Importing goods for business is a good idea for the growth of business. But one should adopt right strategies for long term growth and profitability which further depends on the knowledge and understanding of importer about the international market and foreign market analysis.
Now a day, goods are importing from foreign countries at very large scale because it is very profitable business. You have noted down that the household items and equipment you have in your home may be made in West Germany, made in Japan, made in Korea or made in China. You may have clothing from India, shoes from Brazil, a leather wallet from Italy. Your car may be an import; your stereo equipment may be manufactured elsewhere. There are hundreds of items manufactured all over the world, now being used by the Indian consumer.
So, if you have ability to sell, the import business might be right for you. All you need is the desire and determination to make it work.
Supporting Reasons for Import
There are many supporting reasons which explain why import business and services is growing at such a fast rate:-
Availability: You know that every country has some rich natural sources which other don’t. So, the businessmen have to import those things in their country for the fulfillment of the needs of their country person. For example Bananas in Alaska, Mahogany Lumber in Maine and Ball Park franks in France. India is heavily dependent on crude oil imports with petroleum crude accounting for about 34 percent of the total inward shipments.
Status: Some people like to buy things which are imported from foreign countries because it’s their status symbol. For example: Italian furniture, French perfume, Egyptian cotton, German beer and many other things. It all seems classier when it comes from distant place.
Price: Pricing of imported items is also an important factor. Because price of some products are cheaper than the same manufactured in home country. For example Korean toys, Taiwanese electronics and Mexican clothing, to rattle off a few, can often be manufactured or assembled in foreign factories for far less money than if they were made on the domestic country.
Import in India
The income of middle class consumers in India rises and their increasing levels on expenditure on various products has result a faster rising demand of the Indian import business. Imports in India increased to 35740 USD Million in March of 2015 from 28392.30 USD Million in February of 2015. Imports in India averaged 6225.45 USD Million from 1957 until 2015, reaching an all time high of 45281.90 USD Million in May of 2011 and a record low of 117.40 USD Million in August of 1958. An import in India is reported by the Ministry of Commerce and Industry, India. Major imports of India include cereals, edible oils, machineries, fertilizers and petroleum products, edible oil, sugar, pulp and paper, newsprint, crude rubber and Iron and steel.
Import Regulatory Body
In India, the Directorate General of Foreign Trade (DGFT) established Exim Policy or Foreign Trade Policy for the matters related to the import and export of goods in India. Exim Policy of the Indian Government and is regulated by the Foreign Trade Development and Regulation Act, 1992. All the procedure and policies in matter related to the import is announced by the DGFT through its notification, appendices and forms.