Granite is a primary component for construction and its global demand is escalating every passing day. The granite export from India has witnessed huge growth in the past few years owing to its unparallelly quality. The data of Indian grant export manifest that more than 140 nations frequently import Indian granite. Therefore, setting up a granite export business in India is a lucrative and viable business option. But, there are some legal implications linked with this business model that needs to be taken into account. Let us now take a close look at how new businesses can export granite from India in a legitimate way.
An Overview on Granite Export from India
The data of Indian granite export reflects that there is a huge demand for Indian granite all over the world. Over 140 nations import granite from India that worth around $498 million every year.
The granite export business predominately depends on the following five nations:
|4||Saudi Arabia||$13 million|
How Profitable is Granite Export Business in India?
India is one of the leading producers & exporters of granite in the world, with the industry being worth more than Rs 250000 crores. At present, India holds more than 4 trillion m³ of granite.
Moreover, the data also shows that around 97% of the total reserve is yet to be explored, which negates the possibility of a supply crunch. India’s contribution towards total granite production has been estimated at around 15%. Furthermore, India holds more than 100 varieties of granite, out of which 60 are commercially viable.
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Following are the states that possess the largest granite reserves in India
- Tamil Nadu
- Andhra Pradesh
Strong supply and a wide array of varieties make the granite export business a promising business option for start-ups. Note that almost 85% of the Indian granite makes its way to importing nations.
The table below manifests the Harmonized System Code* for granite export. Please remember that the Directorate General of Foreign Trade (DGFT) formulates these codes.
|1||Crude or raw blocks||HS* Code: 25161100|
|2||Building stone||HS Code: 68022390|
|3||Blocks or slabs||HS Code: 25161200|
|4||Carved or processed granite||HS Code: 68029300|
|5||Polished blocks and tiles||HS Code: 68022310|
HS*: The Harmonized System refers to a global nomenclature for the products’ classification. It enables participating nations to classify tradable commodities on a common basis for customs purposes. At the global level, Harmonized System (HS) is a six-digit code system.
Legalize way to export Granite from India
- The company incorporation is the first step toward setting up a granite export business in India. Please note that legal status is pertinent for carrying exporting activities in India. Make sure to choose a business structure that gives the best fit for your scope of operation.
- Once you incorporate your establishment with the Ministry of Corporate Affairs, apply for Permanent Account Number in the name of your company.
- Next, open a current bank account in the name of export for availing of financial transactions.
- Next, you need to approach DGFT and obtain IEC, import-export code.
- A business owner can leverage government avenues in importing countries to identify potential buyers and vendors. Furthermore, the company must enroll with Export Promotion Councils and Commodity Boards to access benefits rendered by the government.
- Draw a contract with a trusted shipping agency to ship your product abroad in a legit way.
- Once you are ready to export, you will require addressing some legal formalities to clear the shipment from the custom. We advise you to approach a customs housing agency to serve such a purpose.
Common Documentation for Granite Export from India
- Certificate of Incorporation
- Company Permanent Account Number
- GST and other tax registrations
- Import Export Code* (IEC)
- Registration-cum-membership certificate from the EPCs
- Customs clearance documents, such as Bill of Lading and packing list
How to Avail Import Export Code* from DGFT?
Step 1: Open the following link to reach out to DGFT’s portal. https://dgft.gov.in/CP/.
Step 2: Tap on the “Apply for IEC” button
Step 3: On the following page, submit the registration details such as name, contact number, email id, Pin code, and City.
Step 4: Hit the Send OTP tab to get the code on your contact number and email id. Once done, go back to the home page, and select the “Apply IEC” button, and complete login formality via login credential.
Step 5: After login, start filling IEC registration form. The form seeks the following detail from your side.
- Business detail
- Bank account details and canceled checkbook
- Preferred sectors of operations
- Acceptance of Undertaking/Declaration
Once you provided the aforesaid details, tap on the “Save and Next” button.
Step 6: Scroll down to the bottom of the page, tap on the “Sign” button.
Step 7: Use either DSC (Digital Signature Certificate) or Aadhar OTP for the form submission.
Step 8: Make an online payment against the application through the payment gateway.
After submitting the e-form, the authority will verify it for potential discrepancies. This process may take some time. The applicant has to wait for the certificate until the authority stamped their approval on the application. Upon successful authentication, the authority confers the IEC certificate to the applicant via their online portal. Users can download this certificate from the “Print Certificate” option listed in “Managing IEC.”
Granite export is certainly a profitable business option for Startups India. Considering the past export data, it seems that global demand for Indian granite will rise stably in the future. This is the perfect opportunity for entrepreneurs who are eyeing to set up a business model that ensures long-term sustainability and stable profit for years to come.
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