. Thereafter we explore consumer preferences and get to know the best global demand patterns.
Government Incentives and Export benefits in India
India aim to boost foreign exchange earnings and make domestic products competitive globally. The major schemes include the RoDTEP (reimbursing taxes/duties), Duty Drawback, EPCG (duty-free capital goods import), and Interest Equalisation (subsidized credit). These incentives, are often provided as transferable Duty Credit Scrips, help offset elevated logistical and operational costs.
Crucial Aspects of Transferable Duty Credit Scrips:
- Purpose: These scrips are granted to exporters as rewards to offset infrastructure inefficiencies and increased costs.
- Transferability: They are “freely transferable,” which means if an exporter does not need to use them for his own imports, he can sell them to another importer who can use them for tax liabilities.
- Usage: They can be used to pay for Basic Customs Duty, Additional Customs Duty (Sections 3(1), 3(3), and 3(5) of the Customs Tariff Act), safeguard duties, and anti-dumping duties.
- Validity: They are generally valid for 18 to 24 months from the date of issuance.
- GST Impact: They are classified as goods and are generally exempt from GST. When transferred to a third party, it is treated as an exempted supply.
- Process: The transfer is usually done peer-to-peer or via brokers. Once sold, the transfer is registered with the customs department, often requiring a Customs House Agent (CHA).
Discounted Sale: The scrips are usually sold at a discount (e.g., a ₹2 lakh scrip might be sold for ₹1.95 lakh). This provides immediate cash for the seller and tax savings for the buyer.
Scheme Incentives Benefits
Being one of the most sought-after export promotion incentives provided by the Government of India, the Duty Credit Scrips Scheme encourages exports. Issued under the Foreign Trade Policy, the Duty Credit Scrips Scheme aims at incentivizing exporters to enhance the inflow of foreign exchange to India.
Various schemes under the Foreign Trade Policy can issue Duty Credit Scrips. Below are the schemes under which authorities can issue Duty Credit Scrips.
- Merchandise Exports from India Scheme (MEIS) for merchandise exporters
- Service Exports from India Scheme (SEIS) for the service exporters
- Export Promotion Capital Goods Scheme (EPCG Scheme)
Due to the immense potential of the export industry in employment generation, the Government of India has put forth this incentive. Thus, Duty Credit Scrips are issued to the exporters by the Government of India to encourage exports. As exports along with bringing the foreign exchange to our country, also results in job creation on a large scale.
However there is another motive behind issuing the Duty Credit Scrips which is to counterbalance the infrastructural inefficiencies and related costs included in the export of items produced or manufactured in India. Furthermore, this would also contribute effectively to the ‘’Make in India’’ campaign launched by the Government of India.
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Why export business is profitable in India
If you wonder why export business is profitable in India then there is not one reason for this success. The export business is highly profitable in India. Strong global demand for Indian goods (textiles, spices, pharma), low-cost manufacturing, and robust government support help drive this growth. This includes subsidies and tax incentives (e.g., GST exemptions). The export sector offers high margins, currency exchange benefits, and massive scalability through digital, cross-border e-commerce.
Indian products like textiles, spices, agricultural goods, ayurvedic products, and IT services are in high demand worldwide because of their authenticity and purity. Moreover India offers a significant cost advantage due to cheap labour, abundant raw materials, and a strong manufacturing sector. Another major reason is that the Indian government supports our exporters with initiatives like “Make in India“, tax exemptions (no GST on exports), and special economic zones (SEZs).
A weaker INR compared to the USD or EUR increases profits. Foreign buyers pay more in local currency for the same product, which ultimately benefits the Indian economy. By accessing international markets, businesses that export can reach over 95% of the global population. Far beyond the limits of the domestic market. In addition to this, export businesses contribute significantly to India’s economic growth by generating foreign exchange earnings.
Export business growth in India
India’s export business growth is not limited to a single sector. Multiple industries actively drive this expansion. The services sector plays a major role, with strong growth in IT, business process outsourcing (BPO), and rapidly expanding Global Capability Centers (GCCs).
In the merchandise sector, industries such as engineering goods, electronics, chemicals, and pharmaceuticals demonstrate strong performance, reflecting India’s deepening manufacturing capabilities. Special Economic Zones (SEZs) further accelerate growth by providing incentives and infrastructure that support both IT and manufacturing sectors.
Strong export business has created millions of jobs in India’s textiles and IT industries. The Foreign Trade Policy defines “Deemed Exports”. It covers transactions in which suppliers provide goods that do not leave the country, and buyers make payment in Indian rupees or in free foreign exchange.
The Deemed Export Scheme covers various categories of supply by manufacturers, main contractors, and subcontractors. These include the supply of goods against Advance Supply to EOU and the supply of goods to United Nations or international organizations for their official uses.
This scheme also provides a level-playing field to domestic manufacturers in certain specified cases.
Under Deemed the supplier shall be eligible for any / all of following benefits in respect to manufacture and supply of goods
- Advance Authorisation / Advance Authorisation for annual requirement/DFIA
- Deemed Export Drawback for BCD
- Refund of terminal excise duty for excisable.
One of the primary benefits of exporting is the access to a global market of buyers. In other words, by exporting your products and going global, you are open your business to more than 95% of the world’s population – and by not exporting, you limit your business to less than 5% of the potential buyers.
Conclusion
The export business in India acts as a strong catalyst for growth, offering unparalleled advantages like duty exemptions, global market access, and greater profitability. By strategically utilizing government incentives and strong trade policies, Indian exporters could mitigate risks and thrive in the competitive international landscape.” Our highly competitive Falcon team offers comprehensive import services in India, specializing in fast, cost-effective, and secure end-to-end logistics.
Our Key benefits include expert customs clearance for various commodities, competitive air and sea freight rates, secure warehousing, and 24/7 shipment tracking to streamline the supply chain, particularly for imports from China and the UAE.
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