India’s import-export industry is a major contributor to the country’s economy. In recent years, both imports and exports have been steadily rising as India becomes more integrated in global trade. This creates many opportunities for entrepreneurs to launch successful import-export businesses.
Why Start an Import Export Business
There are several compelling reasons to consider an import export business in India:
- Growing disposable incomes: With a large middle class and rising incomes, demand for imported consumer goods and foods is increasing rapidly. This creates opportunities to import in-demand goods.
- Make in India: The Make in India initiative aims to transform India into a global manufacturing hub and promote exports. Entrepreneurs can leverage this by exporting Indian-made products.
- Government support: Schemes like the Merchandise Exports from India Scheme provide financial incentives for exporters. This improves margins and competitiveness.
- Expanding e-commerce: With growing internet access, buying imported goods online is easier than ever for Indian consumers. Exporters can also leverage e-commerce to access global consumers more easily.
Analysis of India’s Import Export Market
India’s total merchandise trade (sum of exports and imports) has been consistently rising over the last decade indicating expanding business potential:
| Year | India’s Total Merchandise Trade (US$ billion) | Growth (%) |
|---|---|---|
| 2013-14 | 764 | 7.36 |
| 2014-15 | 792 | 3.66 |
| 2015-16 | 652 | -17.76 |
| 2016-17 | 719 | 10.27 |
| 2017-18 | 833 | 15.78 |
| 2018-19 | 817 | -1.92 |
| 2019-20 | 853 | 4.41 |
Statistics Source: Ministry of Commerce, Government of India
The data shows steady growth in total trade with some yearly fluctuations – highlighting the scope for both importers and exporters.
Analyzing India’s Top Import and Export Categories
Below tables highlight India’s top categories for imports and exports and their latest annual values:
Top Import Categories
| Category | Annual Imports (US$ billion) |
|---|---|
| Mineral fuels & oils | 140.01 |
| Gems & jewellery | 31.65 |
| Electronic items | 51.88 |
| Machinery | 51.56 |
| Organic chemicals | 19.14 |
| Plastics | 17.65 |
| Medical & Scientific instruments | 7.78 |
Source: Ministry of Commerce 2019-20
This indicates categories with maximum import demand potential that entrepreneurs must focus on.
Top Export Categories
| Category | Annual Exports (US$ billion) |
|---|---|
| Petroleum products | 37.99 |
| Gems & jewellery | 35.89 |
| Organic chemicals | 22.49 |
| Vehicles & components | 17.70 |
| Machinery | 17.63 |
| Pharmaceutical products | 16.44 |
| Textiles & Garments | 15.82 |
Source: Ministry of Commerce 2019-20
The major export categories signify where Indian manufacturers enjoy maximum global competitiveness.
Top 10 Import Business Ideas for Indians IN
Here are 10 promising import business opportunities to consider:
1. Imported Food and Beverages
As incomes rise, demand for imported foods like nuts, wines, cheeses, chocolates, packaged foods and other specialty items is growing rapidly. These fetch premium pricing while catering to evolving consumer tastes.
2. Smartphones and Electronics
Electronics are one of India’s top imported products due to rising middle class demand. Importing fashionable and affordable consumer electronics like smartphones for local distribution can be lucrative.
3. Home Décor and Furnishings
With growth in real estate, demand for stylish and modern home furnishings and accessories is surging. This presents an opportunity to import unique home décor products.
4. Cosmetics and Beauty Products
India’s cosmetics market is growing at 17% annually. Importing niche cosmetics and personal care brands appeals to beauty conscious consumers and is a lucrative prospect.
5. Industrial Machinery
With the Make in India push, industrial machinery imports have accelerated. Importing specialized mechanical equipment, machine tools and components required for Indian manufacturing presents an opportunity.
6. Auto Components
The auto components industry is experiencing rapid growth. Importing specialized foreign auto components and accessories caters to increasing local demand from automakers and after-market customization.
7. Medical Equipment and Technologies
India’s healthcare sector is expanding quickly. Importing cutting-edge medical equipment and assistive products for local distribution serves rising healthcare needs.
8. Green Energy Products
As sustainability awareness increases, the market for eco-friendly products is growing. Importing items like solar panels, wind energy equipment, LED lights etc. meets rising green energy demand.
9. Premium Pet Food and Accessories
India’s pet care industry is now worth over $800 million. With improving living standards, demand for high-quality pet foods, treats and premium accessories is rising.
10. Toys and Games
India’s toy industry imports over 80% of its toys. Distributing imported interactive toys and innovative games from global brands caters to the educational and developmental toy segment.
Top 10 Export Business Ideas for Indians IN
India also offers tremendous export opportunities in various sectors:
1. Textiles and Garments
Textile products like fabrics, apparel and accessories are a major Indian export. Sourcing garments from manufacturers for exports is a proven business model.
2. Leather Goods
With abundant availability of skilled labor, India manufactures quality fashionable leather goods at competitive prices for export to global fashion retailers.
3. Jewellery
Intricately designed gold, silver, diamond and gemstone jewellery is an iconic Indian export product. Sourcing jewellery from Indian artisans and exporting to overseas retailers is lucrative.
4. Handicrafts and Home Décor Items
Exporting India’s unique arts and crafts like pottery, paintings, metal ware etc. and home decoration items to international retail chains has growth potential.
5. Spices and Condiments
India is one of the world’s largest spice producers and exporters. Sourcing authentic Indian spices, seasonings and masalas for export to global distributors and retailers sees steady demand.
6. Tea and Coffee
Indian Darjeeling tea, Assam black tea and other regional specialty teas along with coffee are exported worldwide. Building relationships with plantations and processors to export tea and coffee is rewarding.
7. Seafood
India is the 2nd largest global aquaculture and fish producer. Seafood export is a major foreign exchange earner. Facilitating seafood exports provides stability and high margins.
8. Fresh Produce
India’s agrarian economy produces diverse range of high quality exotic vegetables, fruits and medicinal plants for exports based on international demand dynamics.
9. Pharmaceuticals
Indian pharmaceutical firms are major global suppliers of affordable generic drug formulations and vaccines. Pharma product consolidation and export is low risk and lucrative.
10. Engineering Goods
From industrial fasteners and machine tools to iron casings and automotive gears, Indian engineering firms excel at precision manufacturing for export markets.
Some Key Export Partners: USA, UAE, China, Bangladesh, Germany, Hong Kong.
Conclusion
India’s growing integration with global trade and investment flows coupled with rising consumer demand and spending power creates attractive opportunities for both importers and exporters. I hope this post provided insightful ideas across possible import export business opportunities worth exploring for Indian entrepreneurs.
Please share your feedback, ideas or questions you may have about starting an import export business in India by commenting below!
