The Indian government has fixed a ambitious target of earning $900 billion annually by 2020. As India started its path as an emerging economy with a consumer hungry market, it naturally spends foreign exchange more than the amount it earns. To keep the country’s currency stable and to keep considerable amount of foreign currency reserve, the Indian Government is trying at various levels to improve its export business horizons.
One of the key initiative is to provide the exporters with incentive bonus for the exports they make. Previously incentives were provided only for the export of goods. Now the government of India started to provide incentives for service exports also. It has been classified as MEIS and SEIS. MEIS is Merchandise Export Incentive Scheme and SEIS is Service Export from India Scheme.
A 20-30 day journey: Europe to India
- Chase the bank to get the transaction started
- Money is routed to big players in the EU
- Money is sent to big players in India
- Money arrives in the local bank
Depending upon the product which has been exported and the country to which it has been exported, the incentives varies from 3-7% on the entire forex earned by the exporter. Apart from this, government bodies like Spices Board for Exporter, Coir Board, Agricultural and Processed Food Products Export Development Authority, Export benefits from Engineering Export Promotion Council, Silk Board, Tea Board, Coffee Board for exporters, Spices Board of India and many others provide the exporters with various other incentive benefits.
These kind of schemes gives the Indian exporters a competitive advantage over the global exporters. In heavily competitive markets like textile export, Indian exporters sometimes work on zero margin and rely purely on the export incentives alone.
Having a virtual european bank account is a way to solve these kind of problems which is common for Indian service providers. Having a virtual bank account enables them to receive payments from their European customers as well and they could use the same amount to do local transfers to their sales consultants within SEPA payment system. This saves the Indian service providers with lot of cost and time.
How a virtual bank account solves this problem:
Get a B2B Pay virtual bank account with unique IBAN number. Your new non resident bank account is linked to your business bank account in your home country. You get a faster, 80% cheaper and transparent B2B transfer.
With B2B Pay, your company:
- Gets its own non resident bank account in Europe
- Can receive free payments from 35 EU countries in 2-12 hours
- Can make SEPA payments to 35 EU countries
- Saves €30 SWIFT fee and +80% on Foreign Exchange (FX)
- Can take advantage of FX conversion automation
- Can integrate with marketplaces and payment gateways
- Can make global payments in 138 currencies
- Gets Instant notifications of incoming payments
- Can take advantage of online onboarding