Importer and Exporter in India- an overview of the Industry in India
The Importers and exporter in India are one of the most successful business people in
the community. Import and export has transformed into one of the most lucrative
business in India, with the liberalization of the economy. In the age of pre liberalization
the amount of customs duty which an importer or exporter had to pay to the
government was far larger than what is it today. This article will deal with the
restrictions and business opportunities that Importer and Exporter in India has to face.
Importers and exporter in India has to face many challenges to do business but once
these have been overcome the business opportunity is tremendous. The reason
importers and exporters in India have massive opportunity is that they have a large
amount of goods that are only manufactured in India like the shawls of Kashmir, tea
from Darjeeling and Assam, Jute products from West Bengal and silk from Karnataka
and Tamil Nadu. Although the challenges for importing goods in India have been a
challenge both before and after the liberalization of the economy, importers are willing
to face these challenges as these goods have a huge demand in the country and can be
charged a premium for .Some of the challenges which Indian importers have to face are:
1. High Custom Duty
2. Slow process of issuing licenses
3. Large amount of government approvals
1. High Custom DutyCustom Duty an importer pays to the Indian government to bring in goods from
other nations to India. Often the customs are found to be high in case of luxury
goods rather than essential goods. Customs are a tool used by the government to
meet two objectives, firstly, discourage imports by applying large taxes on them
and secondly, increase the price of low priced foreign goods so that domestic
competitors can keep up on the price front. Customs however in the post
liberalization era is far lower than what is used to be in the pre liberalization era.
During the post liberalization era the customs duty on foreign shoes (male
shows) was lowered from 108% to 21.3%.
2. Slow process of issuing licenses:
Getting a license for import and exports of goods in the pre liberalization era was
very tough and was made even more so with the imposition of the license raj. But
with the relaxation in import restrictions in 1991 the process of getting import
and export licenses became easy but the cost of getting licenses continues to be
3. Large amount of government approvals:
The amount of government departments involved in the approval process during
the license raj was stupendous with the approval of 6 different government
departments required in the case importing Gold from other countries.
To know more details about the Indian importers/exporters, Import Export data,
complete import/export ports list then you can visit our website www.seair.co.in
The importers and exporters of India do face an uphill battle when importing goods but
also have the opportunity to make large profits.