Exports is a clean business
28-Dec-2015
Rukshad Bhagwagar’s advise to entrepreneurs on export:
Exports is a clean business and one is assured of payments for material supplied.
Exporters get incentives of about 7% (2% duty drawback, 5% import licence which one can sell).
Loan obtained abroad comes at low interest rates of about 4% (1% Interest cost + 3% Bank charges).
Exporters get benefits like duty free import of raw material and machinery.
There is MDS Scheme where an exhibitor in foreign countries can save about 50-60% cost.
Smaller exporters can even get shelf space free of cost through the promotion council of their industry.
The promotion councils offer a lot of help and provide a lot of information.
Exporting is becoming much easier than before.
The most important thing is to export within time otherwise the buyer has right to not accept the goods.
For new exporters it is advisable to go for 30% advance & balance 70% upon export rather than LC.
Visit your export promotion council. Normally they are based at New Delhi.
Participate in a fairs. Direct sales can happen through fares. Be visible and available.
Get in touch with buying agents of foreign companies in India. LI & Fung are one of the largest buying agents in India.
Use online platforms like Alibaba.
Rukshad is Founder & Managing Partner of Forms which has become a leading name in handicraft exports from Central India.
He was speaking at VIA.