Tag: artificial intelligence

The global economy relies on international trade, which is affected by a broad spectrum of events. A worldwide recession in 2023 is one such issue that can lead to global trade slowdown and significantly impact international trade.

A global economic recession is a period in which the majority of countries experience a severe fall in economic activity. It is typically marked by a reduction in Gross Domestic Product (GDP), high unemployment rates, a decline in demand for products and services, and a decline in industrial production. With the 2008-2009 global financial crisis, the last substantial global economic recession occurred.

The current state of the global economy is mixed. Many signs indicate that the world economy is recovering from the effects of the COVID-19 pandemic. Several nations are reporting an increase in their GDP, and others are observing a decline in their unemployment rate. On the other hand, the global economy still faces a number of obstacles, including rising inflation rates and supply chain disruptions.

It is challenging to foresee the future, and it is not definite that a global recession will occur in 2023. Yet, multiple indicators point to the possibility of a world economic recession. For instance, some analysts believe that the world economy’s growth rate could fall, which could result in a recession. Moreover, the impact of the COVID-19 pandemic is still being felt in a number of nations, and it may continue to have an effect on the global economy in the coming months.

The decrease in demand for goods and services leads to a fall in exports. In addition, companies may cut their investment and output, resulting in a decline in imports. Thus, international trade may decrease dramatically during a recession, having a negative effect on the global economy.

Global Impact of Recession

During a global recession, there is often a fall in global demand for products and services, which can lead to a reduction in international trade as businesses and consumers cut down on spending. This can have a huge impact on countries that rely significantly on exports to boost their economy.

The impact of a worldwide recession on international trade will depend on a range of factors, including the severity of the recession, the individual industries and countries affected, and the policy actions of governments and international organizations.

But, it is also worth mentioning that global recessions can lead to more collaboration among countries as they work together to generate economic growth and stabilize markets. In some situations, this cooperation might lead to the formation of new trade agreements and initiatives targeted at improving international trade.

World Economic Recession and its Relation to Global Trade Slowdown

The world economic recession is a phenomenon that has affected economies and enterprises all around the world, resulting in financial uncertainty and instability. It is a severe economic issue that impacts people, businesses, and countries all around the world. It is a period of economic decline marked by major decreases in output, employment, and trade. A recession can be caused by a variety of circumstances, including a financial crisis, political insecurity, or a natural calamity.

Economic growth is one of the most evident indications of a recession. A recession is often distinguished by a negative GDP growth rate, implying that the economy produces fewer goods and services than in the previous quarter or year. Rising unemployment is another symptom of a recession. Many companies lay off workers to cut expenses during a recession, which can result in a considerable increase in the number of unemployed people.

A recession can have severe consequences for individuals, businesses, and governments. A recession can result in job loss, lower income, and financial insecurity for individuals. Consumer spending might also fall during a recession. People tend to save more and spend less when they are uncertain about their financial future. This can have a knock-on effect on the economy, as firms face lower demand for their goods and services.

A recession also has an impact on international trade. When countries’ economies are faltering, they may become more protectionist and erect trade barriers to defend their home markets. This can reduce global trade and have long-term negative consequences for the global economy. Furthermore, a recession in one country might have a knock-on effect on other countries, particularly those with strong commercial relations with the affected country.

It is anticipated that the current state of the world’s largest economies will have significant effects on the global outlook. In addition, a number of factors, including high energy prices, rising interest rates, and war-related issues, are expected to significantly decelerate the growth of international trade in goods. These factors also contribute to the global economic downturn; in 2023, the global economy is projected to grow by only 1.7 . Thus, there is a strong association between the global economic recession and the worldwide trade downturn.

How Does a Global Recession Affect Exports and Imports

During a global recession, the demand for goods and services decreases, which affects international trade, including exports and imports. Here are some ways a global recession can affect exports and imports:

Reduced demand for exports

Consumers and businesses tend to reduce their spending, which can lead to decreased demand for exports. This can lead to a decline in sales for exporting companies, and lower revenues for countries that rely heavily on exports. For example, during the global financial crisis of 2008-2009, the demand for exports from China, Germany, and other exporting countries declined sharply.

Protectionist trade policies

Some nations may enact protectionist trade policies like tariffs, quotas, or other trade barriers in response to the economic downturn in order to safeguard domestic industries and jobs. This can lead to a fall in exports and imports, and a decline in international trade.

Currency fluctuations

The competitiveness of exports and imports is dependent on shifts in currency values. For instance, a rise in the value of a country’s currency can reduce demand for its exports because of the higher price at which they are sold abroad.

Supply chain disruptions 

During a recession, disruptions in global supply chains can affect imports and exports. For example, if a country’s exports are dependent on imported raw materials, and those imports are disrupted due to a recession, the country’s exports may be impacted.

Reduced foreign investment

During a recession, foreign investors may reduce their investments in countries that are experiencing economic downturns, which can lead to reduced exports and imports. This can also lead to a reduction in foreign direct investment in the affected country.

During a recession, import restrictions rise sharply as demand falls and unemployment rises, foreign trade disputes rise to challenge or defend import restrictions, and global trade negotiations lag as public support for trade liberalization melts away due to rising unemployment.

Demand for products and services often decreases, which can result in a decline in exports. This is due to the likelihood that consumers and businesses may limit their expenditure, resulting in fewer export orders. However, some nations may impose protectionist policies, such as tariffs and global trade barriers, to safeguard their own sectors, which might further decrease exports.

Global recession 2023 can also result in a decline in imports, as consumers and businesses cut their demand for foreign goods and services. This can have detrimental implications on economies that rely largely on exports for growth, but it can also have good effects, such as encouraging the growth of domestic sectors and reducing trade deficits.

It is important to note that the impact of a global recession on exports and imports can vary based on a variety of factors, such as the severity of the recession, the industries and nations involved, and the policy actions of governments and international organizations.

To Sum Up

As a result of the recession, global growth is expected to drop significantly, which will have a negative impact on employment, income, and consumption. The global recession in 2023 can impact all areas of the economy.

In spite of challenges such as trade barriers, currency volatility, and supply chain interruptions, India continues to be an active exporter and importer in the international agricultural trade. The agricultural trade in India has a substantial impact on the country’s economic growth, allowing Indian farmers and agribusinesses to expand their global markets and contributing to India’s food security.

Businesses and policymakers need to be prepared for such an eventuality and take appropriate measures to mitigate the impact of a recession on international trade. It is important to note that economic forecasts are subject to change based on various factors, and it is challenging to predict the occurrence of a global recession in 2023 with certainty.

The year 2022 has been one of the most challenging years for Global Trade. The Russia-Ukraine conflict and the spike in Covid cases in China, trade across geographies has effected a huge slowdown on the world economy. Apart from these, rising interest rates and a bump in the inflation in major economies across the globe is further pushing them towards a recession.

While India has been one of the very few resilient economies who have stood strong in these tough times with a projected growth rate of 6.8, the government has been actively working on negotiating FTAs with various countries to boost its trade with its partners. While the Government is assertively negotiating a favourable FTA with UK, EU and Canada, it has successfully hit the ball out of the park with successful closure of the FTAs first, with UAE and now with Australia in the calendar year 2022.

Deep dive into the IAFTA

The Free Commerce Agreement (FTA) between India and Australia, formally known as the Economic Cooperation and Trade Agreement (ECTA), establishes an institutional system to promote and improve trade between the two countries.

The ECTA between India and Australia encompasses virtually all commercial tariff lines between the two countries. The Australian government has decided to grant India privileged market access across all of its tariff lines. Exports to India that rely heavily on manual labour include: gems and jewellery; textiles; leather; footwear; furniture; food and agricultural products; engineering and medical gadgets; automobiles.

The India Australia Free Trade Agreement (IAFTA) is an important milestone in the global trade landscape. The agreement focuses on removing barriers to trade, reducing tariffs and non-tariff measures, promoting mutual investment, and improving market access. This will be beneficial not only to both countries. While 96.4 of Indian Exports to Australia will become duty free, 85  of Australian Exports to India will be duty free. The deal has the potential to further boost bilateral trade between the countries to 50 billion USD in the next 5 years.

Industry wise changes with IAFTA

Indian Products that will get a boost: Garments & Textiles, Gems & Jewellery, Leather and Non-leather Footwear, Furniture, Sports Goods, Automobile parts and Engineering products.

Currently, apparel accounts for a meagre 5 of Australia’s Import with China taking the biggest pie of almost 70. Having said that, Indian Apparel exports to Australia which have steadily increased over the past 5 years would get a competitive edge with a duty advantage over its competitors like China, Vietnam and Indonesia.

The Gems & Jewellery sector, which currently exports 1.2 Billion USD is expected to double to 2.5 Billion USD in the next 3 years. This boost in exports is generating employment for 88,000 jobs in the sector as per the GJEPC.

Australian Products that will get a boost: Raw Materials such as Coal Aluminum, Wine, Pharmaceuticals, Cosmetics.

A cut in import duties of basic raw material would directly reduce import bills of local manufacturers, it would make them more competitive as compared to their global peers. This in turn would boost exports further.

While the FTA would give Indian manufacturers an edge, it would further cast a shadow on the Indian Wine industry. The Indian wine industry has traditionally been shielded by a steep import duty of 150 and would now face stiff competition from Australian Wine makers. Having said that, the agreement only covers 2 of the wine being imported from Australia, while the remaining 98  would continue to attract the duty.

In conclusion, both countries have agreed that they won’t put up trade barriers that aren’t necessary through non-tariff measures. This is to increase transparency.

The IAFTA also set up a Committee on Trade in Goods, whose job will be to talk about issues related to trade. This committee will be very important in improving the two-way trade between the two countries and making it easier for goods to move in both directions.

Overall, the India-Australia Free Trade Agreement (IAFTA) is a big step forward in making the two countries’ economies stronger. It will help trade and investment grow, give businesses new opportunities, and boost economic growth. The agreement will also help consumers because it will make it easier and cheaper for businesses to import and export goods and services between the two countries. This means that consumers will have more choices and prices will go down.

With the world’s largest population, India plays a vital role in global trade. With over 1.4 billion people, there is a lot of potential for businesses to explore new markets and tap into new consumer bases. 

In 2023, businesses in India are expected to see several trends that could affect how you do business. From the increasing popularity of e-commerce to the growth of the shared economy, there are several things to watch. 

As India inches closer to becoming a global superpower, businesses of all sizes scramble to get a piece of the action. With over 1.3 billion people, India is a massive market, and there are plenty of opportunities for businesses of all shapes and sizes.

In business, there is no such thing as a safe bet. Instead, it’s essential to stay ahead of the curve by keeping an eye on the latest trends in importation. By doing so, you can ensure that your products – whether manufactured in India or sourced from elsewhere – have a good chance of success. 

Import Trends in 2023

There are several import trends that businesses in India should be aware of in 2023. Key topics include increasing trade with China, increased investment abroad, and rising consumerism. The Indian business world is poised for big things in the next few years, and there are several trends that you should be watching. Here are some of the Import trends that can change your business in 2023: 

Investment from abroad

Foreign investment has been on the rise in India over the past few years due to several factors, including improving the business environment and infrastructure developments, decreasing costs associated with doing business there compared to other global locations, and more significant opportunities available than ever. 

Rising consumerism

With more people entering the middle class, thanks to increased job opportunities and improved living conditions, they’re beginning to spend more money on imported goods. This shift is expected to continue into 2023 as Indians increasingly adopt Western lifestyle habits – including spending more on luxury items – which directly leads to higher import demand.

Blockchain technology takes hold.

Blockchain is quickly becoming a popular tool among businesses interested in reducing costs or improving security. Blockchain helps with trade operations by making cross-border trade easier, making businesses more competitive, and lowering transaction costs. It also has many potential benefits, such as improved transparency and trust between parties involved in transactions, reduced risk from cyberattacks, and increased speediness and accuracy when processing transactions.

Enterprises shift towards cloud computing. 

Cloud computing has become increasingly affordable over the past few years due to technological advances by companies like Amazon Web Services (AWS). By 2023, nearly two-thirds (64) of enterprises will use cloud infrastructure for mission-critical applications such as ERP or customer relationship management systems (CRMs). The platforms can be used to establish tools and methods for connecting stakeholders such as importers, exporters, insurance providers, transport carriers, etc., in order to enhance communication between units in the ecosystem and secure globally standard operations.

Increasing demand for technology and digital products

With the increasing digitization of businesses and the growth of the e-commerce sector, there may be a continued demand for technology products such as computers, smartphones, and other electronic devices.

Growing demand for sustainable and eco-friendly products 

The environmental effects of consumer and commercial choices are becoming increasingly clear to consumers and corporations alike. As a result, there may be a growing demand for sustainable and eco-friendly products, such as solar panels, electric vehicles, and recycled materials. For example – India has been importing biodegradable products, such as biodegradable plastics and packaging materials, to reduce waste and decrease pollution.

Greater emphasis on supply chain diversification

Following the COVID-19 epidemic, there has been a renewed emphasis on the significance of diversifying supply chains. Businesses in India may import from a broader range of countries to reduce their reliance on any single supplier.

Increased trade with emerging markets

India has a large and growing middle class. As a result, there may be increased demand for imported products from emerging markets such as Brazil, Russia, India, China, and South Africa (BRICS).

The continued growth of the services sector

The services sector is a significant contributor to India’s economy, and this trend is expected to continue in the coming years. As a result, there may be increased demand for imported services such as consulting, finance, and technology.

To Sum Up

Undoubtedly, imports will continue to be vital in the Indian economy in the coming years. But it’s just a matter of how fast and effectively we can evolve as an importing nation. The Indian economy has been upbeat, and companies can take advantage of this trend by expanding their business globally. Businesses need to keep an eye on new trends that are taking place in imports. 

EXPORA offers carefully picked products for all import needs, with a large selection and product range, as well as international certifications and strict QC measures. From the initial quote to the final delivery, businesses can trust nothing less than the highest quality service from Expora.

The Indian economy plays a significant role in the global economy, exporting textiles, pharmaceuticals, engineering goods, and services. In the past, India has also benefited from its strong manufacturing sector and skilled workforce, which has enabled the country to become an attractive destination for foreign investment and export-oriented production.

In the future, India will continue to be a significant player in the global export market, focusing on sectors such as technology, services, and manufacturing. However, the trends emerging in 2023 and beyond will depend on various factors, including economic conditions, market demand, and global trade patterns.

To stay competitive in the global marketplace, it is essential for businesses in India to stay informed about current developments and trends in the economy and to carefully consider how they may impact their operations. Keeping track of changes in market conditions, regulatory environments, and consumer preferences can help businesses make informed decisions and adapt to changing market conditions.

Export Trends in 2023 

As the world continues to become increasingly connected, businesses all over the globe are seeking opportunities to expand their reach and sell their products and services overseas. The export market is one of India’s most promising sectors for business growth in 2023 as global demand continues to grow. 

There are several important trends businesses in India should be aware of when exporting in the coming years. Here are some key trends to keep an eye on: 

Growth of Ecommerce & Digital Exports 

The growth of ecommerce and digital exports will continue unabated as consumers increasingly turn to online platforms for buying goods overseas. Indian businesses that can successfully adapt their sales strategies and deliver quality products will benefit from this trend. 

A Growing Preference for Quality Goods and Services 

Consumers worldwide are becoming more discerning regarding what they buy and want quality products that meet their standards. This trend is especially true in emerging economies like India, where consumers have a growing appetite for luxury goods and high-quality service experiences. As a result, businesses that can offer quality products at competitive prices will be able to attract customers from all over the globe. 

Increased Investment In Technology And Innovation

With so many people living online, companies must invest heavily in technology to stay ahead of the curve. This ensures greater efficiency across operations and allows companies to tap into new markets by offering innovative product launches or customer service offerings via interactive digital platforms such as social media platforms or mobile apps. 

An Ongoing Desire For Global Connectivity

The ongoing desire for global connectivity as an export trend is driven by the increasing interconnectedness of the world economy and society. With the proliferation of technology, people have become more connected than ever before, and this trend is expected to continue in the future. Businesses are also eager to tap into new global markets, and the ability to connect with customers, suppliers, and partners in other countries is essential for success. As a result, the demand for technology and services that enable global connectivity continues to grow, creating opportunities for companies that can provide these solutions.

Grab New Opportunities

China’s economy is slowing down, which is expected to reduce demand for imported goods from other countries. This could spell trouble for companies that rely heavily on China as their primary market. India has already begun gaining significant ground in this area, so Indian businesses must be prepared for this possibility by effectively grabbing the opportunities and managing their margins during new megatrends.

Export promotion measures by the government

There are several measures that governments can take to promote exports and support their countries’ exporting businesses. Some examples of these measures include: Foreign Trade Policy (FTP), Interest equalization scheme (IES), Trade Infrastructure for Export Scheme (TIES) and many such schemes are available by the government.

To Sum Up 

There is no doubt that India is a promising destination for business expansion. The country is experiencing a rapid growth phase, with several sectors experiencing robust growth. This includes the export sector, which is expected to increase in the coming years significantly. It’s not just about exporting but also increasing your business in 2023. You need to take steps for the right kind of expansion and increase your sales figures.

To start with, test different markets and adapt the best strategies based on them. Moreover, use a well-oiled marketing strategy that caters to the needs of each call. If you are ready to dive into this new era with an open mind, you are definitely on track for success! 

We at EXPORA with our physical presence across geographies, keep up with the trends to help exporters and importers to simplify and grow global business.

India’s strategic location near highly populated trading partners like China, Pakistan, and Bangladesh make an ideal scenario for the country to export goods and services. In this read, we will cover the top 11 exports from India by value and the biggest importers the country trades with. The latest statistics for 2021 show that importers bought 53.9 of products exported from India in the United States of America, UAE, Mainland China, Bangladesh, Hong Kong, Singapore, United Kingdom, Netherlands, Germany, Nepal, Belgium and Saudi Arabia. 

From a perspective of continents, 45.6 of India’s exports by value were delivered to fellow Asian countries, while 20.1 were sold to North American importers. India shipped another 19.2 worth of goods to Europe.  

Given India’s population of 1.392 billion people, its total of $394.8 billion in 2021 exported products translates to roughly $300 for every resident in the vast South Asian nation. That dollar metric significantly increased from an average of $200 per capita in 2020. 

The list of products exported from India includes below. The percentage share that these Indian exports represent is in terms of overall exports from India. 

1. Ready-made garments: 45.3
2. Petroleum Products: 14.3 
3. Gems & Jewellery: 9.7
4. Machinery: 6.1
5. Iron, steel: 5.4
6. Organic chemicals: 5.4
7. Pharmaceuticals: 4.9
8. Vehicles: 4.8
9. Electrical machinery, equipment: 4.8
10. Cereals: 3.1
11.  Cotton: 2.5

• Petroleum Products: The export sector of India is greatly aided by oil-based products and giant crude oil companies like Bharat Petroleum, Reliance Petroleum, ONGC and more. 
• Gems & Jewellery: Jewellery can be defined as gemstones, gold and other similar materials. India accounts for about 20 of global gold production. 
• Machinery: There has been a 10.5 increase in the export of heavy machinery from India in 2021. These include cars, pumps, heavy machines and more. 
• Iron, steel: Before Independence, India was largely dependent on iron and steel. However, the radical increase in industrial growth has enabled the country to be the fourth largest steel producer. 
• Organic chemicals: This sector contributes largely to the national economy and is a huge part of it. 
• Pharmaceuticals: Being a research-based industry, the pharmaceuticals sector in India has seen huge growth over the past few decades. 
• Vehicles: Being one of the largest steel producers in the world, India invests largely in the automobile sector. 
• Electrical machinery: India has the third-largest pool of electronic engineers and scientists. The domestic demand for electronic goods has propelled the industry to grow by leaps and bounds.
• Cereals: India is one of the leading exporters of cereals and the second-largest producer of rice. Being an agriculture-driven country, India depends largely on its exports of cereals. 
• Cotton: India is the second-largest cotton-producing country growing 23 of the world’s cotton. It also has the largest area under cotton cultivation. 
• Ready-made garments: Textiles are the trump card for India. The country is a large producer of jute and owns about 63 of the global share of textile exports.

Expora provides services to a majority of the export categories mentioned above. We provide assistance to your export and import requirements by building a network of global hubs to enhance international trade with a tech-first approach.

• Gems & Jewellery: This comprises various types like diamond-studded jewellery, plain gold jewellery, antique gold jewellery and platinum jewellery. 
• Fashion & Textiles: Entire gamut of Knits & woven across different segments of fabrics & apparel.

Agro & Food: Wide range of commodities & brands across packaged and branded food, spices, nuts & seeds, herbs & seasonings and more.

EXPORA is creating new trade linkages through our in-house curated global marketplace. We are addressing supplier challenges like new demand generation, increased global exposure, and an extended export arm.

If you want to enter India’s export industry, this is the right time. With the ever-growing demand, and evolving technology, you can make a lasting impression if you have the right product. EXPORA helps you achieve your dream of import and export with its growing network of global hubs built to grow and simplify global trade.

When it comes to running a successful business, it is always easier to trade on your home turf. However, we cannot neglect how technology has made the world smaller. It has made it easier for businesses of all sizes to profit from the many advantages of international trade. Going global can enhance your business and offer the perfect pedestal to a world of opportunities. 

If stats are what you are looking for, then let us tell you that export business from the country is only on the rise. India’s merchandise export in January 2022 was USD 34.06 billion, an increase of 23.69 over USD 27.54 billion in January 2021 and an increase of 31.75 over USD 25.85 billion in January 2020. 

Today, we have greater reach and ability to find success for our businesses in the global marketplace than ever before. While several strategies must be considered and implemented, let’s first look into the advantages of foreign trade for your business. 

• Increased revenue:

One of the top and most lucrative benefits of international trade is that you may be able to increase your potential clients as your market share increases. Each country you add to the list can open up a new path to growth and increased revenue.

• Lesser competition:

Your product and services may have to compete in a smaller, domestic market, but you may find that you have less competition in other countries. 

• Better risk management:

One of the significant advantages of global trade is market diversification. Focusing only on the domestic market may expose you to increased risk from economic downturns, political factors, environmental events and other risks. It’s as simple as not putting all your eggs in one basket. Not being dependent on a single market may help you mitigate potential risks in your core market. 

• Access to export funding:

Another advantage of exploring international trade is that you may be able to leverage export financing. 

• Enhanced reputation:

Doing business in other countries can boost your company’s reputation. Successes in one country can influence adjacent countries, raising your company’s profile in your market niche. It can also help increase your company’s credibility overseas and in the domestic market. 

These are just some of the many benefits of international trading. Exposure to the world’s realities outside your home base may even help upgrade your current offerings. It helps open up ideas through the feedback and experiences we gain from outside the boundaries of our own country. 

If you wish to expand your business in the overseas market, below are some strategies you can implement before you dip your toe in the unknown. 

• Think small:

Confused? Hear us out! If you were launching a new product or service for the domestic market, would you skip the prototype and go for the most elaborate version of your product? No! You would start with a minimum viable product. You would streamline your process and test market a simple version of your brainchild. Likewise, you don’t have to begin your global expansion with an elaborate offering in the first go, whether you are marketing a product or service. 

Starting out with the primary product with help gauge reception in foreign markets. You will be able to determine whether your offering will succeed. You can set the right price and get valuable feedback by thinking small.  

• Go global while sitting in the domestic market:

When you go global, it is crucial to understand your new market, culture, customs and language. This may make it hard to market. However, you can easily take time to reach out to immigrant communities to get an insight into practical strategies for launching your offering in foreign markets. This way, you are beginning your cultural education before you invest money in a different country and open your home-grown business up to a host of new clients. 

• Find a local partner:

As an entrepreneur, you must realise that you don’t have to figure out everything yourself. There is a globe full of wise, experienced people, and partnering with folks who know their stuff is essential. 

Starting a company in foreign markets is a daunting task in terms of legalities, language and culture. Finding a partner in the new foreign market of your choice can be a fantastic way to explore global expansion.

These strategies are a great way to boost your way into the global marketplace, but it can still be an intimidating experience to step into the unknown. This is where EXPORA walks in. 

We are here to simplify and grow global trade by building a network of global hubs to enhance international trade with a tech-first approach. We are here to solve global trade challenges through our in-house platforms. With a focus on four categories: Agro & Food, Gems & Jewellery, Fashion & Textiles and Personal Care & Beauty, EXPORA has got you covered with a system that alleviates trust deficit in the global ecosystem through our EOR (Exporter On Record) and IOR (Importer On Record) services. 

Reach out to us at contact@expora.in for more information on our services and how we will set you up with all you need to succeed in the global market.

Export business has one of the most influential impact ever since the pandemic occurred. The exports from India have decreased significantly in the market as most products are import-dependent. Sectors are diversifying themselves to cope with the changes Covid-19 has brought it. 

India’s annual goods exports crossed the $400 billion mark for the first time in March 2022. This was a significant increase from the negative $154 billion export trade during the same period in March 2021. Though this growth is a cause for celebration, Indian export to the world have the capacity to compete with China. China’s goods exports stand at a staggering $3300 billion. 

Bridging the gap and competing with the top contenders requires up-gradation from every angle possible. Trust becomes a crucial factor when it comes down to exporting products. Producers need a fair hand of knowledge with the supply chains they are integrated with.. With trust, comes the responsibility of providing flawless services. 

Succeeding in the export business requires a systematic approach and here are 6 conditions that can be followed to ensure success in exporting products from India.

Integration with a Reliable Supply Chain

The export business works in a profitable manner when the product supply chain  is well-integrated with industries. The Indian food processing sector accounts for 32 of the country’s total food market. Despite being the world’s 6th largest in terms of agricultural & food production, India lacks behind when it comes to exporting products from India to other countries. 

Supply chain integration has become even more important when there are disruptions in the transports, and connectivity gaps due to large distances. SMEs who rely on locally based supply chains, are facing issues to increase their volumes of supply. Their capital and technology requirements need to be upgraded accordingly. This will ensure their long run in the field of export business. 

Laboratory to meet Global Standards

India’s climate demands a high level of expenditure on laboratories and maintenance. But, there is a huge gap in infrastructure needs and infrastructure built. Exports to countries like the US and the EU require several affirmations from lab-based reports to confirm the originality and quality of the product. 

This can be elaborated with the decline in Basmati exports from India. Basmati was exported for 3.5 billion worth in 2021-22, the lowest since 2019-20. Several factors are involved, but one of the main factors is the fungicide issue while exporting to EU. A well-stored and reserved rice in laboratory could have saved many billion dollars worth of basmati. In-house labs are the need of the hour. 

Support from Ground Level in Terms of Compliance

SMEs are not well aware of many regulations, one of which is the compliance regulations of the Bureau of Indian Standards(BIS). They fail to apply the set regulations and get fined for violating export imports standards. 

Compliance regulatory regime is a hectic process, given many documents goes through the scan of authorities. Failing even one could shutter your dream export business. A mediator with ground level compliance team is the one firms should be looking forward to. From maintaining the quality standards to making the presence felt at the international level, firms can easily grasp many new regions with large business opportunity. . 

Wide Product Selection for Sustainable Exports 

The import and export business in India relies heavily on single-sector exports. One of the sector that relies heavily on one product export is the frozen foods. India exports frozen shrimp, which constitutes more than 50  of the total frozen foods. Such imbalance exports can create issues whenever a season of low production comes into the cycle.

Sustainability has becomes the buzz word in every field, be it business or investments. Exports is no exception. Sustainability in exports through wide range of products exports has become necessary for many businesses to thrive longer. Customizable packaging to bulk packaging, everything needs to undertaken in a sustainable manner.  

Presence of Industry and Domain level Experts

Industry experts in each sector provide the much-needed unbiased information and tactics to excel in the export business in India. This helps businesses ride out the fluctuations in the market and mitigate risks, while at the same time ensuring profitability. 

Industry expert with a wealth of experience in export business can make tailor-made plans for easy executions. This is especially beneficial when enterprises aim to tap the markets of GCC and US.  From analyzing the market, to assessing the opportunities and risks, veterans can bring out the best from the existing facilities of SMEs and gain them global footprint. 

Capital Management and Financing

Any business requires a certain amount of capital to get started. This is especially true for businesses that are involved in exporting goods and services. In an export business, capital is required to cover the costs of shipping, warehousing, and marketing of the products. There is also need of forex management to cover the costs of any tariffs or import taxes that might be imposed on the products.

Of course, the amount of capital needed will depend on the size and scope of the export business. Forex management, Insurance, credit financing and payments should be under the radar of the firms. Such capital financing and assurance can make the export business reliable. 

Agility and Trust Is the Advantage of EXPORA

In today’s business world, trust is more important than ever. With the globalization of the economy, businesses are increasingly export-oriented, and trust and agility is essential for export success. In the exporting context, agility is essential for responding quickly to changes & Trust is essential for establishing relationships with customers, suppliers, and partners.

EXPORA is a brand that can help in building futuristic and reliable relationships with a wide variety of sections of people. Remaining at the top of your business, all the time can be hard with the changing trends of market. This is why EXPORA is here to ensure the definitive presence of those who explores the path with it.  Contact us at contact@expora.in today to learn more about our offerings.

Trade and payments are vital to the growth of an economy. This facilitates the exchange of goods and services between different sectors and helps in balance of payments. Economic globalization and global trade have brought new expenses and increased competition.

Many challenges confront companies involved in export business, including currency fluctuations, tariffs and regulations, and logistics concerns. Businesses must partner with knowledgeable and experienced customs professionals who can help them navigate the complexities of import export businesses to mitigate the risks associated with these challenges.

Various sectors of the Indian economy are experiencing a shift as issues in exports from India have emerged with the surge of COVID-19. It has become increasingly challenging to keep up with the changes, and the companies need professional assistance. Indian businesses must overcome four significant obstacles to succeed in the export business. 

Stagnation of Growth

Import and export decides the growth trajectory of any trading firm. Dividends and ROI of a firm are distributed equally amongst all its potential capacities, such as skill sets, export and import analysis, market fluctuations, and others.

Trade challenges often arise from unplanned growth or disruptive innovation. Such unplanned growth has disrupted the already declining sectors. As an example, over the past decade, India’s share of global apparel exports has remained at 3-4 per cent. This has made the apparel export sector face challenges in terms of growth.

Lack of Capital

Traditional trade had a high dependency on communication, but the availability of capital facilitates modern exports businesses. From the lowest rung to the highest level of the value chain, capital is the materialistic object that keeps firms isolated from global supply chain issues & challenges.

The Indian export sector can have a massive shift from its present scenario if the capital influx and access increase. For example, the leading supplier of capital to export credit agencies in India, i.e., EXIM bank, borrows 2-3$ billion annually. This doesn’t come as a surprise as the allocation from the fiscal budget is relatively less, given the export sector is rising in India.

The increase in trade wars between nations, which include retaliatory measures such as tariff changes, and phytosanitary measures, made capital availability even more rare. The export sector is facing increased interest rates on their loan requirements, as their existing loans could not be paid off.

Shortfall in Technological Advancement

Market advancement and its commensurate complexity have brought in multiple exports challenges. Such complexities can be either a boon or a curse. It all comes down to the convenience of the firms and enterprises in terms of their technological requirements and expertise.

Indian firms are very backward in terms of their technology adaptation. Industries like coal mining can easily use Artificial Intelligence to leverage the best out of the existing mines. Countries like US and Australia are far ahead of India in such usage. This has led to significant imports of coal needs rather than exports.

Technology can also be beneficial for many export industries as they can use technology to manage their order, process the manufacturing and what-not. With manual methods, exports are delayed, and they lack expertise in expediting the process.

Networking Shortages

A famous quotation by Tim Sanders dictates the modern trade, i.e., “Your Network is Your Net Worth”. Your network effectively and efficiently gives a birds’ eye view of your company’s presence in vast, extended areas. Connecting across industries becomes difficult. Having teams across multiple domains, even if unrelated, has been the trade experts’ solution to remote crises.

Food sector faces a significant gap in terms of networking. Large number of producers go through middle men to export their produce. This increases the prices for the end-users. Exports become segmented throughout the country since every producer does not have the capacity to export at high prices.  This is one of the reasons for the poor integration of the Indian exports in the global supply chain.

How to Bridge the Gap with Seasoned Industry Players: EXPORA is Your Savior and Solution

Being an Industry expert, its quick turnaround time has been recognized across the export business domain. EXPORA will facilitate the trade barriers with innovative solutions. Want to know how? Read along.

1. Scouting new buyers in new geographies while maintaining an experienced on-ground International Sales Team can spread the market base quickly. Such a portfolio will not widen reach and scope but also get the firm into quality connections. From digital marketing to packaging, name any, EXPORA is the answer.
2. Access to the cheapest influx of capital at prices that makes firms jump right into an agreement with EXPORA is its USP. If the firms are facing issues in capital expenditure, revenue scouting or even Warehousing infrastructural needs, joining hands with the best is the solution to increase global footprint. 
3. Are you an export giant wanting to be abreast with technology? Equip yourself with sustainable solutions while growing at a fast pace? EXPORA is here with agile innovations. From Digital Cataloguing to in-house ERP, EXPORA stands tall. In a market of volatility, EXPORA can transform the international trade challenges into opportunities.
4. Domain specialists and teams across a wide range of areas and functions make the firms perform without a halt. Building such a blended team with strategists and industry veterans confirms enterprises presence in the supply chain. Experts turn a small-sized business into a powerhouse of multi- billion-dollar consignments. Tech-first EXPORA offers many mining abilities from the market.

India’s Exporters Need EXPORA’s Experts’ Solutions and Advice

Trade barriers can be exhaustive, but they are also vital to the global economy. Sustaining means improving, and that comes with expert solutions and advice. Advice that ranks the firms from the rookie level into domain specialists in the market. This article looked at some of the challenges faced by businesses engaged in trade from an Indian perspective. For powerful insights into the world of exports and imports, join hands with the best in business, EXPORA. Reach out to us at contact@expora.in

ChatGPT has been in the headlines lately on real world applications of AI and how it can be used to further automate and optimize overall processes.
The use of artificial intelligence (AI) has the potential to cut trade costs, increase efficiency, and stimulate new ideas among businesses. The economic and social effects of AI are receiving increasing attention, and this has sparked curiosity about the trade implications of AI. While artificial intelligence (AI) has the potential to significantly alter international trade and business models, trade is also a crucial mechanism through which nations and businesses gain access to the goods, services, people, and data necessary to construct AI systems and to implement AI solutions on a global scale.
Let us further analyse how AI can play a key role in Global Trade and further enhance the import and export process in global trade.

Some ways that AI could be used include:

 

1. Predictive analytics: When we talk about global trade, there is an ocean of complex trade data freely available on the Internet. AI can further break down this complex date to predict market trends, identify potential markets, and make specific recommendations on GTM strategy for various products across markets. Furthermore, AI-based predictive analytics can help businesses to forecast demand and optimize inventory levels, which can reduce the risk of stockouts and price volatility.
2. Automated Document Creation & Processing: One of the biggest challenges today exporters face is the tedious process of manual data entry for creating Export Documentation. Accuracy of documentation becomes another key challenge. AI can be used to automatically extract data from documents such as invoices and bills of lading, reducing the need for manual data entry helping exporters scale their operations with minimal effort.
3. Automated Shipment Tracking: An intelligent system can further be used to track shipments, send out key alerts and keep stakeholders updated on the status of shipments. AI can be used to look at shipping data and predict problems or delays before they happen. This gives the company a chance proactively informthe customer and take steps to fix the problem. Overall, using AI to automate shipment tracking can improve the customer experience by giving accurate and timely information about shipments.
4. Supply chain optimization: AI can be used to analyze global trade trends to further predict sea freight costs which can help businesses plan their shipments and also optimize sea freight costs. It can allow for more efficient and effective supply chain management by identifying demand and supply gaps which would further help predict global shipping prices and help companies make informed decisions.
5. Risk Management: AI can be used to identify potential risks and fraud in trade transactions and alert the relevant parties, so they can take action to mitigate it. It can be used to monitor and analyze external factors such as geopolitical risks, natural disasters, and other events that may affect trade. This can help businesses to make more informed decisions and take proactive measures to mitigate potential risks. Additionally, AI can also be used to optimize trade finance, such as letter of credit, invoice financing, and supply chain finance, by automating the process and reducing the risk of fraud.
6. Smart contracts: A combination of blockchain technology and AI can be used to create smart contracts, which are self-executing agreements with the terms of the agreement directly written into the code. This can facilitate and speed up the process of concluding trade agreements and reducing the trust deficit which is today acts as a major hurdle to global trade today. The integration of AI can improve the adaptability and functionality of smart contracts. The use of technology in international trade can lower transaction costs, promote transparency, and enhance the overall effectiveness of global trade.

Overall, the use of AI can help businesses to improve their operational efficiency which can help to ensure the stability of their trade operations and ultimately increase the confidence in the global trade ecosystem.

EXPORA as every other company will use AI to improve operations and partner benefits. AI can be utilized in risk management, supply chain efficiency, customer service, and marketing. Partners at EXPORA will benefit from the newest technology and solutions, giving them a competitive edge.EXPORA’s unique IOS model is specifically designed for businesses involved in cross-border trade. It can help you with a range of features to support the full lifecycle of import and export, including data-driven market insights to help businesses make informed decisions and grow their operations.A great platform for traders, exporters and importers to manage their process end to end with the help of technology.