π Why Africa Is the Next Big Market for Indian Exporters (2025 Insight)
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When you are an exporter in India, your profit does not only rely on your cost of product or your shipping but also on the exchange rate. A minor variation in foreign exchange (forex) rates will either increase your profit or reduce your margins significantly.
In this article, we will show how the exchange rates influence exports and give some simple tips on how to secure your income.
It is the price of a currency on another. For example:
1 dollar = 83.10 INR (June 2025)
And assuming that the rate remains the same, you will get 831,000 rupees when you export the goods worth 10,000 dollars. However, when the rate goes up to 80, your amount becomes 800,000 80 = 31,000 loss just due to the exchange rate.
The changes in currency rates are as a result of:
A 12 move of 122 or 22 may cause a devastating effect on your pricing and profits, particularly in large-volume exports.
Preferably, make buyers pay using INR. It eliminates the forex risk but can decrease the interest of the buyers.
Request a forward contract at your bank to fix today exchange rate on a future payment.
Make sure you target buyers across a variety of countries, thus you are not relying on a single currency.
The quicker payments minimize the timing of the currency.
Price planning with currency risk calculator. Change your profit levels.
Letβs say your cost is βΉ700,000, and you invoice $10,000.
If $1 = βΉ83 β You earn βΉ830,000 β Profit = βΉ130,000
If $1 = βΉ80 β You earn βΉ800,000 β Profit = βΉ100,000`
You lose βΉ30,000 due to currency dip. Thatβs 23% of your profit!
You should never forget to monitor real time exchange rates
Need help calculating profit based on forex rate? Visit: www.vskglobaltrade.co.in
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Published by VSK Global Trade β Helping Exporters Maximize Profits Worldwide.
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