Have you ever been interested in exporting goods from one of the world’s biggest economies (India) to Australia, one of the Asia-Pacific region’s largest economies? With an open attitude and some calculations/planning under your belt, running a successful export business can be within reach.
Are you an eCommerce entrepreneur in India looking to break into the Australian market? Starting an export business from India to Australia can provide a huge opportunity for international growth. But, there can be quite a few legal and logistical challenges that come with it. To ensure your mission to export from India is successful, it’s important to know the rules and regulations for trading abroad and set up strategies, so all operations within your business are organized. In this blog post, we’ll guide you through everything needed to get started and make progress with exporting products from India to Australia.
Why Should You Export To Australia From India?
Rising Exports From India To Australia
With exports from India to Australia on the rise, there has never been a better time to start an export business from India to Australia. The Australian market is one of the most rapidly expanding markets in the world. In 2018 alone, India exported USD 3.74 Billion in product categories such as Petroleum oils, pharmaceuticals (especially medicaments), precious stones, and more.
Some of the other major exports that could benefit entrepreneurs looking to start an export business from India to Australia include agricultural products, leather and leather goods, footwear, apparel & clothing, textiles, and makeup items, chemicals, and chemical products – all of which could be very profitable in a highly competitive market. With so much potential for growth within the Australian market for Indian exports, now is the best time to start your own export business and make the most of this growing opportunity!
Developing infrastructure is one of the main selling points for Australia, and it’s an excellent reason for keen Indian exporters to consider doing business in the country. With established roadways, railway lines, and ports, plus new investments into healthcare facilities, the country offers a great platform for Indian exports. What’s more, citizens in Australia are well-known for their taste in exotic goods delivered from faraway lands. So there’s no question that any export business from India to Australia could be a booming success.
Indians in Australia
Australia is the world’s second-highest overseas education destination for Indians. In addition, the country is home to many Indians pursuing their education or other professional reasons. Therefore, the demand for Indian products is very high, creating a great business opportunity for exporters.
Documents Required To Export Product To Australia
Current Account With A Bank
Starting an import-export business from India to Australia can be made considerably easier with a Current account with a bank. Without one, it would be like being locked out of the country you’re trying to export to. It’s mandatory for any financial transactions related to your export business, such as issuing a credit note or advance payment receipt, to go through this Current account. A Current account is quite helpful in monitoring your business’s balance frequently and avoiding overspending along the way. So if you don’t have one already, ensure that you open up a Current account with your bank before setting sail into the world of import and export!
Obtaining a PAN number is important when starting an export business from India to Australia. This is because PAN numbers are like the identities of businesses – they help link them to other authorized entities and provide assurance that legal processes are followed throughout their operation. In addition, the PAN number helps make any transaction, be it within India or internationally, more secure and easily identifiable in government records.
With PAN numbers, the business may be able to initiate international exchanges with the corresponding country, in this case, Australia. Thus, PAN numbers are essential for India-Australia exchanges, creating a safe and secure platform for all future dealings.
The government issues the IEC Number (Import Export Code). It acts as a green ticket for setting up an export or import business. It is also generated based on your PAN details, so if you want to get this IEC Number, you better ensure that your PAN details are in order. Besides being necessary for exporting goods, IEC helps businesses comply with taxation policies. So make sure to get your IEC Number before you embark on your EXIM journey!
Registration And Membership Certificate (RCMC)
Every exporter in India needs to register and obtain the Registration-Cum-Membership Certificate (RCMC) if they wish to do business with Australia. This is because it is required for availing of benefits or concessions under the government’s Foreign Trade Policy (FTP 2015-2020).
Export Promotion Councils, Commodity Boards, or Authorities generally grant the certificate. It helps exporters remain compliant with their registration requirements. Registration with RCMC also reduces the paperwork since all necessary legal documents can be submitted online.
5 Tips To Help You Export From India To Australia
Must Have A Valid Business Operation
Starting an export business from India to Australia is a great way to enhance your operations and expand your market reach. However, it would help if you had a valid business operation before you get going. To begin with, you must be registered as a sole proprietorship or partnership firm with a convincing name and logo. Next, you must be established according to the procedure. Finally, you’ll need to obtain all the required permits from both countries and guarantee that the goods you are exporting are legally compliant.
You should also research customs regulations and clearance requirements and create a chain of possession record. Putting everything together can seem intimidating at first. Still, it doesn’t need to be: plenty of resources can teach you all aspects of running an export business successfully, so don’t let this be a roadblock in starting your export business.
Do Prior Market Research
Prior market research is crucial for a profitable export business from India to Australia. Market analysis is vital in bringing business success; it should be comprehensive and genuine, focusing on market size, competition, quality requirements, product demand, payment terms, insurance coverage terms, customs rules, and more.
Market analysis, in particular, plays an incredibly vital role in any export business as it provides valuable insight into the potential profits that could be made. Sufficient prior research can often mean the difference between a successful enterprise and one that quickly falls flat. If you have an awesome sense of humour to bring with it, then even better. So time to get your thinking caps on and on with that market research.
Find A Genuine Logistics Partner
The success or failure of your export business to Australia could depend on having a trusted logistics partner who can ship your carriage internationally. Before finally settling on a partner for the job, here are a few things that you’ll need to consider:
- their trustworthiness and reliability
- cost-efficiency, flexibility
- delivery services
With so many choices available these days, it can be difficult to tell who is trustworthy and who isn’t – but some things can give reliable companies away. First, check out customer reviews online and ask your networks if anyone has had any experiences with particular companies; researching beforehand could save you many heartaches later. But you can cut this hassle in half. Thanks to NimbusPost and its cutting-edge technology, it’s now easier to source a genuine logistics provider to assist with smooth cargo transport. You can choose the best, cost-efficient partner with the help of different metrics. NimbusPost uses automated data analysis and intelligent algorithms to provide tailored logistic solutions for each customer’s requirement.
Do Sampling Process
Doing a sampling process is very important to start a profitable export business from India to Australia, so you must ensure that you follow the laws associated with it. Before sending out the sample, you should go through all the processes, such as knowing about the target audience for your product, familiarizing yourself with their preferences, and getting an assurance of quality from them. Before starting your export business, you should also ask for other certifications, government approvals and export incentive schemes. Sampling can be expensive but utterly necessary for a successful export venture. Do it right and make sure everything’s in place before starting up!
Make Sure To Have Shipping Insurance
If you’re starting an export business from India to Australia, shipping insurance should be the first thing on your agenda. That’s because it is critical to ensure that your operations are profitable and the investment is worthwhile. While many people consider shipping insurance as simply another cost to their business, you can think of it instead as a safety net for any unexpected hiccups during shipping.
Unexpected delays or damages can cause a huge loss to your business, so having shipping insurance will help make sure a small problem doesn’t turn into something bigger. In addition, with shipping insurance, any potential losses are offset with reduced financial risks.
Best Products To Export To Australia
Gems, Pearls, And Jewellery
Precious stones, gold, and jewellery have always been emblems showcasing Indian culture and its richness. We know that gems, pearls, and jewellery from India have a very high demand in the International market. Tapping the opportunity, Indian exporters are exporting jewellery and stones worldwide, including Australia. Australia is one of the prominent markets of luxury items, silverware, rare stones, and gold.
Leather, Leather Goods, Footwear, And Travel Goods
Aussies are fans of Indian leather bags and footwear. Leather is one of the most profitable businesses in Australia. Exports to Australia from India in leather goods, travel goods, and leather footwear registered a growth to A$ 56 million in 2001 from A$ 55 million in 2000. Exporting leather shoes, sandals, luggage bags, and purses is a great profit-making business for Indians who want to sell internationally.
Australia has always been a prime importer of Indian agricultural products. Tea, Coffee, serials, and Indian spices are world-famous, and the demand for these products in the Australian market is unparalleled. So if you’re considering exporting agricultural products to Australia, you are already on the right track.
With the growing relationship between both the countries- India and Australia, opportunities for expansion and tapping into profits for our Indian merchants and eCommerce sellers are growing simultaneously. If you analyze, Indian exports to Australia have considerably increased in the past few years. However, the market is still not saturated, and the scope of development still exists. As an eCommerce seller looking for international expansion, the Australian market is a gold mine for you.
We hope you follow the tips in this blog on your way to becoming a successful exporter from India to Australia. Last but not least, if you’re ready to start exporting from India to Australia, we can help. NimbusGlobal makes cross-border trading a hassle-free experience. Contact NimbusPost today to get started.