Bilateral Trade: A Practical Guide for Indian Startups

Ever wondered why some Indian startups explode overseas while others stay stuck at home? The secret often lies in how they use bilateral trade agreements. These pacts are not just government paperwork; they are shortcuts that lower tariffs, open new distribution channels, and give startups a leg up against bigger rivals.

First, grab a copy of the latest India‑Australia or India‑EU trade deal. Spot the sections that mention "services" and "intellectual property" – they usually contain the most value for tech‑driven firms. If your product is software, a clause reducing customs duties on related hardware can shave off 10‑15% of costs right away.

Turning Policy Into Profit

Startups often overlook the export incentives built into bilateral trade. For example, the Merchandise Exports from India Scheme (MEIS) offers rebates when you ship to countries covered by a free‑trade agreement. To claim it, you need a valid Export Promotion Capital Goods (EPCG) licence and a clear invoice showing the destination country. The paperwork sounds messy, but a quick chat with your finance team can map out the exact rebate you’ll get.

Next, think about local partnerships. A bilateral treaty usually encourages joint ventures by simplifying visa rules for foreign experts. If you’re a health‑tech startup, teaming up with a European research lab can give you access to clinical trial data without the usual red‑tape. That speeds up product launches and makes investors take notice.

Practical Steps to Ride the Bilateral Wave

1. Identify your target market. Look beyond revenue – consider where your tech solves a real pain point. Use tools like Trade Map to see which countries import your product category the most.

2. Match your product to the right agreement. Not every deal covers every sector. Some focus on textiles, others on digital services. Pinpoint the agreement that mentions your industry.

3. Register with the relevant bodies. In India, that means the Directorate General of Foreign Trade (DGFT) and possibly the Export Promotion Council for your sector. Registration unlocks tariff concessions and simplified customs clearance.

4. Leverage government grants. Many bilateral initiatives come with funding for market research, certification, or hiring local talent. The Startup India portal lists these grants; filter by "export".

5. Stay compliant. Rules change, especially after elections or trade disputes. Set a reminder to review the agreement annually and adjust pricing or documentation accordingly.

Finally, treat bilateral trade as a continuous experiment. Test a small batch of shipments, track costs, and ask customers for feedback. If the numbers look good, scale up. If not, tweak your partner network or switch to a different agreement.

Bottom line: Bilateral trade isn’t a buzzword; it’s a toolbox that can shave costs, open doors, and fast‑track growth. By digging into the details, aligning your product, and staying on top of policy shifts, Indian startups can turn a simple trade pact into a competitive advantage.

India-UK FTA Talks Set to Resume: Leaders Aim for $120 Billion Trade Target

7.05.2025 By: Aarav Bhatnagar

India and the UK are restarting FTA negotiations in February 2025, with top ministers meeting in Delhi to push a trade pact. Their goal: double trade to $120 billion by 2030, cut tariffs, boost key sectors, and ease rules for Indian workers in Britain.