Moving goods from a domestic country to overseas buyers is a process of export and it is done by types of exporters in India

Type of export houses sell various goods to overseas buyers and get foreign currencies to India. Types of exporters boost India export and strengthen the Indian economy.  

Global Trade And Exports

The globe has become a single trading hub due to advanced transportation. Merchants and traders import and export goods through various means. They rely on airplanes, ships, rail, and roadways to carry out trade.

International borders act as a barrier, but trade transcends these obstacles. It is one of the major contributors to any country’s gross domestic product (GDP). And export happens when goods and services produced in one country are sold in another nation. The foreign buyer is called an importer, while the seller of such goods and services is called an exporter.

The most popular goods exported are rice, textile, oil, vehicles, and computers. Manufactured items, aircraft, weapons, food, and chemicals are also actively sold overseas. Some exporters also deal in computers, electronics, and live animals. China, USA, Germany, and Japan are the global leaders in the trade. Their foreign exports’ value ranges between US$738 billion to US$2.5 trillion.

The Role Of Exporters

Let us discuss how many Types of Exporter in India fulfill the export demand and its requirement.

An exporter sells goods and services in an overseas market. This trading activity brings money into the country’s economy. The exporting nation’s GDP increases and it achieves a better standard of living and economy. However, the net GDP is calculated after subtracting the imports to the country.

• The large exporters contribute to 50% of the total global GDP.
• They also contribute to a total of 30% of the global trade.
• Exporters follow rules and regulations to abide by the law.
• They try to make products cheaper for global consumers.
• Exporters also strive to strengthen intellectual property rights.

Types Of Exporters

There are different types of exporters based on the business model. The differences also extend to licenses, distribution channels, and legal considerations. The following exporters create success stories through their innovation, investments, and insightful natu

• Manufacturer cum Exporter

Large businesses and organizations participate in this trade. They manufacture export-quality goods to sell abroad. They also procure and process raw materials into finished goods. Normally, they don’t depend on intermediaries or middlemen to export.

Manufacturing and then exporting has a huge risk involved as it requires huge investment and capital to start manufacturing. There would be a limited option to switch from one business to another if the product does not work or the demand for the product being manufactured drops.

• Merchant Exporter

These exporters are primarily smaller, specialized organizations. They act as middlemen between manufacturers and foreign buyers. They procure orders directly or indirectly through their agencies. They adopt a strategy that focuses on risk reduction and profit maximization.

My company works as merchant exporter. We export a lot of machinery and equipment by procuring from the reputed and branded multinational manufacturing companies.

Unlike the manufacturer cum exporter, the merchant exporter has a free hand to switch from one product to another if the existing product does not work or the demand for the product in exporting countries becomes less.

The merchant exporting will be the first option if you are planning to jump in the field of exporting the world.

• Service Exporter

The service exporter specializes in non-physical or intangible products. He usually operates a company that delivers services to a foreign client. As a result, the country of his residence benefits immensely. Some well know services include software, healthcare, hotels, and consultancy businesses. The foreign client can be a full-fledged company or a single person.

• Deemed Exporter

Deemed exporters do not participate in a trade like regular exporters. Their operations involve a special category of goods called deemed exports. In such transactions, the goods supplied do not leave the country of origin. While payments made for the supplies are done in native currency or free foreign exchange. Some deemed exporters act as middlemen and sell to foreign customers.

My Company is the direct exporter and it acts as deemed exporter some time while supplying goods meant for export to its associate companies.

In this case, we buy the goods on the local GST billing and sell it to the company that exports to its overseas client.

This is worth mention that the direct exporting receives all the export benefit the Indian government provides but the deemed export is not eligible to receive export incentives and other export benefits.

A deemed export is just a kind of local sale and purchases business activities and no export benefit would be availed.

• Project Exporter

The globe has become an inter-connected place due to technology. Some exporters exploit this reality by undertaking overseas projects. They recruit and deploy personnel to work for a foreign client. These exporters are subject to national, regional, and international laws and acts.

Global Business Value

Some of the global organizations which oversee regulations are WTO, NAFTA, CAFTA-DR, GEE, etc,.  GEE or the global economic system is a social network that facilitates international sales. Export to different countries is not as risky as before. So the various exporters add value to their industry.

• All the exporters undertake global-level risk to carry out trade. They rely on assistance to overcome trade barriers and achieve profits.
• International sales have become safe, secure, and efficient. Streamlined global finances and banking ensure reliable payment methods – both online and offline!
• Small and medium-sized companies cater to domestic markets and they may expand into global markets to meet the export demand.
• A large number of goods and services find global acceptance. Therefore, even small, mid-sized companies can safely export their products.
• Global trade overcomes cultural and linguistic barriers. Interpreters and the English language act as an effective conduit between the exporter and the foreign buyer.

Conclusion

Take away from this blog is to start exporting as merchant exporter so that you could start with the small budget and experiment. If any turbulence of slowing down the chosen export occurs, you would change the export product easily with marginal cost to spend.

Direct exporting to avail export benefits is recommended. Avoid manufacturing in the initial days of exporting. A deemed export is for a time when you are not able to do the direct export?

Keep the deemed export as last option

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Countries exporting rice

Rice is mainly cultivated in Southeast Asia and the Indian subcontinent. It is also exported by some countries in Europe, the Americas and the Caribbean. India is the largest exporter with 32.5% at US$7.1 billion. Thailand is the next largest with 19.2% exports valued at US$4.2 billion. USA, China, Pakistan, and Vietnam export 5% to 8% valued at $1 to $2 billion. Spain, Belgium, and the Netherlands do $200 to $300 million business. Italy has a market share of 2.9% at US$624.3 billion. Other major players are Myanmar, Cambodia, Uruguay, Brazil and Paraguay with a combined value of US$1.9 billion.

Countries importing rice

India, a major exporter, offers Basmati and Non-Basmati varieties.  Basmati is imported mainly by Saudi Arabia, Iran, Iraq, UAE, and Kuwait. They import between 1.8 to 9.5 million metric tonnes per year. The UK, USA, and Yemen Republic follow suit with 1.8, 1.2, and 1.4 million metric tonnes per year. The total worth of exports amounts to US$2.5 billion. The Non-basmati variety is chiefly imported by Nepal, Senegal, Benin, Bangladesh, Guinea, and Ivory Coast. These countries import anywhere between 7.7 to 4.3 lakh metric tonnes of rice. UAE, Somalia, Indonesia, and Liberia also import a combined quantity of 12 lakh metric tonnes.

Which country is on the top to export rice

India is by far the largest exporter of rice in the world. It exports US$7 billion worth of rice amounting to 32.5% of the global share. The shipments mainly reach the Gulf, African, and Caribbean nations. Iran, UAE, and Nepal request bulk imports amounting to 40%, 33%, and 23% respectively. The country exports both Basmati and Non-basmati varieties worth billions of dollars.

Which country is on the top to import rice

Nepal is the largest importer of Non-basmati rice from India. It receives 7.7 lac metric tonnes of rice at a value of US$245 million. Saudi Arabia and Iran have a huge demand for Basmati rice from India. They import 7 to 9 lakh metric tonnes at US$570 to US$840 million. The imports from these nations have decreased in recent times by 22% to 33%.

What type of rice is exported and which one is more famous for export

Basmati is a long, slender, and aromatic rice variety. It comes in two different colours, white and brown. The rice is used to cook delicious and flavour-filled dishes like biryani, fried rice and pilaf. The high-quality variety is also more expensive. But, it is preferred by oil-rich nations like Saudi Arabia, UAE, Iran, Iraq, and Yemen. The non-basmati varieties cost a lot less and are bought by Nepal, Senegal, Bangladesh, Indonesia, Liberia and Guinea.

India is specialized in what type of rice for export and what is the volume of rice

India grows more than 6000 species of rice varieties all across the country. The most popular ones are, undoubtedly, the basmati type. Importers also opt for non-basmati species like sona masoori, gobindo bhog, ambemohar, seerga sambha, mullan khazama, etc., The Basmati variety is grown in North and North-Western India. More than 40 lakh metric tonnes of this species is shipped to various countries. It has a total value of US3.5 billion dollars or 22,000 crore Rupees. The rice is exported to Saudi Arabia, Iran, Iraq, UAE, and Yemen. The non-basmati exports, valued at US$1.6 billion, weigh 48 lakh metric tonnes.

Which region is more famous to export rice in India

Rice constitutes 2% of total Indian exports to other countries. The sector has grown at CAGR of 14% between 2010 and 2019. Haryana is by far the topmost rice exporting State in India. It shipped US$ 2.4 billion worth of rice in 2019. It has a CAGR of 3%, followed closely by the Western state of Gujarat. Haryana exports different kinds such as Sugandha, Sharbati, Parmal, RH-10, etc., It also ships traditional, PUSA, 1121, and 1509 varieties of the aromatic Basmati rice.

Who are the suppliers of Indian Rice

Haryana, Gujarat, Delhi, West Bengal, and Andhra Pradesh are major rice cultivators. In Haryana, R.P. Exports, K.S. International, Goel International, Sri Krishna and Hanuman Rice Mills are popular. Other suppliers include Rice India Exports, Indus Food Products, Dolphin International, Amira Food, Priyanka Overseas, United and Jaishree Exports. Exporters like Adani Wilmar, Al Gyas, Al Maha Foods, Amba/Arm/Balaji Overseas focuses primarily on Saudi market.

Who are the buyers of Indian rice

Indian rice is shipped all over the world by various suppliers. The major buyers are Saudi Arabia, Nepal, Iran, UAE, Iraq, Yemen, Senegal, and Ivory Coast. Other importers include Benin, USA, Liberia, Bangladesh, and the Caribbean nations.

Price of Indian export rice

The 5% parboiled, broken rice variety costs US$ 470 to 480 per tonne. Last year its price varied between US$358 to US$365 per tonne. The more expensive and aromatic Basmati species has a price range of US$ 1200 to US$ 860 per tonne. The non-basmati variety is priced at US$ 400 to 420 per tonne, while Sella type sells at approximately US$500 to 530 per metric tonne.

Price of other Countries suppliers’ rice

The 5% broken rice from Thailand is priced at US$560 to 570 per metric tonne. USA rice prices range between US$430 to 564 per tonne. Broken, white rice from Vietnam costs US$370 to 380 per tonne. While Chinese suppliers offer their variety at US$457 per metric tonne.

Future of Indian export rice

India exports a major portion of its Basmati rice to other countries. The non-basmati varieties also yield good profits. India grows rabi crops during dry monsoon, while Kharif crop is grown during wet monsoons. Western states grow Kharif rice while Assam, TN, WB, and AP grow the rabi crop. The exports have seen a decline in recent months. UAE and Yemen are major importers and regional tensions are not helping the rice imports. However, exports to Saudi, USA, Benin and Iraq have grown by 4%, 10%, and 8% recently.

What is the tariff against Indian rice

India mainly exports large quantities of basmati varieties. The rate of duty for this variety is Rs 12,000 per tonne. This is approximately US$150 per metric tonne of Basmati rice.

Which countries come to MFN for rice export

Most Favoured Nation(MFN) is a multilateral trading system’s principle under WTO/GATT rules. All member countries extend this status to each other. India’s MFN in rice export business include Sri Lanka, Nepal, and Bangladesh. Pakistan has been denied the status in 2019 due to political tensions. Gulf nations like Saudi Arabia, UAE, Kuwait, Qatar, Bahrain, and Oman also receive this status. India does billions of dollars worth trade with these nations, that includes rice exports. The MFN status ensures trade equality between nations, without imposing any bias or partiality.

Is there any export barrier for Indian rice?

Indian rice exports are very dynamic and span the whole world. However, pandemic worries in recent times did create unfortunate barriers. They include export bottlenecks, logistical issues, social and economic shutdown. The exporters face labour, raw material, and transportation shortages. They also face bottlenecks in phytosanitary certification, shipping documents’ clearance, and lack of courier services. Other problems include import and export goods’ clearance, and inaccessible ports or shipping yards. India’s EU exports have decreased by 40% in 2018-19 due to maximum residue level(MSL) in pesticides issue. 

What certification will be required to export Indian Rice

The Export Inspection Council or EIC is the official Indian certification body. It ensures high quality and safety of shipped food products. Those who export basmati and other rice varieties to EU need a certificate from them. The board inspects the sample for acceptable levels of a fungicide called Tricyclazole. The early limit was 0.03 mg per kg, while the new level is 0.01 mg per kg only. The board works under the Export Quality Control and Inspection Act of 1963. Exporters also seek IEC code from DGFT, fix an HS code; and apply for APEDA, Non-GMO, and PQ Clearance.

Any specific packages are required for rice export?

Agricultural & Processed Food Products Export Development Authority (APEDA) specifies the packaging rules. The shipments have to follow the labelling format and packed for containment, protection, preservation, and safety. The packages have to be attractive, and convenient to distribute, handle, display, open, use, reuse, and sale. They also require security features such as RFID tags, anti-theft devices, electronic article surveillance tags, and dye-packs.

Trade agreement between India and other countries for rice export

India favours rice exports to the Middle East, Singapore, Malaysia, South Africa and Egypt. The popular European importers are the UK, Belgium, France, Italy, Germany, and Georgia. The list also includes the USA, Canada, and Australia

% tariff for India Export to which countries

As per India’s Agriculture Trade Policy, rice is exported freely. There are no prohibitions or constraints under Foreign Trade Agreements(FTAs). These include agreements with Korea, Japan, ASEAN, SAFTA and UTP. Exports can ship cereals such as broken, brown, milled or semi-milled, and husk rice under free trade policy. However, they have to pay currently applicable duties with bound rates(fixed by WTO rules) and statutory duty at the revenue department’s discretion

What is the benefit the Indian government provides for Indian rice export (For Example: Draw Back / MEIS)

India’s competitors in the global rice market are Thailand and Vietnam. At the policy level, the government encourages low-cost production technology, surveys, and quality assurance. It also considers subsidized seeds, breeding programmes, modernization of rice mills, etc., Other ideas include systematized supply chains, logistics, R&D, Intelligence gathering, and sufficient seaports. To encourage the export of agricultural produce, MEIS was initiated. The Merchandise Export from India Scheme offers rewards, inducements, and incentives. But the drawbacks are merchandise bias, bureaucratic tedium, and corruption.  Customs and central duties on traded goods, that are imported and exported, can be reclaimed. But the costs are heavy due to procedural delays.

Promotional council for Indian Export Rice

The APEDA works under Indian government after replacing PFEPC(Process food export promotional council). It supports various animal and organic products, including cereals like rice. The All India Rice Exporters’ Association (AIREA) is also a force to reckon with. It generates trade leads, boosts exports, promotes and develops basmati rice. AIREA also organizes seminars, supports exporters, and raises public awareness. It participates in global trade fairs, coordinates trade delegations, and interacts with Commerce and other ministries.

Agricultural and Processed Food Products Export Development Authority (APEDA)

The APEDA is the apex body with branches in New Delhi, New Bombay, Hyderabad, Bangalore, Kolkatta, and Guwahati. It offers membership apps, farmers portal and a single window for trade facilitation. The authority also regularly publishes rice exporters’ lists, survey reports, and trade advisories.  Exporters also learn about standard operating procedures, storage and handling requirements. APEDA archives data and it also operates a specialized basmati.net portal for users.

Activities of promotion council for Indian export rice

AIREA is a registered body that focuses on basmati and non-basmati rice. The association liaisons with State and Union governments to frame and resolve trade and policy issues. They work closely with APEDA, NPPO, Commerce Ministry, State and Union Agriculture Ministries. Their objective is to bring rice exporters onto a single platform. To achieve this mission, they offer facilitation, appraisal, assistive, and organizational services. But, APEDA also handles fruits, veggies, flowers, seeds, etc.

What is the main season to grow rice

Rice is mainly grown in the Winter Kharif season of June-July(sowing). The produce is harvested in Northern, NW states by November-December. Summer or Autumn rice is also grown in various parts of India. Assam, Bengal, AP, Kerala, Tamil Nadu, and Bihar sow in November-February. They harvest different rabi varieties like Boro, Dalua, Dalwa, Punja, and Navarai in March-June.

New rice vs old rice and their prices

New rice is not normally cooked and eaten right after the harvest. Rice has to age and becomes a little old. This old rice is drier and has a dehydrated look. Their low moisture content demands more water while cooking. But the cooked grains look perfect and fluffy, unlike new rice that has stickiness after cooking. Old rice is expensive due to enhanced taste, aroma, and cooking quality. Basmati sells 3 to 4 times higher when old than at new rice prices. Basmati varieties cost ranges between Rs 3600 to Rs 5400 per quintal. While non-basmati species cost Rs 2200 to Rs 2600. Some varieties like Steam, Sella, Samba, and Gobindo Bhog are priced higher between Rs 3000 to Rs 6000.

News / Magazines for rice export

APEDA has product catalogues for basmati and non-basmati rice. The non-basmati catalogues include Parboiled, brown, husk, broken, milled and semi-milled rice. Their website also offers regular field crop survey reports. You can get the latest rice export news from APEDA and AIREA. Rice India is a periodical magazine published by AIREA. They offer news, views, updates, facts, and figures. The journal also profiles companies, states, countries, and trade leaders. The outlook, The Hindu, European Supermarket Magazine, and Hunt’s Merchants’ Magazine are other good sources of news.

Companies that research the export of rice

APEDA’s Basmati Export Development Foundation(BEDF) has 10 acres of land. They have a state of the art lab, demo and training farms, and authorized centres. They improve farmer awareness, build seed capacity, and do basmati quality assurance. They work with CDFD of Hyderabad to DNA fingerprint Basmati identification. They also strive to register and protect intellectual property rights. The Indian Institute of Rich Research in Hyderabad develops crop cultivation technologies and conducts multi-location rice genetic lines testing. They work under ICAR which is the apex body in Delhi for coordination, guidance, education, and management of research.

Conclusion

India is one the largest rice exporters. The key export destination of Indian rice is Saudi Arabia, UAE, Kuwait and other parts of GCC. The Indian Basmati rice is the best in the world and Arabs like Indian Basmati rice the most favorite. Saudi is one the top importing countries to buy Basmati rice from India.

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The voice of HSN to you being an exporter is very familiar and common. This is super important for you to understand about HS in detail for your export and import assignments since this is an integral part of export and import and it plays a vital role in the process of exporting or importing.

If you are just learning how to do export, you might be very much concerned about it but you do not need to worry, I will explain it in this blog in such a simple way that you can become a master in it.

You need to read this blog till the end to become a master about HS code in just 5 minute read.

Let us get started…………

HSN means Harmonized System of Nomenclature that helps you to find out the class of goods and its tariff in case of export and import widely.

International harmonized code is used globally and acceptable worldwide. HS is a code generated by world customs organizations for each and every export product which is accepted and followed by the world.

This code has been developed by the World Customs Organization and it came into practice from 1st Jan 1988.

History

HS is mainly to collect tariff against the goods imported. The tariff before the HS code was simply collected on the list of products imported but it was effective till the list of goods was less. Once the list of import products became bigger, it became difficult to manage the collection of tariffs. The need of having a uniform name for the import goods for the global market arose.

The then system of collecting tariff for imported goods was only for the local government to collect their import duties and revenues but there was no humanized name internationally.

In the absence of HS code, there was a huge chance of conflict to classify the goods among various countries. It was a huge problem for the importer or exporter to assess the cost and viability of imports.

Then the need for naming goods in uniformity to be known and accepted by the world became essential.

In the 9th event of the International Statistical congresses held between 1853 and 1857, the idea for international tariff was explained and urged on its necessity to create a uniform code of each product to know their tariff easily.

During the meeting of International Commercial Congresses held in 1889 at Paris, the request was raised “Would it not be in the interest of all nations to adopt in their Customs tariffs and in their official statistics comparable classifications and uniform vocabularies?”

As a result, the draft for harmonized Systems became ready in 1931 and with multiple revisions, the final HS code came into existence on 1st jan 1988 with immediate effect.

As soon as it was announced, it was adopted and accepted by the various nations worldwide quickly and now it is benefiting more than 200 countries.

You can also read the whole story at this

The Level of HS

HS code has various levels and is divided into different segments.

• Section – 21 sections are available and this is divided into Chapters.
• Chapter – 98 chapters are represented in 2 digits from 01 to 98. These 2 digit of HS is known as Chapter and this is further divided into headings
• Headings- it is shown in 4 digits having 1222 headings. In this, the last two digits are indicators of headings that are further divided into sub headings.
• Sub Heading – 5224 subheadings have 6 digits where first 2 digit for Chapter, next two digit for headings and the last two digits for the subheadings

The HSN consists of 2 digit, 4 digit, 6 digit and 8 digits. Let us understand what they are meant for

First initial 2 digit indicates the chapter number of the products, next two digit in 4 digit HSN indicates the heading number and the next two digit in 6 number HSN indicates the product code and the last two digit in 8 number HSN tells us the further classification of the product code.

For example;

Let us take the HSN Code as 901839

Here two initial digits (90) indicate the chapter which includes broader categories related to instruments as Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof.

The four digit HSN code (9018) where the digit 18 indicates the heading for the medical instruments like Instruments and appliances used in medical, surgical, dental or veterinary sciences, incl. cinematography apparatus, other electro-medical apparatus and sight-testing instruments, n.e.s.

The six digit HSN code (901839). The digit 39 indicates the subheading by representing the exact products as “Needles, catheters, cannula and the like, used in medical, surgical, dental or veterinary sciences (excluding syringes, tubular metal needles and needles for sutures)

Finally the HS code 901839, first two digits represent the chapter, the next two digits represent the heading and the last two digits represent the sub heading for the exact products.

In India, the HS code stretches up to 8 digits and some time to 10 digits as per the description and the requirement.

For example, the HS code for I.V. Cannula which is a medical surgical item in India is 90183990 where up to the 6 digits are the same and further 2 more digits 90 is added to describe further extension and subheading of the medical equipment which is I.V .Cannula.

In brief, the HSN code includes 21 sections, 98 chapters, 1244 headings and 5224 subheadings

Difference in HS code country wise

Up to 6 digit HS codes are used in all the countries unanimously and only the differences could be in the addition above 6 digit HS codes like the last 2 digit in case of the 8 digit and 4 digits in case of the 10 digits HS codes.

Depending on countries, they add extra 2 digit or 4 digit as per their requirement to describe their products in more detailed manner.

HS codes in popular countries

HS code in India

If you would be curious to know if the HS code is the same as in the international market. The answer is yes. India is in the agreement to follow the 6 digit HS code and on the top, it adds 2 digit more to fulfill its requirement.

The HS with 6 digits for a particular product will be the same and will match with HS used in other countries but it may differ in 8 level digit or 10 level digit in the last 2 digit or 4 digits.

India uses 8 digit HS code. The 2 digit on the top of 6 digit HS code are country based codes. India is one them that follow the same till 6 digit and uses extension of 2 digit as per its requirement.

HS code in US

10 DIGIT

HS code in China

It uses 10 digit HS code.

HS code in UK

10 digit

HS code is known differently in some countries.

In Brazil, HS code is known as NCM

More than 200 countries are in the agreement to use HS codes that cover 98% of goods in the world by representing 5000 products

When HSN Code started

HSN code was developed by WCO (World Custom Organization) in 1988 with immediate effect of the application for the world.

It covers 5000 products assigning them a HS code that are exported or imported.

How many countries use HSN CODE?

The WCO has 183 Members (as of December 2018)

To know more details about countries using HS code, check the list

Why is it important ?

HS code is a key part of the process in the export and import HS code is mainly used to monitor, control export and import and to collect tariff against each product based on the country.

This is universally recognized. It eases the job for importers, exporters, shipping line freight forwarders, insurers and custom departments to identify the products through the HS code hassle free. It helps in tariff collection as well as documentation.

It also helps importers to analyze the landing prices while buying a particular product from a particular. HS code can give you the details of what tariff or duty you need pay on your product imported from the exporter country.

The same HS code for one particular product may have different tariffs and it happens just because the agreement and relation between the countries; importer countries and exporter countries.

The tariff of the same HS code might be zero or 5% for most favored nations and the same HS code might have 25% tariff for Non-most favored Nations.

For example;

The HS code 842959 for backhoe loaders, Excavator and Wheel Loaders exported from India has different tariffs to different countries as can be seen in the below boxes.

What is the use of HSN Code?

There are below uses of the HS code:

1- To know Tariff. By HS code, you can identify the tariff of each country against a particular goods and it will help you a lot to make your decision in your exports or imports.

If the tariff against your goods in the buyer’s country is more, you will find the difficulty to export since the buyer calculates his landed prices after duty paid. If the buyer has the option to buy at the same price that you are quoting from another supplier of another country and the tariff against the goods is a bit lower, then the buyer may buy from another supplier and from you. This is the direct effect and you need to analyze as an exporter.

2- To collect import duties. For the custom department, it is an easy tool to know the tariff of the particular product and the collection of duties for it would be very easy.

3- Rules of Origin. Based on the HS code,

4- Monitoring of controlled goods

5- To collect internal taxes

6- WTO Agreement on trade in civil aircraft

7- WTO instruments on pharmaceutical products

8- Trade negotiations between countries for free trade agreements etc

9- To collect international trade statistics

10- To ease the custom process

11- Quota Control

12- Statistical reporting

What is the relation of HSN code to other things?

HS code is being used in GST. The implementation of GST made it mandatory to mention HS code for the product sold.

Conclusion

HS code is a vital part for export and import. It is globally harmonized and accepted by 6 digit HS code.

Various countries like India, USA, UK, and Saudi Arabia add further 2 digit, 4 digit and 6 digit as per their requirement.

This code is internally humanized, logical and legal to identify goods and services mutually across the world. It is also periodically updated and communicated with all member countries.

There are 21 sections, 98 chapters and 5224 subheadings. More than 200 countries are members of HSN developed world Customs organizations (WCO).

The main purpose of the HS is to collect tariff on the goods imported from overseas.

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If you need to know more about this, let me know through the comment, you will receive the answer.

India is one of the largest exporter countries for many products in the world. This is an interesting fact to know, India`s exports to the world in 2018 were $323 billion while the exports of the world to the world were $19284 billion, measured as 1.67% of total world exports. The 1.67% shares in the total world exports are considered a sizable and decent export.

Let us check some facts for the last 5 years for world export as shown in the chart;

World export with some fluctuations seems to be stable and consistent in performance, it was down in 2015 and 2016 but it had gained in 2017 as well as in 2018 and it continues.

India`s export was down in 2015 and 2016 as we saw in the world export but it had gained in 2017 and 2018.

India`s exports compared to the world exports are declined since the world export has performed bit good in 2018 but the performance of India`s export was not at the same pace and it was down by 0.1% in 2018 as you can find the difference in the graph; 1.69% in 2017 and 1.68% in 2018.

Now let us discuss 10 major countries that are importing the most from India.

Exports from India to USA

India is a good partner of the United States of America in exports. Many products from India are being exported to the USA. A question arises in our mind that why America imports various products from India although it can import from another country. The answer to this question is exported from India to the USA are made due to the main two reason;

• Quality products
• Reasonable prices

India has earned its name and won the trust of America due to the good quality of products. The right prices and good rates attract the American importers to meet their import needs as much they can do from India.

The top products exported from India to the USA you must know are;

• Diamonds and jewelry
• Pharmaceutical products
• Machinery
• Mineral fuels
• Vehicles
• apparel and clothing accessories
• Fish and crustaceans
• Organic chemicals
• Electrical machinery and equipment
• iron or steel
• Carpets
• Plastics and articles

Exports from India to China

India and China have bilateral relations and both the country exports its valuable products to each other to meet the requirements needed by the people in the country. Imports of various products from China to India are in good demand but India also exports various products to China effectively and efficiently.

Indian top Products exported to China includes the below;

• Mineral fuels and its related products
• Organic chemicals
• Cotton
• Ores, slag and ash
• Plastics and its related products
• Salt & sulfur
• Copper
• Fish
• Natural pearls & precious stones
• Iron and steel

Exports from India to Canada

India is considered to be a good partner of Canada in trade and exports various products.

• iron & steel
• Pharmaceutical products
• Vehicles
• Machinery
• Organic chemicals
• apparel and clothing
• Natural pearls & precious stones
• Fish
• Plastics based products
• Electrical machinery and equipment
• Cereals
• Rubber
• Coffee & tea
• Other Agro Products

If you are planning to start exporting to Canada and if you are dealing with any of the above-mentioned products, you will have a good chance to start with your desired products.

Exports from India to Pakistan

The political relation between India and Pakistan is not good at the moment but the trade between both countries has much potential which is not being explored at its full capacity. Instead, interesting facts and worth mentioning is that India exports many products to Pakistan as enumerated below;

• Cotton
• Organic chemicals
• Plastics products
• Machinery
• Pharmaceutical products
• Iron and steel
• Coffee & Tea
• Rubber-based products
• Essential oils, perfumery & cosmetics
• Cereals

At the moment, India’s export to Pakistan is drastically down sine exporters do not feel comfortable to trade with Pakistan due to the political relations between both the countries.

If the relation of both countries comes on the track, both the countries have massive potentials to trade with others and get benefited.

Exports from India to Australia

Australia is one of the leading importers from India and it imports all the famous products from India. Australian importers always focus on quality products that they get from India.

Some of the main products exported by India to Australia is the following;

• Mineral fuels, mineral oils & products
• Railway or tramway locomotives, rolling stock and parts thereof; railway or tramway track fixtures
• Cultured pearls, precious stones, precious metals
• Pharmaceutical products
• Electrical machinery and equipment
• Machinery
• Iron or steel
• Textile articles
• Vehicles
• Apparel and clothing
• Leather items; travel goods, handbags, and similar items
• Carpets and other textile floor coverings
• Rubber
• Plastics based products
• Coffee, tea,
• Cereals
• Organic chemical
• Medical Equipment
• Cosmetics
• Footwear

Exports from India to Dubai

In Gulf Cooperation Council Countries (GCC), UAE is a prominent member and plays a vital role in these countries and known as the trading and economic hub.

United Arab Emirates consists of 6 states; Dubai, Abu Dhabi, Sharjah, Ajman, Umm Al-Quwain, Fujairah and Ras Al Khaimah.

Abu Dhabi is the capital of UAE and Dubai is the hub of business and trading.

Dubai leads Gulf countries in the trade is also known as a global hub for trade.

The exports from India to Dubai are significant and Dubai is one of the top export destinations for India.

Many traders sitting in Dubai import products from India and re-export to other countries.

The major products imported by Dubai from India are;

• Natural pearls, precious or semi-precious stones & metals
• Mineral fuels, mineral oils, and products, Bitumen
• Electrical machinery and equipment
• Ships, boats and floating structures
• Apparel and clothing accessories, knitted and not knitted
• Iron and steel
• Machinery, mechanical appliances
• Cereals
• Organic chemicals
• Vehicles
• Plastics articles
• Edible fruit and nuts
• Paper and paperboard
• Fish
• Meat and edible meat offal
• Pharmaceutical products
• Coffee, tea, and spices
• Essential oils, perfumery and cosmetic

The interesting facts and worth mentioning here are UAE meets its 9% import needs from India only.

Exports from India to Malaysia

Malaysia exports palm oil to India in good quantity but also import many products from India and the major imported products are;

• Mineral fuels
• Aluminum and articles
• Organic chemicals
• Meat and edible meat offal
• Machinery
• Iron and steel
• Electrical machinery
• Cotton
• Coffee, tea, and spices
• Natural or cultured pearls, precious or semi-precious stones, precious metals
• Apparel and clothing accessories, knitted as well not knitted
• Pharmaceutical products
• Miscellaneous chemical products
• Plastics and articles
• Zinc
• Fish
• Vehicles
• Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical equipment

Exports from India to African Countries

Opportunities for exports to African countries are huge you need to decide what products you can export.

Africa is a big market that imports various products and it depends on largely products imported from different countries.

India is one that satisfies the needs of Africa`s requirements largely.

India is trying to strengthen its business relationship with African countries so that it can increase its exports in many folds.

At the moment, India exports various products to African Countries.

Few of them are;

• Mineral fuels, mineral oils, and products of their distillation; bituminous substances; mineral. . .
• Machinery, mechanical appliances, nuclear reactors, boilers.
• Pharmaceutical products
• Vehicles other than railway or tramway rolling stock, and parts and accessories thereof
• Plastics and its articles
• Paper and paperboard
• Electrical machinery and equipment and parts.
• Organic chemicals
• Iron and steel
• iron or steel
• Miscellaneous chemical products
• Rubber and its articles.
• Cereals
• Sugars and sugar confectionery
• Aluminum and its articles
• Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical . . .
• Footwear, gaiters and the like; parts of such articles
• Zinc and articles thereof
• Other made-up textile articles.

If you are one who is planning to export to African countries, you need to choose the products from the above or any other products which you may find suitable for the Africa Market and then you are set to go and explore this wide market. Africa has great potentials and we need to explore as much as we can do.

The list of goods imported by Africa from India mentioned here is not the exhaustive list. Africa imports huge items and I will write a separate blog on it only for the products exported to Africa in detail. You need to keep coming on this blog to get updates on new topics.

Let me check how big Africa is. As World meters provide the below data, Africa consists of 54 countries.

The details of African countries and its population I have mentioned here just for the reference to know how big the export market is for you.

The opportunity for you to export is everywhere in Africa and you need to prepare yourselves firmly and catch them with the right mind-set and right products.

Exports from India to Thailand

Thailand is also in the race to import products from India and the below major items are imported by the country.

• Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad
• Machinery, mechanical appliances, nuclear reactors
• Organic chemicals
• Fish and crustaceans
• Iron and steel
• Vehicles
• Electrical machinery and equipment and parts
• Cotton
• Pharmaceutical products
• Coffee, tea, and spices
• Mineral fuels, mineral oils, and products of their distillation
• Aluminum
• Miscellaneous chemical products
• Iron or steel

Exports from India to Nepal

Nepal is a landlocked country and depends on India to meet most of its requirements. Almost each and everything required by Nepal is exported by India. Let us see the major export products made by India to Nepal.

Top products imported by Nepal from India are following;

• Mineral fuels, oils, distillation products, etc.
• Articles of apparel, accessories, not knit or crochet
• Iron and steel
• Electrical, electronic equipment
• Machinery, nuclear reactors, boilers, etc.
• Vehicles other than railway, tramway
• Cereals
• Plastics and articles thereof
• Pharmaceutical products
• Footwear, gaiters and the like, parts thereof
• Optical, photo, technical, medical, etc apparatus
• Other made textile articles, sets, worn clothing, etc
• Edible fruit, nuts, peel of citrus fruit, melons
• Paper and paperboard, articles of pulp, paper, and board
• Manmade staple fibers
• Essential oils, perfumes, cosmetics, toiletries
• Articles of iron or steel
• Residues, wastes of the food industry, animal fodder
• Salt, sulfur, earth, stone, plaster, lime and cement
• Edible vegetables and certain roots and tubers
• Articles of leather, animal gut, harness, travel goods
• Oilseed, oleagic fruits, grain, seed, fruit, etc.
• Coffee, tea, mate, and spices
• Rubber and articles

Final word

India has resources a lot to fulfill the need of the domestic market as well as the need of the international market. India has the potential to produce quality products at the best prices. Many countries look forward to India to import many products to cater to their importing needs. India is one of the top exporters in the world and the government is always trying to help the exporter to export more by incentivizing monetary and giving other benefits to them.

The major partners of India in imports include the USA, China, Canada, Australia, Dubai, Africa, Malaysia, Thailand, and Nepal as well as many other partners.

You are the lucky one who is born in India since you being Indian and staying in India has a lot of opportunities and various products to start with. You need to just choose one product and one export destination and go ahead.

If you want me to write on any topic, make your comment below and if you find this blog informative and useful, please share this on your social media platform to get your friends benefited.

The market scenario in our country has been witnessing major shifts in the recent economic scenario. There has been an exponential growth in the import and export industries.

Globalization has opened up new avenues for export and import of goods to and from India. India now deals in almost everything worldwide.

With such a flourishing export and import scenario, a number of entrepreneurs are shifting over to harness the benefits of this arena. We see a large number of start-ups that are trying their luck in the export and import business.

But, is the road that easy? Well, if you are planning to enter the area of export business from India, there are a few things you need to keep in mind. Because, if you do not weigh in the proper pros and cons in the business, you might end up in a fix!

In this blog, we will tell you all the basic information that you need to get started with your own export business in India. We will go step by step, so brace yourselves!

How to get started?

So, where do you start from?

Having an office? License? Investment plan? NO.

Let us discuss explore what you need to have step by step.

1. Business Idea

Every business starts with an idea first. There are a variety of options when it comes to export business. You first need to decide what you would like to deal with. You may refer to your family, friends or other colleagues for more ideas on the same.

We will also discuss ideas for what to start within next blog.

1. Business set up

Once you have decided WHAT you want to venture into, we would move on to the next step of HOW you do that. The first thing you would want is a set up for your business. And, how do you go about it?

One thing recommended is that in the initial stage, you opt for a sole proprietorship. You should go to the GSTIN registration.

Is the GST Registration mandatory to export products from India? The answer is yes and will explain about it in the next blog, keep following EximInsight.

If you would like to know more about the impacts of GST on Export  Please read it.

Do not forget to get a catchy name and a logo for your business name. Try to hire a freelance professional designer to get you a logo as it would represent your thoughts and your business.

1. Get a business PAN Card

Once you are through with your business name and GST registration, you need to get your business PAN card issued by the IT (Income Tax) Department.

Please note that your personal PAN card will not suffice for your business purposes.

1. A current account with a commercial bank

After you get your PAN card issued, you must open a current account with any leading commercial bank in the name of your business. It would make it easier for you to keep a track of your transactions.

1. The Import Export Code (IEC)

This is the most vital requirement for you if you are planning to opt for getting your import export business started in India. This code is very important to export goods and services internationally.

However, you need to keep in mind that you cannot use this code to deal in prohibited or restricted goods and services.

There are mainly three broader categories for products to be exported;

• Free
• Restricted
• Prohibited

What are the free products?

Any product lies under the free category, it means the product is freely allowed to export from India.

What are the restricted products?

Products are allowed to be exported but with limited quantity.

Once the export of such products touches its limitation of supply restricted by the government, the same cannot be further exported for the year.

What are the prohibited products?

There is much product that cannot be exported from India to overseas. Prohibition of such products` export has been imposed but the government of India.

How can you know which product is in which category, we will explain in our next blog, please keep visiting EximInsight.

So, where do you get the IEC from?

You can apply for the Import Export Code from the DGFT website online. Below are the documents that you would require to get the IEC.

1. Photograph of the business applicant
2. Personal PAN card and also Company PAN card
3. A canceled cheque from your business current account

You must also keep in mind that you can get only one IEC per PAN card. So, you must be very careful about these small details.

1. Registration cum Membership Certificate

The next important step in the process of starting your own export business is obtaining the Registration cum Membership Certificate (RCMC).

This certificate is obtained from the various Export Promotion Councils and it gives you certain benefits to avail from the Customs and Central Excise authorities for the concerned goods and services exported or imported.

In India, there are about 26 such export promotion councils. You need to select the correct one according to the nature of your business requirement.

For further information please read “Registration-cum-Membership-Certificate (RCMC Certificate”

Once you are done with these steps, you can go ahead and get started with your import-export business. However, this is not the end but this the start. There are many avenues that you will have to explore so that you can get your business flourishing well.

Where do you attract more business opportunities from?

1- Online marketplaces are the most easily accessible and give you access to a wide range of products worldwide

You can have a look at below online marketplaces that will give you an insight which products you can go for.

• Alibaba
• IndiaMART
• eWorldtrade
• Made-inChina
• GlobalSources
• DHgate
• TradeIndia
• iOffer
• ECplaza
• ECVV
• Fibre2Fashion
• ExportersIndia

In a new blog, we will also provide you the comprehensive insights on these marketplaces and how you can get benefited from them.

These websites give a tremendous opportunity to the exporters to list their business as vendors and connect with customers worldwide.

2- Making the most of international markets is something you must concentrate on. You can go for a trade in a good that is a deficit in a particular country. That will give you an edge over the other competitors.

3- Selecting the right product is also essential. You need to conduct a proper market study of the various goods and services that are in demand and look at their market behavior.

Some of the best export businesses include leather products, apparels, machinery, and medical appliances.

So, whatever your business goal be, a proper strategy and plan is the first thing you need to be prepared with.

Yes, it is true that opportunities are infinite in today’s market. However, execution and materialization of those opportunities are what will make you stand out from the rest in the market.

We hope the information given above will help you to feel encouraged about the booming import export business opportunities in our country. Check out our other blogs for more information on export business in India.

Please let me know if you are going to start thinking about starting your own export or import business today?

Solar air conditioning system uses solar power that could be done by passive solar, solar thermal energy conversion and photovoltaic conversion.

With huge potential and opportunity, the solar-powered air conditioner is the future and it is still unexplored.

Many things are gifted to the world by nature and one of them is Sunlight.

Sunlight is a key source of energy for earth’s climate. Everything living on the earth needs sunlight to get energy; be it human, animal or plants or other creatures.

Many forms of energy we consume in our daily lives and solar energy have become a vital part of an Energy system which seems to be going to play an important role to provide us energy as an alternative to electricity in the future.

Solar energy is a bit wider field meaning any technology that converts sun’s energy into a form of energy whereas solar power is a technology that converts the sun’s energy into electricity either directly or indirectly.

A technology that converts sunlight into electricity directly is called photovoltaic.

A technology that converts sunlight into electricity indirectly is called Solar thermal.

Now let us discuss our main point of the Solar powered air conditioner.

A solar air conditioner is an air conditioning system that converts sunlight into electricity and removes heat from our rooms and makes the temperature cool inside as desired.

Solar air conditioning system plays a fantastic role to decrease the cost of electricity to zero.

Solar AC will get you rid of paying a huge electric bill every month although the one time investments likely to be made for Solar AC are bit high the consumption of electricity from the day one will be zero and the investment will get back to you in 3 to 4 years.

Encouraging for using solar panel air conditioner to meet our Air Conditioning requirement is a step ahead to get rid of the pollution generated by a conventional air conditioning system that we face significantly in our daily lives.

There are two sources of getting energy;

1- Conventional

2- Non-Conventional

Sources of conventional energy are wood, a flow of water and fossil fuels ( coal, petroleum, natural gas).

This kind of source is limited and will be depleted at a point in time.

Sources of non-conventional energy are solar energy, wind energy, biomass energy, ocean energy, geothermal energy etc.

These are renewable and will be the best source as an alternative to the conventional energy.

In this blog, I will focus on the solar air conditioner for home which uses solar energy that stands renewable and pollution free.

Solar air conditioner residential is a product of alternatives to conventional AC and will be the best for future to provide us a cooling system with no pollution while conventional Air Conditioners are not environmentally friendly and releases pollution we inhale increasing risks to our lives.

In the light of our export requirement of Solar Powered Air Conditioners, I attended a Renewable Energy India Expo lasted for three days from 20th September to 22nd September 2017 at the India Expo Centre and Mart – IECM in Greater Noida that was organized by UBM.

The expo shows products ranging from Solar, Wind, Bio-mass & fuel, Small Hydro, Geothermal and Energy Efficiency Sectors in the Power & Energy, Power & Renewable Energy and Solar Energy industries.

It was a very good experience for me to visit the expo and enjoyed a lot visiting various stalls exhibiting products pertaining to solar ACs as to meet our requirements.

What is Solar Air Conditioner?

This is similar to conventional AC in terms of cooling but the technology adopted is completely different.

An Air Conditioning system that takes energy from the sun to operate AC is called Solar AC and also known as Green Energy Air Conditioner.

Type of Solar AC

There is mainly two type of Solar Air conditioner.

1- Photovoltaic Solar powered AC

Solar Air conditioners that work on photovoltaic technology can be 100% Solar powered or conventional air conditioner as well.

The air conditioner that works solely from solar energy known as 100% solar powered air conditioner.

In this system, Air conditioner operates on DC directly from a Solar panel by the conversion of sunlight through charge controller into electricity without the solar panel. Solar AC in this case, is connected with the Solar Panel and Charge controller only.

If the requirement for air conditioning is for only daytime, battery banks are also not required.

If needed for a night as well, the battery banks are required to provide backups at the night.

By doing this, an efficiency of using solar power is great and wastage of power not converting DC to AC becomes minimal.

In this scenario, direct current ( DC ) is not required to be converted to alternating current ( AC). Thus the efficiency of powering gets improved and wastage of power for conversion is completely eliminated.

For the above, Air Conditioners are to be 100% solar powered AC that can also be connected with electricity main power in case of emergency using an additional device Power Adaptor for Main Inputs.

Conventional Air Conditioner that also operates from solar energy.

The sunlight is converted through a solar inverter from direct current -DC to alternating current-AC and used in operating the conventional air conditioner.

This is also called Solar AC but it is not 100% solar powered AC.

In this, a Solar panel is connected to a solar inverter that converts sunlight from direct current ( DC) to alternating current (AC) and solar inverter is connected to an air conditioner that supplies alternating current for daytime.

If required for a night, the battery banks are also connected with an inverter to get them charged and provide backups at night.

The conversion from DC to AC reduces the efficiency of the power since it gets wasted in the conversion process while using direct current without conversion, efficiency is great.

To have a backup for 8 hours at night, we need to have 4 batteries with 180-200 AH each unit.

In this case, Conventional AC, as well as solar powered AC, can work.

For individual houses or less consumption, 48v solar air conditioner under photovoltaic technology is recommended.

If the requirement for the cooling system is huge, thermal and hybrid AC will come into the picture and they are more suitable for Industrial and commercial usages.

2- Solar Thermal AC

We need to understand the basic concept here for Photovoltaic (PV) and Solar Thermal.

Photovoltaic acquires sun rays and convert it into electricity while Solar thermal collects sunlight and transforms it into heat that is stored and that heat is transformed into electricity later on.

A solar thermal air conditioner is also known as a hybrid solar air conditioner.

One more interesting technology related to solar technology is passive solar.

Passive solar collects solar energy, stores and distributes heat in the winter and protects room and building from the heat in summer. The building, windows, and walls are designed in such a way that these start working as passive solar depending on the weather.

Designing buildings for passive solar are very expensive, such technology is rarely found in India and other countries as well.

working principles

100% Solar powered air conditioner gets power directly from the solar panel and works on DC at daytime and no inverter is required to transform from DC to AC.

Solar panels are connected to a solar charge controller that converts sunlight into electricity directly and provides power to AC as well as charges batteries that operate AC at night for 5-8 hours depending on batteries backup capacity.

Solar thermal ACs does not work directly from DC, thus solar inverter is required to convert from DC to AC to run solar AC and the technology used for conversion is completely different from the photovoltaic.

For Solar Thermal AC and Hybrid Solar AC, heat generated by sunlight is collected by a solar collector and transformed into electricity and later on it is used to run AC.

This is what the same is called thermal solar air conditioner as well as solar air conditioner hybrid.

In this technology, a conventional air conditioner is used and it consumes converted solar energy as well as electrical power if required.

Let us understand a few more related points here, they are;

Off Grid Power System – The supply of power generated by our solar system is not connected to the electrical grid and the power generated is for consumption of individuals only.

On Grid Power System – Extra power above the consumption of individual is supplied to the electrical grid so that the power can be used by others also.

Components used in Solar AC

Parts used in a Solar AC are following;

Air conditioner

Solar Panel

Solar control charger

Solar Inverter

Batteries Banks

Air conditioner

Air conditioners can be 100% solar powered, hybrid, thermal and conventional AC.

Air conditioners to be used depend on technology and requirement of usage.

If the requirement is for individuals, 100% solar power air conditioner for home is suggested. If the requirement is huge for commercial, the thermal and Hybrid solar AC is to be chosen.

Solar Panel

For 100% solar powered AC, Photovoltaic Solar is used and for thermal and Hybrid Solar AC, a Solar collector is used.

Photovoltaic is a new invention and good technology to power solar AC. It converts sunlight into electricity directly.

Thermal Solar Technology is a bit old technology collecting heat from the sunlight, storing heat and then converting it into electricity.

how many solar panels are required to run an air conditioner

A number of solar panels depend on the capacity of air conditioners. The panels required for solar powered room ac units is below for example;

• 3 panels of 250 watts for 0.75 TR
• 4 panels of 250 watts for 1 TR
• 5 panels of 250 watts for 1.25 TR
• 6 panels of 250 watts for 1.5 TR

Solar charge controller

This is nothing but a device that converts sunlight into electricity as well as charges batteries. This is connected with the solar panel and battery banks.

Solar charge controller also controls power fluctuations and supplies as per the requirement.

Solar Inverter

A solar inverter is used to convert direct current – DC to alternating current -AC to power air conditioner if the AC is not 100% solar powered AC. This is also used for charging batteries.

The solar inverter also works as a controller to balance power fluctuations.

Solar Battery Banks

These are used to store energy to provide backups for the air conditioner at night.

These batteries are charged from sunlight at daytime and provide backups at night.

There are two type of batteries used in solar air conditioning system;

Lead Acid Batteries also are known as deep cycle batteries- These batteries are starter batteries and less expensive. They charge and discharge from 45% to 75% of its capacity depending on quality.

Lithium-ion Batteries- This seems to be best in terms of charging and discharging that can reach up to 100% of its capacity. This is also very lightweight.

Lithium-ion is used in mobile and best for the solar air conditioner as well but it is very expensive compared to deep cycle battery.

Comparison between Solar AC and Conventional AC

Solar Air Conditioner works completely on solar power with zero electricity consumption and provides your cooling system with no pollution.

You can enjoy cooling as well as the clean energy that will make you healthy.

In Solar AC, ultimately, you would be enjoying the clean energy and you would be helping your neighbors and the world to get pollution free air conditioning.

A conventional Air conditioner will get you the huge burden of paying electricity bill repeatedly over the years till you keep using this.

Moreover, this produces pollution that is hazardous to the health and will keep your health deteriorating over the years.

In this conventional system, you would be enjoying cooling system but you are increasing risks for your health as well as no contribution to the world to get pollution free.

Cost of Solar AC and Conventional AC – an overview of cost-effectiveness

As regards to the price, conventional air conditioning system is surely damn cheap and affordable in terms of one-time investment but for a longer period of usage, it becomes costlier than Solar AC.

For example, you can buy a conventional AC of 1 ton in a range of Rs 15000 – Rs 20000 in India and will connect with the electric power and will start enjoying cooling.

Contrary to this, solar ac unit cost is a bit expensive and will demand you to make a sizable amount of investments. Let`s say around Rs 1,14,000/- at a time but it will pay you off during 3-4 years and you can start enjoying cooling system completely free of cost later on.

Let us say if 1 TR AC consumes 2 unit of electricity for Rs 7.5 per unit, the calculation can be as below;

Rs. 15 per hour ( Rs.7.5*2)

Rs 225/- per day if used for 15 hours on an average a day ( Rs.15*15).

Rs. 6750/- per month ( 225*30)

Rs. 54,000/- for 8 months in a year  ( Rs 6,750*8) if 4 months excluded for winter.

Rs. 1,62,000/- in 3 years excluding 12 months for winter of 3 years ( Rs. 54,000*3)

In a span of 3 years, the one time investments seem to be coming back and no further expenses required although expenses for payment of electric bills even after 3 years in case of using conventional AC will continue.

If a person uses solar AC for 6 years and another person uses conventional AC for 6 years, Rs. 162,000 can be saved in case, solar AC is used.

solar air conditioner advantages and disadvantages

Advantages

There are various advantages of the usage of  Solar AC. Few of them are mentioned here

• It provides green and clean energy with no pollution
• It is completely independent and no electrical power is required so it can work in a remote area as well where no electric power is available.
• Zero electricity consumption and zero electricity bill

Disadvantages

• Solar AC depends on sunlight, there would an issue in cloudy and rainy days to get solar energy enough to operate AC.
• Solar AC is expensive and it requires a good amount of one time investments and later on, it will become free of cost
• More spaces are required for components to get installed like a solar panel,  control chargers, solar inverters and battery banks.

Difficulties in installation

Installation process as informed by the engineers and technicians is quite easy but you need to have skilled labor to get the job done or you need to learn how to install them.

I will try to make a video later on installation that would educate us how to install and get it done without skilled laborer from our own.

A trend for Solar AC

A trend for 100% solar powered air conditioner is on upwards and demands are on the rise. People are keen on using such solar ACs to save themselves from the brunt of paying the huge electricity bill and to save the environment from pollution.

Being capable of getting operated with naturally accessed energy, Solar AC is the future.

Availability of Solar air conditioner

The solar AC available is 0.75 TR, 1 TR, 1.25 TR, 1.5 TR and 2 TR.

Potential

The energy to run solar air conditioner is least in use and the demand for energy usage is on increase.

The energy to obtain conventionally to meet the increased requirement of energy is to increase more burden on authorities to provide supplies since the conventional sources will be depleting gradually, the demand for solar power and solar ac will be automatically increasing.

The potential of solar AC is huge and it is still unexplored.  The market for solar AC is increasing 17% every year and market size of it is 0.05% (2112 Mw ) of Conventional AC market ( 4.75 million Mw)

This data shows a huge potential in India itself. At the moment, even 1% of conventional ac market is not yet explored.

For more on this, you can read this article Market Potential for Solar A/C in India

This is a right time to work upon on solar AC  to explore the market and make it available in the market at a reasonable price for potential users.

The prices of Solar AC is quite high at the moment as a one-time investment, but it may go down as soon as technology gets simplified.

Which countries are using Solar ACs

Countries with harsh weather are more likely to be using Air Conditioners so Solar AC will find its existence in those countries.

Few countries with harsh climate are showing more interest to use solar air conditioners like China, India, Indonesia, Brazil, Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Oman, Bahrain, Pakistan, and Africa.

Export market

China is one among countries to use solar AC most and also more capable of supplying overseas as well.

At the moment, China is largely enjoying to export Solar ACs to most of the countries demanding Solar ACs in their region.

India seems to be on second as users of Solar AC. India has started exporting quality products for Solar AC.

India is stepping ahead fast in manufacturing solar ACs in-house to cater its huge domestic demand as well as export orders.

As an exporter, we receive a good amount of inquiries for export order from GCC countries and African countries most.

Top Countries importing Solar AC from India

Soar Air Conditioners manufactured in India are widely consumed in the domestic market as well as being exported to the United Arab Emirates, Saudi Arabia, Oman and African Countries.

Solar Powered Air Conditioner Prices in India

The prices mentioned here are for 48 V DC air conditioner and the prices provided below may differ based on quality and manufacturers.

• Price for 0.75 TR solar AC: Rs 70,000/-
• Price for 1TR solar AC: Rs 75,000/-
• Price for 1.25 TR solar AC: Rs 80,000/-

The above prices do not include accessories like solar panels, Battery banks, and solar charge controllers.

The prices provided below include all accessories required for solar powered AC.

• Price for 0.75 TR solar AC with panels of 750 watts, 4 batteries, and charge controller: Rs 1,54,500/-
• Price for 1 TR solar AC with panels of 1000 watt, 4 batteries, and charge controller: Rs 1,95,500/-
• Price for 1.25 TR solar AC with panels of 1250 watt, 4 batteries, and charge controller: Rs 2,30,000/-

All the prices mentioned above are approx

Conclusion

Solar Air Conditioner is slowly getting momentum in India and overseas. In future, it may replace conventional air conditioner to some extent. As regards to health perspective and clean energy, Solar powered air conditioner is the most desired.

In terms of prices, it is very expensive compared to the conventional AC. I hope, the prices will go down as soon as technology gets advanced.

Users can go with solar AC if they are able to invest required amount at one time else keep using Conventional AC.

Top export products indicate to its demands. If the demand is more and supply is not adequate, it creates an opportunity for us to explore and try to export few of those top exports. The chances of success to export top export products are more.

Being an exporter, having an eye on demands and its supplies are most desired to get updated on world`s top export products and market demands.

You can also explore Top 10 Export Products from India and Its top Export destinations here and what risks are associated with export and import business and how to manage them, you are suggested to read this blog.

As mentioning top 10 export products here is worth, similarly listing down top exporters for these products is also very important.

To keep it short, I have mentioned top 10 export products and top 5 exporting countries for each product.

#1- Electrical machinery and equipment, and its parts

The total export value of the product is $ 2325.746 billion and exported by top five exporting countries are China – 23.8% of world exports, Hong Kong – 11.2% of world exports, United States of America – 7.2% of world exports, Germany – 5.8% of world exports and Korea with Share of 5.77% in the world exports.

#2- Machinery, mechanical appliances, nuclear reactors, boilers and parts

The entire exports counted $ 1884.069 billion exported by the top five countries in terms of shares of world exports for the product are China – 18.2% shares, Germany – 11.8% shares, USA – 10.1% shares, Japan – 6.6% shares and Italy – 4.9% shares.

#3- Mineral fuels, mineral oils, and products of their distillation; bituminous substances; mineral

$1521.861 billion is the entire exports of the world topped in export shares by Saudi Arabia – 10.8% Shares, Russian Federation – 8.9%, USA – 6.2%, UAE – 4.6% Shares and Canada – 4.1% shares.

#4- Vehicles other than railway or tramway rolling stock, and parts and accessories thereof

The entire exports show $ 1341.234 billion topped in export shares by 5 countries; Germany – 18.2 % Shares, Japan – 10.6% shares, USA – 9.3% shares, Mexico – 6.6% shares and Canada – 4.8% shares.

#5- Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad

$ 638.001 billion is the total exports topped in shares of export by Switzerland – 15.4% shares, Hong Kong China – 13.2% shares, USA – 9% shares, India – 6.6% Shares and UAE – 5.7%.

#6- Plastics and articles thereof

The entire exports of the product are $ 542.895 billion exported by the world and topped by China – 11.5%, Germany – 11.4%, USA – 10.8%, Korea – 5.1% and Belgium – 5%.

#7- Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical

$534.658 billion is the entire exports made by the world and the exporting countries are USA – 15.3% shares, China – 12.6% shares, Germany – 12.2% shares, Japan – 6.7% shares and Korea – 5.2% shares.

#8- Pharmaceutical products

$504.653 billion shows the total export and top 5 exporters are Germany – 15.3% shares, Switzerland – 13.4% shares, USA – 9.3% shares, Belgium – 8.3% shares and United Kingdom 6.5% shares.

#9-Organic chemicals

$348.931 billion is exported by the world and top 5 countries are China – 12.1% shares, USA – 9.7% shares, Belgium – 8.9% shares, Ireland – 7.9% shares and Germany – 7.3% shares.

#10- Aircraft, spacecraft and its parts

$328.884 billion is the entire export topped by countries as exporters; USA – 40.9% shares, France – 16.2% shares, Germany – 13.5% shares, United Kingdom – 6.4% shares and Canada – 3.1% shares.

The data shown above looks very interesting and will give an insight to the exporter to have overview handy of word exports into the world and top 5 countries of each in terms of world export shares.

Conclusion

The statistics provided above is taken from 2016 data. The data looks very interesting and gives us the insight to have an overview handy knowledge of word exports from world to world and top 5 countries of each product along with world export shares.

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