Updated: 14th November 2025 Foreign Inward Remittance Certificate (FIRC) is a key term for anyone in India receiving payments from abroad,&nbsp; be it exporters shipping goods overseas or freelancers offering services to international clients.

Are you dealing with international payments and confused by terms like FIRC? If you’ve ever received money from abroad for your business or freelance work, you might have been told to get a FIRC. Don’t worry – you’re not alone in finding this acronym puzzling. In this conversational guide, we’ll demystify Foreign Inward Remittance Certificates (FIRC) – explaining what they are (including the full form and meaning), why they’re important, who needs them, and how to obtain one. By the end, you’ll know exactly why FIRC matters for Indian exporters, freelancers, small businesses, and even accountants handling cross-border transactions. Plus, we’ll share tips on making the whole process much easier (hint: there are modern solutions that do the heavy lifting for you). Let’s dive in!

Let’s start with the basics: FIRC stands for Foreign Inward Remittance Certificate. It’s essentially an official document from an Indian bank that confirms you’ve received a payment from abroad. Think of it as a receipt or proof of an inward remittance (foreign money transfer) into your Indian bank account.

In practical terms, a FIRC contains details of the foreign payment you received – such as the amount in foreign currency and INR, who sent the money (the sender’s name and country), who received it (your name/business name), the date, and the purpose of the payment. It’s issued by your bank (specifically, banks authorized to deal in foreign exchange, known as AD Category I banks) whenever you receive money from overseas.

In simpler words: if a client overseas wires you funds for an export or a freelance project, the FIRC is the document from your bank saying “Yes, we’ve got the money from abroad, and here are the details.” It’s an official proof that foreign funds landed in India into your account.

Quick note: Sometimes people use “FIRC” loosely to also refer to similar documents like a foreign inward remittance advice (FIRA).&nbsp; Essentially, all these serve the same purpose – proving that an international payment was received. We’ll explain the differences in a bit, but generally if someone asks for a FIRC, they mean the proof of a foreign payment credit.

Whether you are an Indian exporter, a freelancer providing services globally, or a small business owner, obtaining a FIRC (or its equivalent advice) for your foreign earnings is very important. Here are the key reasons why a FIRC matters so much:

In summary, a FIRC is more than just a piece of paper. It’s crucial for compliance, unlocking financial benefits, and keeping clean records of your foreign income. In India’s regulated foreign exchange environment, this certificate (or its digital equivalent) becomes a cornerstone for anyone transacting internationally.

Now that we know why it’s important, you might wonder: “Do I actually need a FIRC?” If you fall into any of the following categories, the answer is likely yes:

In a nutshell, any Indian individual or business receiving money from outside India should obtain a FIRC for each such inward payment. This spans everyone from large export firms to freelance graphic designers paid via PayPal. It’s a best practice even if not mandatory in every case, because it’s your safety net and proof if questions arise later.

FIRC in India: RBI Guidelines and the Switch to FIRA

It’s important to understand how FIRCs are handled in India today, because there have been regulatory changes in the past decade. Historically, banks issued a physical FIRC on security paper for every foreign inward remittance received against exports. However, since 2016, the RBI changed the process for most cases. Let’s break down what that means:

You might also have seen the term e-FIRC. This is a bit tricky because e-FIRC isn’t a separate document you receive in hand – it’s more of a concept/number in the background banking systems.

For most small businesses or freelancers who use a single bank (or a single platform) to both receive funds and handle paperwork, you may not need to worry much about the term “e-FIRC” – your bank’s advice and the automated systems take care of it. Just know that it refers to the electronic trail of your remittance in RBI’s systems.

Two acronyms that often come up together in export finance are FIRC and BRC. They are related but serve different purposes, and it’s important not to confuse them:

In simpler terms, think of it as a two-step chain: First, you get the FIRC/FIRA when money comes in. Then, that leads to a BRC which connects the money to a specific export transaction.

For example, suppose you shipped 100 units of a product on a certain date (your shipping bill records this) and later you got USD 1,000 for that shipment. When the $1,000 arrives, your bank gives you a FIRA confirming receipt. You then inform the bank (or it knows via systems) that this $1,000 corresponds to that shipping bill. The bank updates the records and an e-BRC is generated which you can download from the DGFT portal as proof that the export transaction is closed with payment received. Why is BRC needed? Because to claim many export incentives or to fulfill export obligations, you have to show BRCs to the government – it proves you not only exported but also got paid for it.

Bottom line: FIRC (or FIRA) confirms money received; BRC confirms that money was tied to an export. Both are important for exporters of goods (first you get FIRC, then BRC to claim benefits). Freelancers and pure service exporters mostly just handle FIRCs unless they are in scenarios that require reporting exports formally.

&nbsp;You can use this decision tree to decide which one do you need.&nbsp;

FIRC Certificate Format:&nbsp; What Information Does it Include?

This is a sample FIRC document. All crucial remittance details have been masked for security purposes. Now let’s break the content of a FIRC down: 

If you’ve never seen a FIRC or FIRA document, you might wonder what it looks like and what details it carries. While formats can vary slightly from bank to bank, a typical FIRC/FIRA document (usually a PDF or letter these days) will include the following key information:

A modern FIRA might not have the word “Certificate” on it, but it contains the same info as the old FIRC. Some banks still title it “Certificate of Foreign Inward Remittance” even if it’s a PDF. In any case, all the above details are what make it valuable – ensure everything matches your expectations when you receive one (more on that in a moment).

How to Obtain a FIRC (Procedure to Get the Certificate)

Obtaining a FIRC or FIRA for a foreign payment is not always automatic – often, you’ll need to request it from your bank. The process can vary slightly by bank, but here’s a general step-by-step guide for Indian businesses or freelancers:

1. Receive the Foreign Payment: This might sound obvious, but you can only get a FIRC after the money from abroad has credited to your bank account in India. So, first step – make sure the funds have arrived. Note down the transaction details like the date of credit, the amount in foreign currency and INR, and any reference number (UTR) if available. This info will be needed for the request.

2. Contact Your Bank to Request the FIRC/FIRA: Reach out to your bank’s branch or your relationship manager and let them know you need a FIRC (Foreign Inward Remittance Certificate) or advice for a particular transaction. Many banks have a specific form or format for this request. Depending on the bank, you might do one of the following:

In your request, you’ll generally need to provide:

Tip: If your bank has a mobile app or online banking, search for terms like “FIRC request” or “Remittance Certificate” – some banks have digitized this. Otherwise, a quick email to your branch manager with the details might do the trick.

3. Provide Supporting Documents (if required): Banks might ask for some documents to ensure the request is legit and to attach as proof of the transaction’s purpose. Common ones include:

Not every bank will ask for all of these – often if the transaction was straightforward and coded correctly, a FIRC request might go through with just the form. But don’t be surprised if they ask for an invoice copy or such, especially for higher amounts or the first time you’re requesting.

4. Pay the Bank’s Fee (if any): Here’s the part not everyone realizes: many banks charge a small processing fee for issuing a FIRC/FIRA. The fee varies by bank but is typically in the range of ₹200 to ₹500 per certificate, plus GST. For example, one bank might charge ₹300 + taxes for each FIRC. Some banks waive it for premium account holders or in special cases, but generally expect a fee. Usually, the bank will deduct this fee from your account or ask you to pay it upfront. When you fill the request form, it might mention the fee or your branch will inform you. (As a rough timeline, after you request, it often takes around 1–2 weeks for the bank to issue the FIRC. Some get it done in just a few days, but don’t bank on it – pun intended!)

Good News: If this process sounds a bit old-fashioned, you’re right – it can be tedious. But lately, some fintech platforms and modern banking services offer FIRA certificates for free and instantly as a perk. (We’ll talk more about that in a moment when discussing easier ways.)

5. Wait for the Certificate to be Issued: Once you’ve submitted the request (and any docs and fees), the bank’s forex operations team will verify the details. They’ll match the info you gave with the actual inward remittance record. If everything checks out, they will generate the FIRC (or FIRA). Nowadays, this is usually a PDF document on the bank’s letterhead with a digital signature, which they might email to you or make available for download (some still might print it for collection at the branch if you specifically need a hard copy). The time frame can vary:

Keep an eye on the email you provided (and check the spam folder just in case, since it’s often an automated email with a PDF attachment).

6. Verify the Details on the FIRC: When you finally receive the certificate/advice, do not skip this step! Carefully check all the details:

If you spot any error (typos in your name, wrong amount, incorrect purpose code, etc.), contact the bank immediately to correct it. It’s important the FIRC reflects the truth of the transaction. Banks can issue an amended FIRC if needed, but you may have to give proof of the correct info (for instance, if your name was spelled wrong, you might send a copy of your PAN or passport; if the amount in INR is off, maybe a statement copy). It’s best to catch errors early and have them fixed, so you don’t run into problems later when using the FIRC for official purposes.

7. Use the FIRC for Your Needs: Once you have the FIRC/FIRA in hand (or in email):

In short, use the FIRC anywhere you need to prove “I got paid from abroad for X purpose.” It’s your golden ticket for compliance and benefits.

8. Remember: One FIRC = One Transaction: If you receive multiple foreign payments, you will generally need to request separate FIRCs for each. Say you’re a freelancer who got five different payments from five clients – you’d have five FIRC documents (and possibly five fees…). Some payment aggregators or services might give a consolidated statement for multiple small payments, but banks usually treat each inward remittance as a separate record and issue individual certificates.

Getting FIRC the Easy Way (Automatic FIRC with Modern Platforms)

At this point, you might be thinking, “Wow, that’s a lot of steps and wait time just to get a certificate!” 🤯 Indeed, dealing directly with banks for FIRCs can be slow and involve charges. Here’s where fintech solutions come to the rescue.

Platforms like Skydo offer a much smoother experience for handling foreign payments. For instance, when you receive an export payment through Skydo, the FIRC (or FIRA) is generated for you automatically – and at no extra cost. It’s basically built into the process. You don’t have to file separate requests or wait weeks. As soon as the payment is received and processed, you can log into your Skydo dashboard and download the remittance advice instantly. All the details (amount, purpose, etc.) are neatly recorded, compliant with RBI rules, without you lifting a finger to request it.

This kind of solution is a game-changer for freelancers and small businesses: you get paid faster (since such platforms often streamline the transfer) and you get the FIRC document instantly for each transaction. No bank queues, no follow-ups, no fees per certificate. If you’re frequently dealing with international clients, using a modern global payments platform can save you a lot of headaches when it comes to compliance paperwork like FIRCs.

Is FIRC Mandatory for GST Refunds and Other Purposes?

One common question that arises is whether having a FIRC is mandatory for certain claims, especially the GST refunds on exports. The short answer: Yes, if you’re claiming a refund or benefit on the basis of an export, you’ll need proof of foreign inward remittance – usually in the form of FIRC/FIRA.

When you export goods or services from India, those exports are considered “zero-rated” for GST, meaning you don’t have to pay GST on the sale. However, you might have paid GST on inputs (input tax credit) and you’d want to get that refunded since your output was zero-rated. To process this refund, the tax authorities require evidence that you indeed received payment in convertible foreign exchange for that zero-rated supply. FIRC is that evidence. It authenticates that the money entered India’s banking system against your export.

Here’s how it typically works for a GST refund on exports:

If you don’t have a FIRC to show and try to claim a GST refund, the claim likely won’t be accepted because you haven’t furnished proof of realization of export proceeds. It’s a critical document for this purpose.

Similarly, for other schemes like certain subsidies or duty credits for exporters, the requirement is often to show the BRC or FIRC to prove that the export was completed monetarily.

For freelancers or service exporters who may not deal with GST refunds (if, say, you’re below GST threshold or exports of services under LUT), it might not feel “mandatory” day-to-day. But consider that under income tax or any scrutiny, you’d still want that FIRC as proof of earnings. Also, tomorrow if you do register for GST and want to claim something, having FIRCs from the past means you’re prepared.

In summary: For compliance and benefits, having FIRCs is effectively mandatory. It’s part of the paperwork you should maintain if you earn in foreign currency. And specifically for claiming GST refunds on exports, a FIRC is usually non-negotiable.

Conclusion:&nbsp; Making FIRC Hassle-Free

Dealing with cross-border payments can seem daunting at first – there’s compliance to consider and extra paperwork like FIRCs to manage. But understanding the ins and outs of FIRC means you’re now equipped to ensure every dollar, euro, or pound you earn overseas is properly documented without stress.

The good news is that you don’t have to wrestle with these processes alone. As the world of international business is evolving, so are the tools to manage it. Your focus should be on growing your business or honing your craft – not on chasing bank certificates. That’s exactly why platforms like Skydo exist: to simplify global payments and the red tape that comes with them.

With Skydo, for example, you can enjoy seamless international payments with no hidden fees, and every time you receive a cross-border payment, an auto-generated FIRC (remittance advice) is instantly available for you. No special requests, no fees per certificate, no delays – it’s just there, ready to download when you need it. This means you remain fully compliant with RBI rules effortlessly, and you can devote your energy to what truly matters: delivering great products or services and scaling your venture.

In conclusion, a Foreign Inward Remittance Certificate is a vital piece in the jigsaw puzzle of doing business globally from India. It ensures your hard-earned foreign revenues are officially recognized and securely in your pocket (or rather, your bank account). By staying informed and leveraging modern solutions, you can turn what used to be a cumbersome process into a minor footnote in your workflow. Happy exporting (or freelancing), and may all your international payments come with an easy FIRC! 🚀

What is FIRC? Learn the full form, meaning, and how Indian exporters & freelancers can get FIRC or FIRA to claim tax benefits and stay RBI-compliant.

FIRC Full Form, Meaning & Guide for Exporters

Dive into the world of FIRC. Explore the full form, importance, and process of obtaining FIRC for your international transactions

Foreign Inward Remittance Certificate (FIRC): Full form, meaning and RBI guidelines

Prashanth

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Prashanth Kumar

<a href="https://www.bbva.com/en/everything-need-know-psd2/">It all began in 2007 </a>when the European Union launched a directive that majorly streamlined cross-border transactions within the European Economic Area (EEA). The directive called the Payment Service Providers Directive (PSD), aimed to develop a single payment market in the EU and improve the current competition and transactional efficiency.&nbsp;

Before the Payment Service Providers Directive (PSD) was introduced in 2007, conducting cross-border transactions within the European Economic Area (EEA) was a complex and costly process.

You had to deal with multiple banks, various currencies, and high transaction fees, making it challenging to expand your business to international customers. The lack of a unified payment system created inefficiencies, making it difficult to compete with larger businesses.

However, with the implementation of the PSD, the process became much simpler. Now, you can use a single payment service provider to manage transactions in multiple EEA countries, reducing transaction costs and currency exchange hassles. This streamlined approach has opened up new opportunities for your small business to expand across borders, compete more effectively, and serve customers across the EEA with ease.

Although the directive was a huge success, the EU felt that there was room for more innovation.The EU amended PSD in 2009 to create the PSD1 framework, which was again amended in <a href="https://www.ecb.europa.eu/paym/intro/mip-online/2018/html/1803_revisedpsd.en.html">2013 to its current form of PSD2. </a>The current form, PSD2, is widely considered to have ushered in a new era of consumer-centric financial services in the EEA.&nbsp;

You decide to use a budgeting app that provides valuable insights into your spending habits. Using the PSD2 framework, you can now securely link this app to your bank account. This means the app can access your account data with your consent and provide you with more accurate financial advice and budgeting tools.

Consumers now enjoy increased choice, security, transparency, and convenience in their financial transactions.

Yes, PSD2 must sound intriguing to you, but a proper understanding of what PSD2 is is vital in the current scenario when most countries are looking to create a framework similar to PSD2 for international payments.

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The PSD2 (Payment Services Directive 2) is a directive released and managed by the European Union to regulate international <a href="https://www.skydo.com/blog/eefc-account-vs-payment-platforms?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">payment services</a> within the European Economic Area (EEA). The European Union introduced PSD2 to ensure healthy competition, innovation and secure payment process in the European payment industry. PSD2 builds upon the original Payment Services Directive (PSD) and was adopted in 2015, becoming effective on January 13, 2018.

Through the PSD2, the European Union has introduced the Strong Customer Authentication (SCA). SCA completes the transactions by including at least two of the three levels of authorisation: something they know, something they own, and something they are. The transactions require a password or a PIN, a mobile number for OTP and additional security in the form of facial recognition or fingerprint.&nbsp;

PSD2, along with increasing transactional security, has resulted in increased healthy competition by opening up payment services to fintech startups and prompted traditional banks to enhance their offerings. As a result, consumers now enjoy a more user-friendly and cost-effective financial experience.

With a broader range of payment services, consumers can <a href="https://www.skydo.com/blog/top-paypal-india-alternatives-for-international-payment">choose a payment service provider</a> with higher customer protection measures and lower transaction fees, further establishing the need for innovation to sustain.

How is PSD2 relevant to Stop Hidden Fees?

PSD2's relevance to stop hidden fees lies in its potential to address opaque pricing practices in international payments. Set to be incorporated into UK law, these regulations prohibit non-transparent pricing methods. Currently, banks and brokers often conceal costs within unfavourable exchange rates, catching customers off guard with undisclosed fees.&nbsp;

PSD2 emphasises the need for consumers to know the 'real costs and charges' associated with cross-border money transfers, echoing the initial Payment Services Directive (PSD). The crucial aspect is whether the government will uphold this commitment, considering past instances of non-compliance. PSD2 presents an opportunity to combat hidden fees and enhance transparency in financial transactions.

Open banking is a broader concept that refers to the practice of banks and other financial institutions opening up access to their customer’s financial data, with their consent, to third-party providers (TPPs) through secure APIs (Application Programming Interfaces). This data sharing allows TPPs to develop new financial products and services.&nbsp;

The concept of open banking started in 2007, with the EU introducing the PSD (Payment Service Providers Directive) to ensure a single payment market in the EU. However, in 2013, the EU proposed an amendment, giving rise to the PSD2. The amended directive introduced the concept of TPPs to give a much-needed push to the opening banking spectrum.&nbsp;

PSD2 serves as the legal framework within the EU that enables open banking practices. It sets the regulatory foundation for secure financial data sharing between banks and third-party providers. Under the PSD2 regulation, the banks are required to provide customers' account information (after their consent) to third-party service providers, allowing customers to:&nbsp;

With PSD2’s push to open banking, the practice allows customers to access a broader spectrum of financial services, including payment initiation, account aggregation and personal financial management. Now, the customer can choose from a host of third-party providers (TPPs) and applications to execute international payments effectively.&nbsp;

Several fintech companies have leveraged the regulatory framework provided by PSD2 to develop efficient and cost-effective <a href="https://www.skydo.com/blog/real-time-tracking-of-international-payments">international payment services.</a> These companies have utilised access to bank APIs and customer account data to create innovative solutions. Some examples include <a href="https://www.skydo.com/blog/top_5_wise_alternatives_for_international_payment">Wise</a>, <a href="https://www.skydo.com/blog/top-paypal-india-alternatives-for-international-payment">PayPal</a>, <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Skydo</a>, TransferGo etc.&nbsp;

Here is the impact of PSD2 on international payments: 

The main motive behind amending PSD and PSD1 to create PSD2 or even introducing such a directive has always been targeted towards the end consumers making <a href="https://www.skydo.com/blog/cut-international-transaction-costs?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">international transactions</a>. With PSD2 and open banking, they have experienced several benefits in terms of competition, transparency, cost and security.&nbsp;

Global Implications and Future Trends&nbsp;

The introduction of PSD2 by the EU has been a motivating step for global economies as they look to revolutionise their payment industry. Since the EU introduced PSD2, financial experts, policymakers and regulators in other countries are working towards creating a similar framework to promote competition, innovation, and security in financial services. Currently, countries outside the EEA are exploring open banking and how they can leverage it to create a more interconnected global financial ecosystem.&nbsp;

PSD2 has also raised the bar for other countries to ensure better cybersecurity standards and ensure quick processing speed for international payments. Fintech companies that have leveraged PSD2 in EEA are expanding their business to offer other countries better payment solutions with lower transactional fees.&nbsp;

Countries such as Australia, Canada, and Singapore have already introduced or are considering open banking regulations. This chain reaction may continue and expand to countries like India, launching an official directive similar to PSD2.&nbsp;

The increased adaptation of advanced open technologies such as blockchain and digital currencies may play a vital role in the future expansion of PSD2 and open banking. Such technologies, along with international banking partnerships, will play a prominent role in streamlining international payments and cross-border transactions, further transforming the financial landscape.

International payments will only rise in volume as more individuals and businesses establish their global presence. The introduction of PSD2 by the EU and the resulting push to open banking and other customer-protecting measures have positively impacted cross-border transactions and have called for the launching of similar directives in other countries.PSD2’s influence is seen in the proliferation of open banking initiatives, enhanced cybersecurity measures, and improved consumer experiences worldwide. As the financial industry continues to evolve, the principles and trends set in motion by PSD2 will shape the future of banking and payment services on a global scale.

Ans: The PSD2 directive, or Payment Services Directive 2, is a European Union regulation designed to enhance and regulate electronic payment services. It aims to promote innovation, competition, and security in the financial industry by allowing third-party access to banking data through open banking APIs.

Ans: PSD2 in open banking refers to integrating Payment Services Directive 2 into the open banking framework. It mandates banks to provide secure access to customer account information to third-party providers, fostering competition and innovation in the financial sector.

Q3. What is PSD2 regulation and what is the impact?

Ans: PSD2 regulation is a set of rules governing payment services within the European Union. Its impact includes increased security measures, open banking initiatives, and enhanced competition as third-party providers gain access to customer data, fostering innovation in the financial sector.

Q4. What is the difference between open banking and PSD2?

Ans: Open banking is a broader concept, while PSD2 is a specific regulation within the European Union. PSD2 mandates open banking practices, requiring banks to share customer data securely with third-party providers. Open banking, in a global context, encompasses various initiatives that promote similar data-sharing practices for innovation and competition.

Q5. According to the PSD2 mandate, what is the maximum number of days to refund the disputed amount?

Ans: The PSD2 mandate stipulates that in case of a disputed transaction, the maximum number of days for a refund is 15 business days from the day the payment service provider receives the complaint.

Q6. How does PSD2 and open banking affect the financial industry?

Ans: PSD2 and open banking positively impact the financial industry by fostering innovation, competition, and improved security. These regulations encourage the development of new financial services and products, driven by collaboration between traditional banks and third-party providers, ultimately benefiting consumers with more choices and enhanced user experiences.

Ans: PSD2 came into effect on January 13, 2018, within the European Union. However, individual countries may have slightly different timelines for implementing specific aspects of the directive.

Ans: Yes, PSD2 is a regulation specific to the European Union. It aims to standardise and enhance payment services within EU member states.

Ans: PSD2 has a transformative impact on banking by promoting competition, innovation, and security. Banks are required to open up their customer data to third-party providers, fostering the development of new services and ensuring enhanced security measures for electronic payments.

Ans: PSD2 applies to all European Union member states. Therefore, the PSD2 countries include those within the EU, as the regulation is designed to create a standardised framework for electronic payment services across the entire union.

PSD2 and its Impact on International Payments

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Expanding your cross-border business is a grand adventure. It is like setting sail on a voyage to build a global network of customers—a journey filled with diverse landscapes, encounters with fascinating individuals, and the thrill of discovering new horizons.

However, building a global customer network is an ambitious undertaking, and it presents a unique set of challenges, such as diversity and complexity, building trust, logistics and <a href="https://www.skydo.com/blog/mastering-compliance-a-step-by-step-guide-to-data-protection-payments-laws-and-industry-regulations-for-tech-exporters?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">compliance</a>, and market research. These factors often deter many from venturing into the international marketplace.&nbsp;

Recently, Skydo engaged in an enlightening discussion on this topic with<a href="https://www.linkedin.com/in/chinmay-chandgude/"> Chinmay Chandgude</a>, a Partner at Alpha OBS LLP Venture.&nbsp;

Let's learn how he succeeded in building a global network.



Q. How and when did you decide to transition to an export services company? What were the benefits you realised about building a global customer network?&nbsp;

Chinmay: Reflecting on our journey, we began initially by connecting with a network of talented freelancers in India. This approach allowed us to undertake website projects and provide competitive quotes, denoted as X, while subsequently outsourcing the work to these freelancers at a lower cost of 0.75x.

At that time, our company was still in its infancy, and we aimed to set our prices strategically to ensure profitability. However, our decision to venture into exports was primarily driven by a desire to reduce our dependence on Indian clients.

One compelling reason for this shift was the realisation that we could achieve higher returns for the same amount of effort invested by working with clients abroad, especially those who pay in dollars or other European currencies.&nbsp;

In practical terms, if a global client were to pay us $1,000 for a project, their expectations remained consistent with that value, meaning they anticipated $1,000 worth of work. This experience contrasts with our understanding of Indian clients, where a $1,000 project often came with expectations for work equivalent to $5,000.

This fundamental difference in client expectations made global clients an attractive prospect for us. Dealing with clients from outside India offered the potential for better compensation and a smoother and more straightforward business relationship. In essence, we pursued exports to tap into a customer base that values our work and provides fair compensation.&nbsp;

Q. How did you land your first client? What was your approach to identifying and targeting global markets?

Chinmay: Our first exciting and memorable experience was on Freelancer.com. This platform served as our initial gateway into global client's work.&nbsp;

On Freelancer.com, individuals would post their projects along with their specific requirements, and freelancers like us would submit bids based on our expertise and capabilities.&nbsp;

We landed our first client by combining some key factors. Our proposals were strong, and we communicated well with the client. Our team was always responsive to the client's needs, which helped seal the deal.

Our approach to identifying and targeting these markets involved a multi-faceted strategy.&nbsp;

We used platforms like Freelancer.com and Upwork, which offered us exposure to a diverse clientele worldwide. These platforms allowed us to showcase our skills and services, ultimately leading to engagements with clients seeking our expertise.

Additionally, we recognised the importance of building a powerful network. This exercise involved collaboration with vendors, consultants, and other industry experts who could provide valuable insights and referrals. By establishing these connections, we could tap into their existing networks, expanding our reach and enhancing our reputation.

Our team played a pivotal role in our success story. We fostered a culture of innovation, collaboration, and continuous improvement. Our dedicated and skilled professionals were instrumental in delivering high-quality work that garnered positive feedback and recommendations, helping us build credibility in global markets.

Q. How can one leverage technology to reach global customers?

Chinmay: To leverage technology to reach global customers effectively, companies must adopt a multi-faceted approach:

Combining these strategies can unlock global customer reach in today's digital age.

Q. What are the steps involved in crafting a global marketing strategy for expansion?

Chinmay: In the global marketing strategy for expansion, we've recognised that our most potent asset is our initial clients. Our journey has shown that dedicating ourselves to their projects with unwavering commitment and precision has yielded remarkable results.

In practical terms, this commitment meant not just meeting the expectations we set but consistently exceeding them. We aimed to provide seven or even eight if we promised five things. The impact of this dedication on our clients was nothing short of transformative. They experienced absolute delight with our services, which naturally increased customer retention.

Our client's satisfaction with our work was so profound that they began entrusting us with more projects, which significantly boosted customer retention rates. Moreover, they became enthusiastic advocates of our services, actively referring us to their networks, including friends and family who required similar services.

This exponential growth was primarily fueled by the potent force of word-of-mouth referrals—a strategy that became our linchpin for expansion. We continue to rely on this organic, <a href="https://www.skydo.com/blog/the-entrepreneurs-guide-to-product-market-fit?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">client-driven growth approach</a>, which has proven its effectiveness repeatedly.

Q. What are your tips for providing excellent customer support?

Chinmay: Providing excellent customer support is paramount in the IT service export industry as it's helped in customer retention. Our tips for achieving this include:

Chinmay's insights underscore the power of word-of-mouth marketing and the significance of consistently delivering on promises. By prioritising customer satisfaction and harnessing the positive feedback loop of referrals, your business can thrive in the cross-border landscape and unlock new horizons of success.

These principles remain essential for sustainable growth and building a strong, loyal customer base.

Building a Global Network of Customers for Your Cross-Border Business Th

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A gig economy is a flexible economic system where labour and resources are exchanged through digital platforms that actively connect buyers and sellers. In this type of economy, businesses engage independent contractors and freelancers instead of hiring full-time employees, as the work is temporary and doesn't follow a fixed schedule.

The gig economy yields more affordable, efficient, and adaptable services, providing consumers with a quick and distinctive alternative to traditional, standardised business models. Moreover, it operates exclusively online, making it particularly popular among the younger demographic.

While freelancing and gig work have always been part of India's work culture, their significance has skyrocketed in recent years. Thanks to technology and the rise of platform-based companies, the gig economy has taken centre stage, offering countless opportunities for freelancers nationally.

The gig economy refers to the freelancers and side-hustlers job sector. These jobs are different from the traditional employer-employee relationship. They are characterised by:

You can understand the gig economy as a free market system where freelancers and independent contractors engage in flexible projects with multiple clients.&nbsp;

The entry barriers in the gig economy are low, allowing more professionals to easily venture into freelancing. This creates a hyper-competitive business environment. Moreover, the <a href="https://www.niti.gov.in/sites/default/files/2023-06/Policy_Brief_India%27s_Booming_Gig_and_Platform_Economy_27062022.pdf">Gig Economy Report</a> by NITI Aayog suggests that the demand for professionals with medium-quality skills is decreasing, and there is an upsurge in the demand for highly skilled professionals.&nbsp;

Thus, freelancers need to learn advanced skills and stay updated with the latest industry trends to advance their careers. This blog guides you through the latest trends and factors impacting the gig economy and the future of freelancing.

Over <a href="https://www.primuspartners.in/docs/documents/The%20Rising%20GIG%20Economy%20Of%20India-09-21-06.pdf">57 million</a> people in the US are engaged in gig work whereas in India, over 15 million workers are engaged in freelance professions. In fact, the gig economy can create up to 90 million jobs in India, leading to the growth of the country's GDP by 1.25%. However, which professions are currently in demand?&nbsp;

Diversity of Freelance Professions and Industries

Freelance professions are gradually increasing across various industries. As per <a href="https://www.flexjobs.com/blog/post/hottest-freelance-job-opportunities-for-remote-work/">FlexJobs</a>, the fastest growth of freelancing jobs is in the following industries:

Other <a href="https://s3.amazonaws.com/press.freelancer.com/Freelancer%20Fast%2050%20Index%20-%20Q3%202022.pdf">freelancing jobs</a> that have witnessed a sudden spike in the latter half of 2022 are:

According to <a href="https://icrier.org/pdf/27-12-2017/Galapya_Online%20freelancing%20in%20India.pdf">LIRNEasia's survey report on freelancing</a> in India, online workers and freelancers majorly find jobs on global or local platforms, websites or applications. The most popular ones are:

Many Indian freelancers also find opportunities through local platforms like Just Dial, Sulekha and Urban Clap. Then, what does the future of freelancing look like?

"In countries like India, businesses are growing comfortable with remote freelance management consultants like our platform. It’s a significant change for the better, and will drive more freelance careers.” - <a href="https://www.forbes.com/sites/jonyounger/2020/12/16/freelancing-2021-the-trends-i-see-for-the-freelance-revolution/?sh=366c44462086">Jay Desai</a>, the CEO of Stratlancer.

1. Blurring lines between traditional employment and freelancing

The essence of the gig economy is work flexibility. However, many companies are hiring full-time freelancers, especially in the tech industry. It has both pros and cons. Freelancers have the flexibility to work and also get secured income opportunities.

On the contrary, many companies hire full-time freelancers and ask them to sign non-compete agreements, prohibiting them from engaging with other clients in the same industry. In such scenarios, freelancers perform the role of full-time employees but are deprived of employee benefits.&nbsp;

2. Rise of specialised, niche freelancers

As the freelancing landscape grows and more professionals enter into the market, the demand for niche freelancers with advanced skills will increase. Organisations are seeking specialised freelancers with a specific skill set that caters to their requirements.

For example, a digital marketing agency aims to revamp its online presence. Instead of hiring a generalist freelancer, they opt for a specialised SEO expert with a proven track record in optimising content for search engines. In this scenario, the agency recognizes the value of a niche freelancer who possesses advanced skills tailored precisely to their needs.&nbsp;

The rise of such specialised freelancers allows businesses to access expertise precisely aligned with their goals, marking a shift towards targeted, skill-specific collaborations in the freelancing landscape.

3. Gig marketplaces vs. direct client relationship

The choice between gig marketplaces and direct <a href="https://www.skydo.com/blog/networking-for-freelancers?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">client relationships</a> ultimately boils down to a freelancer's unique goals and circumstances. Gig marketplaces can offer a steady flow of projects, payment security, and a degree of convenience, but they often involve fierce competition and lower rates. On the other hand, connecting directly with clients through platforms like LinkedIn or Facebook groups may lead to higher-paying opportunities and more personal relationships.

Freelancers should carefully consider their preferences and priorities. While gig marketplaces can provide stability, the pursuit of higher-paying, direct-client relationships may be a strategic move for those who value greater autonomy and the potential for increased earnings. The choice should align with your long-term career objectives and work style.

Yet, considering the above trends, what is the future role of technology in freelancing?

1. Role of AI and automation in freelancing tasks

There is a looming fear among people that AI will replace the majority of jobs. However, <a href="https://www2.staffingindustry.com/row/Editorial/Daily-News/AI-can-t-replace-creativity-yet-Freelancer.com-CEO-says-66237">Matt Barrie</a>, CEO and founder of Australia-based Freelancer.com says, "AI cannot replace creativity".

Even though plenty of generative AI tools are entering the market, there is still a high demand for freelancers for creative jobs such as photography, user interface design, writing, and marketing.

However, freelancing jobs like data entry, typing, and transcribing that do not require skill are likely to be automated.

2. Platforms and tools enhancing freelancer-client connections

The <a href="https://www.google.com/amp/s/www.benzinga.com/amp/content/34762768">Freelance Platforms Report 2023</a> explains that the freelancer platform market size is growing exponentially. The gig economy and freelancing platforms are leveraging technologies like AI to provide better experiences to both freelancers and clients.&nbsp;

They allow freelancers to market their skills by showcasing their portfolios and ratings. Clients and freelancers can safely connect on platforms without worrying about their delayed work or payments.

3. Data security and privacy concerns for freelancers

Online freelancing platforms are beneficial for finding opportunities and offer a safe environment for freelancers to connect with global clients. Instead of directly reaching out to clients and risking data security and privacy, freelancers can connect and engage with clients through such online platforms.

Economic and Cultural Factors Affecting the Freelancing Market

Let's see the most significant economic and cultural factors that impact the freelancing landscape.

While full-time jobs offer financial stability, they often lack flexibility. Conversely, freelancing gives work flexibility but there may not be steady income, especially in the beginning. However, with the massive layoffs globally, job security and financial stability are also concerning issues for professionals. In such a scenario, a lot of people are picking flexibility over financial stability.&nbsp;

According to a <a href="https://www.ey.com/en_gl/news/2021/05/more-than-half-of-employees-globally-would-quit-their-jobs-if-not-provided-post-pandemic-flexibility-ey-survey-finds">2021 survey by EY</a>, nine out of ten individuals want work flexibility related to when and where they work. Interestingly, more than 50% of professionals are willing to quit their jobs if they do not receive work flexibility. The desire for work flexibility is acting as a freelance professions accelerator.

Employee work expectations have undergone a drastic change post-pandemic. Professionals are now looking for more health support from employers and seeking purpose and career growth. As a result, employer-employee relationship dynamics are changing. Many people are quietly quitting their jobs to get self-employed and start freelancing.

3. Freelancing as a means of pursuing passion projects

The <a href="https://www.skydo.com/blog/how-to-find-high-paying-remote-jobs?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">remote work</a> flexibility that people experienced during the pandemic has made a lot of professionals rethink their work preferences. There is a growing dislike for the regular 9-5 jobs that offer little to no flexibility.&nbsp;

According to the <a href="https://f.hubspotusercontent10.net/hubfs/7836460/GrowTal-The-State-of-Freelancing.pdf?__hstc=48019832.b452b617b34bb7f9ec0ec3736a69b2ed.1655240805926.1655240805926.1655240805926.1&amp;__hssc=48019832.1.1655240805926&amp;__hsfp=2751650140">state of freelancing survey by Opinium</a>, 65% of the freelancers felt motivated to do freelancing jobs because they were seeking flexibility to manage their own time. Further, 48% of freelancers chose freelance as a career because it allowed them to make decisions for themselves. 26% of the people started freelancing because they didn't want to go back to their full-time jobs.

Other key motivating factors that allure people to choose freelance jobs are an opportunity to pursue their passion, better compensation, and a sense of purpose.&nbsp;

Here are some tips on how to follow your passion through freelancing and fulfil your purpose.

One of the best ways to grow in freelancing professions is to build a personal brand to market your services to the target audience. <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6913621/">Research</a> suggests that personal branding is a great contemporary technique to grow your career because there is high competition among freelancers to gain visibility and secure more offers. Hence, you must master the art of personal branding to build a distinguished reputation and ultimately gain profits.

Some of the <a href="https://journals.sagepub.com/doi/10.1177/14614448221108960?icid=int.sj-full-text.citing-articles.39">self-branding strategies</a> that freelancers on Upwork use are:

You can use the strategies to grow your brand on gig work platforms.&nbsp;

Pro tip: One of the best ways to build a personal brand is to learn storytelling skills.

2. Continuous upskilling and adapting to trends

According to a <a href="https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/beyond-hiring-how-companies-are-reskilling-to-address-talent-gaps">2020 McKinsey survey,</a> 87% of the surveyed companies are either facing skill gaps or are likely to experience it in the next 3-5 years. There are two major ways organisations tackle the skills gap.&nbsp;

Since reskilling employees requires a lot of cost and resources, the majority of companies prefer to hire freelancers or gig workers. Thus, freelancers need to constantly upskill themselves with the latest industry demands to seek more clients. The following are some of the best ways for freelancers to upskill.

<a href="https://www.atlantis-press.com/article/125959764.pdf">Goffman’s dramaturgical theory</a> suggests that all humans are actors showcasing their performance and they seek to create an impression in the mind of other people. This is called the impression management motion, according to which we put on our best selves to impress others. One of the most remarkable ways for freelancers to impress others and get more clients is to create a portfolio displaying their best work.