Reasons for exporting:
- To expand the business and to reduce the dependence in the local market
- To earn foreign exchange
- To increase the profit
- To explore newer customers and vendors in the overseas
- To spread the risk, such as, to offset lack of demand for seasonal products
- It improves the economic condition of the country
Exporting a product is a profitable method that helps to expand the business and reduces the dependence in the local market. Government of India is also supporting exporters through various incentives and schemes to promote Indian export for meeting the much needed requirements for importing modern technology and adopting new technology from MNCs through Joint ventures and collaboration as well as to improve the balance of payments position of the country.
We shall study about this article further, in detail, in our next post.