Exporting goods and services has always been a mainstay of the Indian economy. The export sector is witnessing unprecedented growth due to the country’s abundant natural resources, skilled labor, robust manufacturing, and technical expertise. For SMEs, export from India has ushered in massive profitability and growth. From the government’s export initiatives to the popularity of eCommerce, multiple factors have spearheaded the Indian export revolution.
India’s Rise as an Export Giant: Analyzing the Key Propellants
For several decades after India’s independence, export from India was limited to large corporations. Rapid digitization and the eCommerce revolution have completely altered these dynamics. Today, SMEs are capitalizing on Indian exports, thus paving the path for phenomenal growth and global success. Here are the key propellants driving small and medium enterprises in the country’s rise as an export giant:-
- Government Support and Incentives– To export products from India, the Merchandise Exports from India Scheme (MEIS) and the Service Exports from India Scheme (SEIS) are two important governmental incentive schemes. SMEs can also apply for financial benefits under the Export Promotion Capital Goods Scheme (EPCG) and the Rebate of Duties and Taxes on Exported Products (RoDTEP).
- Rise of Global eCommerce Platforms– With low set-up costs, seasonal insulation, and single-window logistical support, many Indian SMEs have attained an outstanding global reach. For example, eBay in India has revolutionized the realm of online exports. Apart from being an easy-to-use platform, it is a pure-play marketplace that doesn’t control prices.
- New Digital Marketing Avenues– With PPC campaigns, social media marketing, organic SEO, and content marketing, even SMEs with modest marketing budgets can reach a global audience. Digital marketing agencies have introduced tailored packages for startups to penetrate new markets. Digital marketing and eCommerce platforms have created a level playing field for Indian businesses to compete in international markets.
- Tech Innovation– AI platforms, digitization, and data analytics enable Indian SMEs to gain competitiveness in the global market. From anticipating the requirements of their target audience to developing customized products and services, manufacturers and sellers have successfully responded to fluctuating market demands.
- Focus on Skill Development– Numerous training programs, both online and offline, now include modules focused on acquiring the knowledge and skills necessary to establish a prosperous export venture. In addition, comprehensive export training resources are available through various platforms, aiding potential exporters in honing their expertise.
By participating in this program, exporters can gain increased visibility, higher sales, and sustainable growth, contributing to their success in the international market.
Why Export from India?
For SMEs with limited resources, embarking on export opportunities might be a significant transition. The myriad benefits for sellers to export products from India are as follows:-
- Wider Market Access– By embarking on an export business, SMEs can reach a broader range of customers from overseas markets.
- Higher Profit Margins– Very often, the same products/services fetch a higher price from foreign buyers than Indian buyers.
- Global Innovation– Export activities help SMEs access innovative technology and the latest trading/business knowledge.
- Brand Building– By registering to sell on global platforms, Indian SMEs can gain international recognition.
- Risk Mitigation– Selling in multiple global markets mitigates the economic repercussions of relying on a single domestic market.
- Cost-Optimization– With the multiple governmental incentives available for export, SMEs can easily cover their operating costs.
Conclusion
Indian SMEs should not restrict their sales to the domestic market only, as there is a significant demand for Indian products and services in various international markets. By leveraging the digital landscape, Indian SMEs can conveniently fulfill the essential prerequisites for international trade. The ease of online applications for IEC, subsidies, and registrations enables SMEs to focus more on product quality, market research, and building strategic partnerships, which are vital components of a successful export business.
Embracing global opportunities can lead to sustained growth and international recognition for Indian SMEs, allowing them to contribute significantly to the country’s export-driven economy.
