CHAPTER ONE

PRELIMINARIES FOR STARTING EXPORT

BUSINESS

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 HISTORY OF EXPORT IN INDIA

• MUGHAL EMPIRE 1525-1725

• NAWABS,MARATHAS,NIZAMS 1725-1775

• BRITISH EAST INDIA COMPANY

• EXPORT AFTER INDEPENDENCE

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 INTRODUCTION

• GOVERNMENT OF INDIA HAS ANNOUNCED

FOREIGN TRADE POLICY AND PROCEDURE FOR
2009-2014.

• ENCOURAGE NEW PRODUCT AND NEW MARKETS.

• PROCEDURES MADE EASY AND SIMPLE.

• IMPORTANT PART OF ECONOMY . 3

 DEFINITIONS
EXPORT:
According to section2(e) of foreign trade (development
and regulation)act 1992, the term export means
“taking out of India any goods by land, sea or air.”

DEEMED EXPORT:
Deemed export means those transactions in which the
goods supplied do not leave the country and the
payment of such supplied is received either in Indian
rupees or free foreign exchange.
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EXPORT ITEMS AND ITS COMPONENTS

EXPORT
ITEMS

PRIMARY SECONDARY TERTIARY

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 PRIMARY ITEMS

1. Agricultural
2. Mining
3. Petroleum

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 SECONDARY ITEMS

1. Food and beverages

2. Textiles
3. Machine and machinery tools
4. Transport equipment
5. Metal and metal product
6. Electrical goods
7. Chemical and chemicals product
8. Paper and paper product
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 TERTIARY ITEMS

1. Telecommunication
2. Power generations
3. Services

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CLASSIFICATION FOR GOODS FOR
EXPORT

PROHIBITED GOODS

RESTRICTED GOODS

STATE TRADING ENTERPRISES(STE)

RESTRICTIONS ON COUNTRIES OF EXPORT

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EXPORT MARKETING STRATEGIES

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 ASPECTS OF EXPORT MARKETING
STRATEGY
1. Determination
2. Selecting the product
3. Identifying product’s target market
4. Production capacity
5. Quality and standards
6. Understanding foreign business environment
7. Deciding method of exporting
8. Export pricing strategy
9. Proper selection of export personnel
10. Proper servicing of goods
11. Timely deliveries
12. Export promotion
13. Financial resources 11
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 Top Indian exporting companies
• Bello Jewels Private Limit

• Prakash Enterprises

• Rishikesh Electromatic Private Limited

• Aura Trading

• Bhawal Steel Agency

• Art Effects Manufacturing Company

• Macoma Hardwares

• Jindal Home Products Private Limited

• Frigmaires Engineers

• Essar Export
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 METHODS OF EXPORTING

DIRECT EXPORTING INDIRECT EXPORTING

• It is undertaken directly by the • It is undertaken indirectly by

manufacturer on his own. the manufacturer on his own.

• The manufacturer can have • The manufacturer may not have

direct control over direct control over
packaging,pricing,promotion, packaging,pricing,promotion,
after sales service. Etc. after sales service. Etc

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• The manufacturer gets the
first hand information
regarding buyers needs,
changes in market
conditions, changes in
competitor’s price etc.
• The manufacturer does not
get first hand information
regarding buyers needs,
changes in market
conditions, changes in
competitor’s prices,etc.

• Risk is low.
• Risk is high.

• It is suitable for small-scale

• It is suitable for large-scale exporters.
exporters.
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 NEWS AT GLANCE
01-12-2011
Subject: Sugar Exports From India May Fall in 2011-12, Czarnikow Says
Sugar exports from India, the world’s second-biggest producer after Brazil, may
fall in the current season from the previous period, according to Czarnikow
Group Ltd.

Shipments in the 2011-12 year that started in October are unlikely to top last
season’s 3 million metric tons, Toby Cohen, a director at the London-based
broker and researcher, said at a conference in the city today.
“We would need to see a very strong crop” in India for exports to rise above
the 2010-11 level, he said.

Raw sugar fell 9.1 percent over the past month in New York trading on
speculation India’s exports would increase. The nation has already allowed 1
million tons of shipments and may permit another million, Cohen said.
Exports are unlikely to reach market expectations of 4 million tons, he said.
Source : bloomberg.com 16
• 01-12-2011

• Subject: US blocks Indian basmati import over

pesticide traces Chandigarh, November 30
the most prestigious market for Indian basmati rice,
the USA, has put on hold all consignments of the
rice being imported there. In a major setback to
Indian basmati exporters, the US food and drug
authority has refused to accept basmati being
exported to that country, on account of traces of
pesticides found in the food grain.

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