Whichever you pick, EOU or SEZ, Skydo issues FIRA on every export payment, so your scheme compliance stays clean.

Export incentives look great on paper—duty benefits, smoother procurement, better operating leverage.

But exporters discover the real bottleneck somewhere else: cashflow + compliance around receiving export payments.

So yes—EOU vs SEZ matters. But the right choice is the one that fits your ops and keeps your export cycle clean end-to-end.

Export Oriented Unit (EOU): Meaning (plain English)

An EOU is a manufacturing or service unit that operates under the <a href="https://www.skydo.com/blog/eou-full-form-export-oriented-unit">eou scheme</a> in the Foreign Trade Policy—built to promote exports by giving duty/tax-linked benefits, in exchange for export performance and compliance.

And unlike SEZ units, an EOU is not restricted to a notified zone—your location can be chosen based on your business reality (factory, talent, suppliers, logistics).

Key EOU obligations exporters should actually understand

The core commitment is positive NFE, computed cumulatively over a 5-year block (from commencement).

Translation: the forex you earn through exports must be higher than the forex you spend on imports (over the block).

EOU compliance is mostly about proving you’re doing what you said you would:

It can feel heavy early on, but once your cadence is set, it becomes a repeatable monthly/quarterly routine.

DTA sales in EOU nuance—this is where many drafts get inaccurate.

Practical takeaway: DTA permissions are real—but your exact entitlements are best validated against your LoP conditions + current FTP/HBP and DC guidance.

A Special Economic Zone (SEZ) is a notified zone governed by the SEZ Act, 2005 and SEZ Rules, 2006. 

The defining idea is legal/tax treatment: for authorised operations, an SEZ is deemed to be territory outside the customs territory of India. 

This is why SEZs tend to feel more “contained”: gate controls, specified officer processes, SEZ documentation, zone-level administration—because the framework is designed like an export enclave.

Units in SEZ operate through approvals under the SEZ Rules framework, including Letter of Approval validity and DC administration. 

Difference between SEZ and EOU (EOU vs SEZ) — at a glance

GST &amp; duties for SEZ vs EOU (clean explanation)

SEZ under GST (what “zero-rated” actually means)

Supplies to SEZ units for authorised operations are zero-rated under the IGST Act. 
In practice, this is designed to reduce working-capital lock-up compared to pay-and-refund flows (subject to documentation/endorsements).

Under the EOU framework, domestic procurement can follow regular GST mechanics, and the benefit is not “no GST exists”—it’s that export-linked structures and scheme conditions support the unit’s export economics. 

Mistake exporters make: treating EOU like SEZ for GST. They’re not the same regime.

EOU vs SEZ: which one should exporters choose?

Use this decision logic (simple, real-world):

Don’t pick based on “allowed/not allowed”—pick based on how duties/taxes apply and how frequently you’ll use DTA as a revenue line. SEZ DTA sales are treated like imports and duty incidence can be significant

EOU/SEZ benefits don’t matter if your export payments stay messy

You can optimise duties, get the right approvals, and maintain NFE.

you still end up firefighting cashflow and compliance.

And the most frustrating part is: banks often don’t give receivers real-time clarity on incoming transfers. That creates operational drag exactly when you’re trying to run exports professionally.

Where Skydo fits (for exporters in EOU or SEZ setups)

Skydo doesn’t change your EOU/SEZ status—but it reduces the friction that makes export operations feel heavier than they should.

1) Real-time payment visibility (instead of chasing)

Skydo positions real-time tracking inside your dashboard so you can see payment status without forcing constant follow-ups. 

2) Cleaner compliance trail (FIRA without the back-and-forth)

Skydo states that FIRA is generated automatically and is available from the dashboard. 

3) Transparent fees + live FX (predictability matters in exports)

Skydo positions flat-fee pricing (instead of percentage skimming) and highlights no hidden <a href="https://www.skydo.com/blog/forex-markup-fee-explained">fx markup</a> on its materials.

4) RBI-authorised framework (trust layer)

Skydo has publicly announced receiving RBI authorisation as a PA-CB.

Bottom line:
EOU vs SEZ decisions improve your export economics.
But your export cycle only feels “smooth” when payments + tracking + documentation stop being a daily uncertainty.

If you want your next USD/EUR receipt to come with visibility + predictable fees + downloadable documentation, Skydo is worth evaluating alongside your existing setup.

Schemes need clean export records. Skydo issues FIRA on every payment, so your scheme claims stay audit-ready.

Export promotion schemes are government programs designed to help businesses sell their products and services in international markets. They offer several benefits to these businesses, like:

There are many such export promotion schemes in India, but most exporters are not taking advantage of these schemes. If you run an agency, SaaS company, MSME or are a freelancer with a strong ambition to grow your business globally, this blog is for you.

In this blog, we will explore the export incentives that matter in 2025 and how to use them for your business.

First: Are You an Exporter? (Most People Don’t Realise They Are)

Let's clear this confusion before we go ahead.

The simplest way to find out if you're an exporter is this: If you’re billing international clients in foreign currency, you’re exporting, even if you don’t ship physical goods.

If any of these sound like you, or even come close, you’re an exporter. In this blog, we’ll break down the top export promotion schemes available, so you can find the ones that apply to you and maximise the benefits for your business

RoDTEP (Remission of Duties and Taxes on Exported Products)

What it is: This is relevant for goods exporters only.<a href="https://www.skydo.com/blog/rodtep-scheme-rates-notifications-and-benefits"> RoDTEP</a> refunds embedded taxes and duties that are not reimbursed under any other scheme. For example, fuel tax paid at the time of transport of goods

Who can use it: Large manufacturers and MSMEs in the D2C, crafts, and electronics space can benefit from this scheme. Exporters working from SEZ or <a href="https://www.skydo.com/blog/eou-full-form-export-oriented-unit">eou</a> areas are also covered. However, digital service exporters aren't covered currently

How to apply: Apply via<a href="https://www.icegate.gov.in/"> ICEGATE</a> during shipping bill filing

Coverage: For FY 2025–26, the scheme includeexport-promotion-schemess 10,780 product categories for Domestic Tariff Area (DTA) exports, covering items like freshwater ornamental fish and natural honey, and 10,795 categories for AA, EOU, and SEZ exports. The benefit is calculated as a percentage of the Free On Board (FOB) value and is reviewed and revised from time to time.

Disbursement Track Record: According to the same source above, as of March 31, 2025, total disbursements under RoDTEP have crossed Rs. 57,976.78 crore

RoSCTL (Rebate of State and Central Taxes and Levies)

What it is: This is best suited for apparel and textile exporters.<a href="https://www.skydo.com/blog/rosctl-scheme-benefits-eligibility"> RoSCTL</a> intends to provide a rebate on embedded taxes and make the Indian textile exports more competitive

Who can use it: This is applicable only for exporters of Apparel (Chapter 61 &amp; 62 of<a href="https://www.dgft.gov.in/CP/?opt=itchs-import-export"> ITC-HS codes</a>), like men's and boys' overcoats,&nbsp; and Made-ups (Chapter 63), like curtains and interior blinds.&nbsp;

Rate Structure: It ranges between 1.7% to 6% of the FOB value

Eligibility: Exporters must apply for the scheme within one year of the shipping bill

How to apply: You can apply for benefits under the RoSCTL scheme from the DGFT website. Remember, you need to have a valid IEC and GSTIN before applying

Cannot combine with RoDTEP: Exporters cannot claim benefits under both RoSCTL and RoDTEP schemes for the same exports.&nbsp;

What it is: This is available to MSMEs and exporters in select sectors. The<a href="https://www.skydo.com/blog/interest-equalisation-scheme-in-india"> Interest Equalization Scheme (IES)</a> provides pre and post-shipment credit to exporters at a subsidised interest rate. It reduces the cost of borrowing and gives them easy access to credit.

Current Status: The scheme has been extended multiple times and is currently available only for MSME manufacturers and exporters with benefits capped at<a href="https://resources.probe42.in/regulatory-updates/rbi-circulars/ies-pre-post-shipment-credit/"> Rs 50 lakhs for FY 2024-25</a>

Sector-Specific Coverage: The scheme covers<a href="https://mpeda.gov.in/exporters/?page_id=1840"> 410 identified tariff lines</a> for general exporters at 2% interest subsidy, while MSME manufacturers get 3% subsidy across all HS lines

How to apply: Head over to the DGFT website. Choose “Interest Equalization Scheme” from the Services dropdown. Click on “Start Fresh Application” and then follow the steps to fill it out.&nbsp;

Recent Disbursement: From April 2023 to November 2024, the government disbursed Rs.<a href="https://economictimes.indiatimes.com/news/economy/foreign-trade/exporters-demand-extension-of-interest-equalisation-scheme/articleshow/117854391.cms?from=mdr"> 2,641.28 crore</a> from the allocated budget of Rs. 2,932 crore.

What it is: This Export Credit Guarantee Corporation (ECGC) export credit insurance scheme protects Indian exporters from buyer defaults, delays, and political risk. This minimises the risk for freelancers and MSMEs entering international markets and guarantees compensation to them if the buyer defaults.

Coverage Percentage: ECGC typically pays 80-90% of the loss incurred by exporters

How to apply: You can apply for a claim from the <a href="https://www.ecgc.in/">ECGC website</a> or go through authorised agents

Claim Timeline: Claims must be lodged within<a href="https://main.ecgc.in/wp-content/uploads/2023/12/Domestic-Credit-Insurance-Policy.pdf"> 360 days from the due date of the bill or 540 days</a> from policy expiry, whichever is earlier

&nbsp;MSME Market Development Assistance (MDA)

What it is: Reimbursement on expenses for participating in international trade fairs, buyer-seller meets, and even foreign marketing collateral. The scheme covers both physical and virtual participation.

Who can use it: Freelancers and agencies can claim marketing costs when expanding overseas.

How to apply: They can apply through the<a href="https://www.dcmsme.gov.in/"> DC-MSME</a> or the export promotion councils at least 14 days before the event

Rate Structure: Financial assistance varies by the region. For developed countries, the rate is up to Rs 2.50 lakh, Rs 2.00 lakh for developing countries, and Rs 1.50 lakh for SAARC countries

Annual Event Limit: Companies can avail MDA benefits for only three events per year. Coverage is limited to one representative per company for foreign participation

Special Categories Support: Women entrepreneurs from the Northeastern regions or SC/ST category do not have to pay rent in the event.&nbsp;

What it is: Targeted at startups and digital services exporters, the Market Access Initiative (MAI) scheme covers costs for international market access like PR, trade visits, certifications, and market research. Startups can access it via DPIIT or the Startup India Hub

Covered activities: Includes marketing projects abroad, capacity building, statutory compliance support, market studies, project development, and foreign trade facilitation

How to apply: You can register your business on the <a href="https://www.startupindia.gov.in/">Startup India</a> portal. You can apply for the MAI scheme with the help of the respective Export Promotion Council (EPC) or trade body relevant to your product

Limit: You can participate in up to 3 MAI events in a year

Here's a quick snapshot of these schemes and what benefits they offer

Discontinued but Frequently Searched Export Promotion Scheme: SEIS &amp; MEIS

The following two export schemes have been discontinued. However, due to their popularity, they are frequently searched by exporters. We included these schemes to let you know what they offered, when they were discontinued, and which new schemes have almost replaced them.

SEIS – Service Exports from India Scheme

Status: Discontinued after FY2019–20.

What it offered: The<a href="https://www.skydo.com/blog/seis-guide"> Service Exports from India Scheme (SEIS)</a> provided incentives typically in the range of 3–7% of net foreign exchange earned to service exporters, including IT, marketing, and consulting. The scheme offered duty credit scrips, which the service providers could use to cover various duties and taxes.

Who benefited: Many freelancers, SaaS founders, agencies, and independent consultants were able to claim these rewards for exporting services.

Why it mattered: SEIS was a major support for small and mid-sized service exporters to help them reduce costs and improve global competitiveness.

Current situation: The scheme has not been renewed, and there is no direct replacement for service exporters. However, some gaps are partially filled by the Market Access Initiative (MAI), Interest Equalization Scheme (IES), and startup-focused programs.

What to do now: Service exporters should explore MAI support for marketing and certifications. They must check the eligibility for Startup India benefits and IES for any export-linked credit needs.

MEIS – Merchandise Exports from India Scheme

Status: Replaced by RoDTEP in 2021.

What it offered: The Merchandise Exports from India Scheme (MEIS) provided incentives typically between<a href="https://worldtradescanner.com/MEISApp3BTable2.pdf"> 2% to 5%</a> to goods exporters based on the destination country and product category. Like SEIS, the exporters were offered scrips usable for paying customs duties.

Who benefited: MSMEs, D2C brands, and traditional exporters of physical goods.

Key difference: In MEIS, the incentive was calculated as a certain percentage of export pricing, which the exporter could use to pay off import duties. With RoDTEP, the exporters can use the credit scrips to pay for embedded taxes and nothing else

What to do now: Exporters should focus on RoDTEP for goods exports and ensure proper documentation during shipping bill filing to claim benefits.

Documents You’ll Always Need to Claim Benefits

The exact documents will depend on the scheme you're applying for. Having said that, the following basic documents are almost always needed:

IEC (Importer Exporter Code): The<a href="https://www.skydo.com/blog/iec-code-apply-online"> Importer Exporter Code (IEC)</a> is a 10-digit code issued by the<a href="https://content.dgft.gov.in/Website/DGFT%20-%20IEC%20Module%20User%20Help%20File.pdf"> Directorate General of Foreign Trade (DGFT)</a> for anyone involved in exporting or importing goods and services from India. It is essential for customs clearance, receiving foreign payments, and applying for export incentives. You can apply for an IEC online through the DGFT portal by submitting documents such as your PAN, certificate of incorporation, address proof, and bank details. Typically, the IEC is processed within 1–2 working days

FIRA (Foreign Inward Remittance Advice): The<a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance"> Foreign Inward Remittance Advice (FIRA)</a> is proof that you have received a foreign currency payment into your Indian bank account. It contains important details, like the beneficiary’s name, amount received, currency, sender information, and the purpose of the remittance. The FIRA helps you to stay compliant with the regulatory requirements and claim export incentives

eBRC (Electronic Bank Realization Certificate): The<a href="about:blank"> Electronic Bank Realization Certificate (eBRC)</a> is a digital certificate issued by banks confirming that payment for exported goods or services has been received in foreign currency. Banks upload the XML file of the <a href="https://www.skydo.com/blog/what-is-e-brc">ebrcs</a> directly to the DGFT portal. The DGFT confirms the details and notifies the bank after successful verification. You can later log in to the DGFT website, check the eBRC status, and take a printout when it's ready

How MSMEs Can Apply Without Getting Overwhelmed

The process of applying for benefits under different export incentive schemes can be overwhelming. Especially if you're doing it for the first time. So, here's a step-by-step guide to help you with the process:

Many inexperienced exporters also hold themselves back from claiming benefits under these schemes due to certain misconceptions. We have gathered the most popular ones to set the record straight

&nbsp;State-Level Export Incentives (Hidden Gems)

Many Indian states offer export incentives to help local businesses grow globally. These incentives are offered in the form of marketing grants, interest subsidies, and website reimbursements. Here are a few examples:

To know if your state offers similar export incentives, try out this simple step: Search “[Your State] + MSME export incentive” or visit the Industries Department website.

Make the Most of your Export Payments with Skydo

Export incentives are designed to make Indian businesses more competitive globally, but they’re only part of the picture. A lot of exporters still lose money while receiving their payments because of SWIFT charges, delays, and poor exchange rates.

We help Indian exporters,&nbsp; from large companies to sole proprietors, <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">receive international payments</a> with no hidden fees or delays. You get virtual accounts in major currencies, live exchange rates, automated FIRA, GST-compliant invoicing, and real-time tracking. All with one flat fee.

If you're already making the most of export incentives, it’s time to fix how you get paid too.

Indian exports are booming,&nbsp;<a href="https://utkarsh.com/current-affairs/indian-export-touch-a-historic-high-of-usd-77821-billion-in-2023-24">USD 437 billion</a> in 2023-24. But finding international buyers is still the hard part.

This surge is getting more manufacturers and businesses excited about looking beyond our domestic borders. The government is pushing exports hard; the numbers show it's working. But here's the thing - finding overseas buyers is still an uphill climb, especially for newcomers.

We've been researching this space and talking to actual exporters who've made it work. In this guide, we'll share some lesser-talked-about ways to find buyers for your exports from India, whether you're just starting out or looking to expand your existing business.

Strategies for New Exporters and Businesses to Find Buyers for Goods Exports from India

Finding international buyers is challenging for Indian exporters, especially when starting out. The main issue isn't product quality but building trust and credibility with overseas buyers who don't know you. Most exporters make the mistake of cold emailing random companies or posting on generic B2B platforms, which rarely works. You need smarter, targeted approaches.

Register with FIEO and Your Industry EPC


Start by getting a membership with<a href="https://fieo.org/"> FIEO (Federation of Indian Export Organisations)</a>, which connects you to a network of over 200,000+ Indian exporters. You’ll gain access to buyer-seller meets where vetted global importers come specifically looking for suppliers.

These councils regularly host targeted trade events where you'll meet buyers already interested in your product category, making your outreach focused and meaningful.

Attend introductory events (even the small ones)

Apply for the MAI scheme funding to attend these government-sponsored events where pre-qualified buyers come looking for suppliers:

Research attendee lists beforehand and book meetings in advance. Smaller events often give you more face time with serious buyers.

Optimise your profiles on these platforms where international buyers actively search for Indian suppliers:

Include HS codes, certifications, and export experience in your listings. Respond to inquiries within 6 hours - speed matters to international buyers.

Check website age and government certifications before engaging

Before engaging with any potential buyer, always check how long their website has been active - it tells you how established they are in business. Also, ask for their government certificates and approvals upfront. 

This simple verification step helps you avoid time-wasters and scammers who, unfortunately, target new exporters looking to make their first international sale.

Strategies for Experienced Service SMEs to Find Buyers for Goods Exports from India

Once you've got our export operations up and running, it's time to get smarter and more strategic. The methods that worked when you were starting out need to evolve into data-driven, professional approaches that can scale our business significantly.

Master data-driven targeting with trade databases

Instead of shooting in the dark, let's use actual trade data to identify hot prospects.<a href="https://comtrade.un.org/"> UN Comtrade</a> and<a href="https://www.trademap.org/"> ITC Trade Map</a> are goldmines showing which countries and companies import your product.

&nbsp;For instance, if you export garments, you can see that US textile and apparel imports from India hit <a href="https://www.thehindu.com/business/textile-and-apparel-exporters-suggest-reduction-in-tariff-with-the-us/article69307291.ece#:~:text=In%202024%2C%20the%20U.S.%20T%26A,U.S.%20T%26A%20exports%20to%20India.">$10.8 billion</a> in 2024. But here's the smart part - these databases also reveal which specific companies are importing.

Use Trade Map's company database feature to find actual importer names and contact details. You can filter by country, product category, and import volumes to identify companies that are already buying what you sell, just from other suppliers. This beats cold emailing random companies by miles because you're approaching buyers who have proven demand and budget. The Govt launched a<a href="https://www.pib.gov.in/PressReleasePage.aspx?PRID=2191430&amp;utm_source=chatgpt.com"> Trade Intelligence &amp; Analytics (TIA) portal </a>on 18 Nov 2025 to make trade data easier for exporters/MSMEs to use for market discovery and decision-making.&nbsp;Use it to spot countries where demand for your HS code is rising, and shortlist markets before you spend on outreach/travel.”

💡Pro tip: Look for an overseas market where India's share is small but growing, indicating untapped potential for positioning yourself as an alternative supplier. For example, <a href="https://shenglufashion.com/2022/04/20/japanese-fashion-companies-continue-to-diversify-apparel-sourcing-base/#:~:text=Japanese%20fashion%20companies%20primarily%20source,and%20Taiwan%20($92%20million).">Japan</a> traditionally sources textiles heavily from China and Vietnam, creating opportunities for Indian exporters to position themselves as alternative suppliers.&nbsp;

Use buying agents and commission-based partnerships

Here's something that actually works based on real exporters' experience: Instead of chasing every buyer yourself, let local buying agents do the heavy lifting. A successful garment exporter mentioned buying offices that take <a href="https://www.reddit.com/r/IndiaBusiness/comments/1kmetmt/comment/ms9mb4n/?utm_source=share&amp;utm_medium=web3x&amp;utm_name=web3xcss&amp;utm_term=1&amp;utm_content=share_button">3-5%</a> commission but handle all the relationship building, saving massive travel and networking costs.

These agents already have established relationships with importers in specific regions. They understand local market preferences, handle negotiations in the buyer's time zone, and can provide market intelligence you'd never get on your own. Look for buying agents through industry directories, trade fairs, or LinkedIn searches for "[your product] buying agent [target country]."

The key is finding agents who specialise in your product category and have a proven track record. Ask for references from other Indian suppliers they represent, and start with non-exclusive agreements until they prove their worth.

Deploy advanced LinkedIn Sales Navigator techniques

Basic LinkedIn isn't enough anymore.<a href="https://business.linkedin.com/sales-solutions/sales-navigator"> LinkedIn Sales Navigator</a> gives you surgical precision in finding procurement managers abroad.&nbsp;

Use Boolean search strings like: "(Procurement OR Sourcing OR "Import Manager") AND (textiles OR apparel) NOT (assistant OR intern)" to find decision-makers in your industry.

The "connections of" filter on Sales Navigator helps you see who your existing clients are connected to in a particular industry. These warm connections are 10x more likely to respond than <a href="https://www.skydo.com/blog/checklist-for-cold-outreach">cold outreach</a> because you have a mutual connection.

Export your leads using tools like<a href="https://evaboot.com/"> Evaboot</a> or<a href="https://prospeo.io/"> Prospeo</a> (which can find email addresses for up to 45% of LinkedIn profiles). Create targeted email sequences through your CRM, mentioning the mutual connection and being specific about why you're reaching out.

Remember geographic targeting, time your messages to land in their inbox during their business hours and use terminology they understand (American English for US buyers, British English for UK buyers).

Partner with complementary businesses for larger opportunities

Instead of competing alone, team up with other Indian exporters to bid for large contracts that no single company can handle. This is especially effective for government tenders or large corporate contracts where buyers need huge volumes or multiple product categories.

Create formal consortia with complementary businesses. Partner with accessory manufacturers, packaging companies, or logistics providers if you export textiles. This lets you offer complete solutions rather than just products, which buyers increasingly prefer.

Document these partnerships properly and present them professionally in your pitches. Large buyers love dealing with consortia because it reduces their vendor management overhead while ensuring consistent supply.

What are The Modern Digital Discovery Channels to find Overseas Clients for your Goods Exports?

Digital discovery has completely changed the game for exporters. You are no longer limited to trade fairs and cold calls - now you can identify, conduct market research, and connect with international buyers from our desks.&nbsp;

But here's the thing: everyone's doing "digital outreach" now, so you need to be smarter about it.

Apart from leveraging the LinkedIn Sales Navigator features, you can also do the following on this platform:&nbsp;

Smart cold outreach that doesn't feel cold

Traditional cold emailing has a 1-2% response rate, but personalized, research-backed outreach can hit 15-20%. The key is making it not feel cold at all.

Social media platforms beyond the obvious

As your digital outreach grows, you need systems to manage it all. Use a CRM like<a href="https://www.zoho.com/crm/"> Zoho</a> (India-made),<a href="https://www.hubspot.com/"> HubSpot</a> (free version available), or<a href="https://www.pipedrive.com/"> Pipedrive</a> to track every interaction.

The key to modern digital discovery is being systematic, not scattered. Pick 2-3 channels, master them completely, then expand. Quality beats quantity every time in international business.

Government Platforms and Schemes to help find overseas clients

The government runs several platforms and schemes to help exporters find overseas buyers, though they're spread across different departments and can be confusing to navigate.

Trade Connect e-Platform: The government's "ChatGPT for exporters"

DGFT's<a href="https://www.trade.gov.in/"> Trade Connect portal</a> launched in 2024, is what Commerce Minister Piyush Goyal calls "ChatGPT for our exporters." This isn't just another government website - it's a single dashboard that connects over 6 lakh <a href="https://www.skydo.com/blog/iec-code-apply-online">iec</a> holders with 180+ Indian Mission officials and 600+ Export Promotion Council officials.

It's designed for MSMEs with small research budgets. Instead of hunting through 10 different websites for market information, you get everything on one platform. Plus, it connects you directly with commercial officers at Indian embassies who can introduce you to local importers.

Export Promotion Councils: Your industry insiders

Beyond basic registration, EPCs are goldmines for buyer connections that most exporters underuse. Many EPCs maintain buyer directories that they don't actively promote but are available to members. 

For instance, the<a href="https://hepcindia.com/"> Handloom Export Promotion Council (HEPC)</a> or<a href="https://www.eepcindia.org/"> Engineering Export Promotion Council (EEPC)</a> regularly gets inquiries from overseas buyers looking for specific products.

EPCs also facilitate international tenders. A successful handicrafts exporter mentioned how EPCH connected them with a major US retailer through a reverse buyer-seller meet. The retailer had specifically approached EPCH to look for authentic Indian handicraft suppliers, and because this exporter was an engaged member, they got the introduction.

Export Promotion Councils to focus on:

Financial schemes that make you more competitive

The<a href="https://www.commerce.gov.in/international-trade/trade-promotion-programmes-and-schemes/market-access-initiative-mai-scheme/"> Market Access Initiative (MAI) scheme</a> provides funds for international marketing, but most small exporters are unaware of it. MAI provides up to ₹75,000 (₹1,25,000 for Africa and the Americas) for economy airfare reimbursement when you participate in EPC-led international trade fairs.

You can participate in up to 3 MAI events per year. You can do five annual events in different markets for SC/ST/Women exporters and those with exports under ₹50 crores. This means the government is essentially subsidizing your international business development trips.

<a href="https://cleartax.in/s/rodtep-scheme">RoDTEP (Remission of Duties and Taxes on Export Products)</a> is the new export incentive that replaced MEIS. It refunds embedded taxes that you can't claim anywhere else - things like electricity duty, fuel taxes, mandi tax, and coal cess. The refund rates range from 0.01% to 4.3% of your FOB value, issued as transferable electronic scrips.

This makes your pricing more competitive because you're not absorbing these hidden costs. When you quote to international buyers, your prices can be 2-4% lower than competitors who aren't using RoDTEP effectively.

ECGC: Making foreign buyers comfortable with Indian SMEs

<a href="https://www.ecgc.in/">Export Credit Guarantee Corporation (ECGC)</a> provides export credit insurance that covers 80-90% of your export value if overseas buyers default. But here's the strategic angle most exporters miss: ECGC insurance makes foreign buyers more comfortable dealing with you.

When you tell an international buyer that your shipments are covered by ECGC insurance, it signals that you're a serious, government-backed exporter. Large buyers especially prefer suppliers who have export credit insurance because it reduces their supply chain risk.

Once your pitch lands global investors or clients, Skydo helps you receive payments cleanly with flat fees and FIRA.

What are your monthly sales and how much gross margin do you earn? What is your company's valuation? How much cash are you burning every month? — You must be familiar with these questions if you've been binging on Shark Tank India over the past couple of months. Sharks essentially ask these questions to assess a startup's financial performance and profit potential.

Therefore, these questions are pertinent for entrepreneurs, especially if you want to seek investment in the future or expand your business.&nbsp;

Understanding these financial principles helps you make better decisions and negotiate with investors to maximise valuation and minimise equity dilution. Let's see the most popular terms used in Shark Tank and how they apply to your business.&nbsp;

Top 10 Shark Tank terms you should know to maximize valuation while minimizing equity dilution

Valuation is the true value or economic worth of your startup. Sharks invest in a startup in exchange for a certain percentage of ownership or equity. Valuation helps determine the price per share of the company and the worth of the investor’s ownership of the company.

For example, if a shark has 10% ownership in a startup whose valuation is Rs. 1 crore, they get shares worth Rs. 10,00,000.

For early-age startups that do not have sufficient financial data to show their performance, valuation is calculated via multiple means like comparing the valuation of their competitors, the company's ability to prove its potential customer base, the strength of the founding team and more such parameters.&nbsp;

Investors consider various factors such as market size, revenue and financial performance, intellectual property, founder’s expertise and unique selling proposition to calculate a startup's valuation.

Valuation is of two types: pre-money and post-money valuation. The pre-money valuation is the value of your company before seeking investment. Once you seek outside investment, the valuation increases and is called post-money valuation.

For example, if your pre-money valuation is Rs. 1 crore and you receive an external investment of Rs. 70 lakhs, the post-money valuation will be Rs. 1,70,00,000.

Equity means the total ownership of your startup and is calculated in percentage. If you are a sole entrepreneur and haven’t sought outside investment, you have complete ownership or 100% equity in the company.

In the case of two co-founders, the ownership or equity is either divided equally (each founder has 50% ownership of the company) or proportionately based on capital invested, expertise and other factors.&nbsp;

When investors agree to invest in a company, they get a certain ownership or equity in your business. So when a shark says that they want to invest 50 lakhs in a startup for 6% equity, it means that they get 6% ownership in the company whereas the founders are left with 94% equity.&nbsp;

For example, Nascher Miles, a luggage brand, had initially pitched for ₹3 crore funding for 0.75% equity in Shark Tank India season 3. However, they received ₹3 crore funding at 1.5% equity and a ₹200 crores valuation. This means that sharks own 1.5% of the company.

As startups go through subsequent funding rounds, the equity gets distributed to new investors and even valuable employees as <a href="https://www.nishithdesai.com/fileadmin/user_upload/pdfs/Research_Papers/ESOPs-and-Other-Benefits-Plans-for-Employees-in-India.pdf">employee stock option plan (ESOP).</a>&nbsp;

Cash flow is defined as the movement of cash in (while receiving customer payments) and out of the business (for vendor payments or other expenses).

When the cash inflow is higher than the outflow (income is higher than the expenses), the cash flow is termed positive. However, when money moving out is more than the cash coming in, you have a negative cash flow.

Cash flow is different from profits which represents the balance amount after deducting all expenses. Even if your company has generated profits but the customer payments are delayed, you wouldn't have sufficient cash to manage your daily operations such as purchasing new inventory or paying rent. Therefore, a positive cash flow is important for business survival.&nbsp;

Margin is the difference between the selling price and the cost price of a product.&nbsp;For example, if the cost to produce a product is ₹50 and the selling price is ₹75, the gross profit margin will be 33.33%. This margin, also known as the gross operating margin, focuses solely on direct costs such as materials and labour, excluding indirect expenses like overhead or marketing

However, the net profit margin is calculated by deducting taxes, interest, and any other expense from the income.&nbsp;

Higher profit margins indicate a positive financial health of the company. Investors can understand how much a company can earn after deducting the expenses and whether it will have sufficient funds in the future for sustainable growth.

Growing Global

Scale up & Streamline blogs