India is aiming to become a self-reliant and self-sustaining nation. As boycott Chinese goods movement is gaining momentum, and there is a push from the government to revive the Indian MSME sector, more and more people are willing to venture in start-ups.
This post is to help you with information on ideas, links, aids, and sources. For all those people who search for “Business Ideas” on google, here you have a shopping cart.
Firstly, let’s understand the basics. Import/Export is facilitated by three main categories of companies. They hold the license and help the domestic business to reach international markets. EMC – Export management company – which handles a-z of import/export according to their specialization. ETC – Export trading company – a bridge between foreign buyers and domestic companies. And finally, Import/export merchants who buy and sell goods.
Large scale industries would apply for license i.e., IEC, and have contacts related to import in corresponding countries. Most of the small and medium scale industries make an order from importers (listed above) and suppliers, they do not worry about the whole picture of the source or origin of their order.
For example, if you are a small-scale Bag manufacturer, and you had to order a good quantity of raw materials, Let’s say zippers. Firstly, you will look for a nearby supplier, you will Google, lookup in yellow pages, Justdial or wherever you can find them. ( FYI, Directorate General of Commercial Intelligence and Statistics maintains a listing of import-export companies where you can find suppliers.) The supplier whom you find will import your order, under a fancy name – HS 9607 Slide fasteners and parts thereof, probably from China for obvious reasons – cheap. Your job is to manufacture bags. The supplier’s job is to sell your requirement and make some profit. You are both in a win-win situation, why would look for an alternative? This is the reason why China is winning in bulk production and supply.
India’s Total Import from China $473,988.29m and the Trade Balance with them is –160,771.04m US Dollars. That’s a huge deficit. You can find the complete list and further details on websites like Ministry of Commerce & Industry, Commercial Intelligence and Statistics, Indian Trade Portal, CBIC.
If you had to turn this tide, what would you do differently? Of course, prioritize domestic suppliers. The government has sought product-wise details of cheap imports, comparison with domestic prices to promote Atma Nirbhar Bharat. But most of all there is a huge gap between demand and supply in India. We are dependent on China not just because it is cheap but also because there is a scarcity of local production.
To fill this gap, the government is coming up with new initiatives and schemes; with aid, resources, incentives; empower MSMEs to grow and progress. Under digital India, websites like Samadhaan, Sampark are launched to apply and track applications by MSME, which is helping many businesses to get quick relief.
Business opportunities that emerged due to boycott of Chinese goods
Locally produced goods are gaining newfound respect in Indian markets. This is the best time to roll-up your sleeve and start something new. Let’s dig deeper into major commodities imported, and find opportunities to make in India.
According to 2019-2020 data, a total of $19103.3m of electronic equipment was imported from China, below are the details of products imported.
Consumer Electronics Revenue forecast shows an annual growth rate of 5.4%, resulting in a projected market to be US$448,191m by 2024. India’s Revenue in the Consumer Electronics segment is projected to reach US$12,171m in 2020, while China stands at US$153,804m (in 2020).
To fill this gap Indian government has come up with many schemes for electronic manufacturing in India. The domestic electronics market in India is to reach $400 bn by 2025. The demands cannot be met unless private players pitch in. Financial incentives and aids are provided by the government to give a push to these sectors. Overall, if you are planning to start investing in the electronic market, now is a good time.
Smartphone manufacturing is in the Spotlight because of the amount of dollars we have spent on importing mobiles. Because of the make in India call, most of the smartphone manufacturing companies like Xiaomi, Oppo, Vivo and OnePlus, have started their assembly plants in India. But is it enough?
The main components in a smartphone are Display, Battery, Memory, Camara, Sensors, etc. and the corresponding dollars spent on import from China is $3308 US million dollars;
Component manufacturing – Ministry of Electronics and Information Technology introduced PLI, SPECS, EMC schemes in June 2020, to make progress in this field. The state governments also strive to promote startups in this sector eg. Startup Karnataka and Start in UP, Maharastra, etc. There are also organizations and forums like India Electronics and Semiconductor Association (IESA) which get together and help its members.
There are two categories of chemicals, organic and inorganic. I won’t get into the difference between organic and inorganic that we learnt in high school. Here in simple terms, you can understand organic chemicals are used mostly for agriculture, and inorganic chemicals are used for industrial purposes.
The total imports of 2019-2020 for organic chemicals were $7969.99 Million and total imports of inorganic chemicals were $746.71 Million.
Imports include Aromatic flavours and specialty chemicals, Electrical insulation, Floor coating chemicals, Heat treatment chemicals, Industrial raw materials, Industrial surface coating chemical, Lubricant and Greece, Paint and Resins and coating, Industrial paints and coating, Adhesive, Plasticizers, Soaps and detergents, Polymers, Rubber, Perfume ryes, Textile binders.
Simply put, Consumers are not going to ask which floor coating chemicals or brands you used. All they care about is a nice shiny floor. And all you ask for is the quality of chemicals and profit you can make. If pharma companies can get acetic acid in India, they wouldn’t spend millions to import it from China. The dependency is not on brands, its on availability.
India needs intensive development and investment in the manufacturing sector. Make in India can succeed if both govt and private units come together.
Coming together is beginning, Working together is success.Henry Ford