Introduction
Exporting from India is not just about selling products overseas; it’s about entering the global marketplace with confidence. Whether you’re planning to export handicrafts, textiles, or industrial goods, having the right knowledge, documentation, and process in place is key to success. In this guide, we’ll walk you through the essential steps to start your export business smoothly and professionally.
What is Import-Export Business?
The import-export business involves buying goods from one country and selling them in another. It connects Indian manufacturers or suppliers with global buyers — opening doors to international markets and long-term trade opportunities’
Why is Import-Export Business Worth It?
Global Reach – Tap into international demand across countries
High Profit Margins – Earn in foreign currency and scale your income
Government Support – Enjoy export incentives, GST refunds, and other schemes
Who Should Start an Import-Export Business?
Best Suited For
People who have quality products like handicrafts, textiles, or FMCG items
Those willing to follow documentation, rules, and export procedures
Not Recommended For
Anyone looking for quick money without effort or strategy
Those who dislike paperwork, planning, or long-term commitment
Step 1: Get Your Import Export Code (IEC)
The Import Export Code (IEC) is your gateway to international trade. Issued by the Directorate General of Foreign Trade (DGFT), this code is mandatory for anyone who wants to export from India.
You can apply for the IEC online at https://dgft.gov.in. Without this code, no legal export transaction can be carried out.
Step 2: Register Your Business and Obtain GST Number
Before you start shipping products globally, make sure your business is legally registered. You can choose from structures like Proprietorship, Partnership, LLP, or Private Limited Company b ased on your scale and plans.
Along with business registration, obtaining a GST number is essential. Even though exports are zero-rated under GST, the GSTIN is required for issuing invoices and claiming refunds.
Step 3: Open a Current Account with SWIFT Support
To receive international payments, you’ll need a business current account that supports foreign currency transactions and includes a SWIFT code. This will allow smooth inward remittances from international buyers.
Step 4: Choose the Right Product for Export
Selecting the right product is the foundation of your export success. Pick something that is
- In demand globally
- Easily available or manufacturable
- Legally allowed for export from India
- Popular export categories from India include: brass handicrafts, wooden decor, carpets, textiles, and spices.
Step 5: Study International Markets
Research plays a big role in identifying where your products will sell best. Study the demand, competition, pricing, and import regulations of potential countries.
Use tools like Google Trends, Export Promotion Council reports, and international trade portals to evaluate your opportunities.
Step 6: Register with Export Promotion Councils
Joining a relevant Export Promotion Council (EPC) can offer you industry-specific support, access to trade fairs, and eligibility for government export incentives.
For example:
- EPCH – for handicrafts
- CEPC – for carpets
- TEXPROCIL – for textiles
- CLE – for leather goods
Being part of these councils adds credibility to your business and opens doors to new buyers.
Step 7: Understand Key Export Documents
Exporting requires several important documents. While the exact paperwork may vary depending on your product and destination, the most common documents include
Commercial Invoice
Packing List
- Bill of Lading or Airway Bill
- Shipping Bill (filed through ICEGATE)
- Certificate of Origin
- Insurance (if applicable)
Accurate documentation ensures smooth customs clearance and payment processing.
Step 8: Work with a Reliable Freight Forwarder
Shipping your goods internationally requires a trusted logistics partner or freight forwarder. They will help you with
- Booking sea or air cargo
- Customs clearance
- Packaging and labeling compliance
- Tracking and insurance
For delicate products like handicrafts, using bubble wrap, corrugated boxes, and wooden crates helps prevent breakage.
Step 9: Explore Export Finance Options
Financing is often needed at two stages
before and after shipment.
- Pre-shipment finance is used to buy raw materials and produce the goods.
- Post-shipment finance provides credit against the invoice once the goods are shipped.
Banks also offer interest subvention schemes for eligible MSME exporters to reduce borrowing costs.
Step 10: Use Secure Payment Methods
Choosing the right payment method is essential for your safety and the buyer’s trust. Common export payment methods include:
- Advance Payment – Most secure for the exporter, but not preferred by all buyers.
- Letter of Credit (LC) – A bank-backed agreement ensuring payment upon document verification.
- Documents Against Payment (D/P) – Buyer makes payment after reviewing shipping documents.
The choice depends on your relationship with the buyer and the size of the transaction.
Step 11: Use Key Government Platforms
These official platforms are useful for exporters:
- DGFT Portal – For IEC, authorizations, and policy info
- ICEGATE – For customs and shipping bill filing
- EPCH, CEPC – For trade events, schemes, and support
- ECGC – For export credit insurance
- RBI – For forex regulations
Using the right platforms saves time and ensures compliance.
Step 12: Packaging, Shipping & Labeling
Proper packaging and labeling are critical in international trade. Here’s how to do it right:
Packaging Types:
Wooden crates (for heavy/fragile goods), corrugated boxes (for soft goods), shrink wraps + foam (for protection)
Shipping Methods:
Air Freight – Fast, for urgent or small shipments
Sea Freight – Economical for bulk orders
Courier Services – Ideal for samples or documents
Labeling Must Include:
Product name, quantity, “Made in India” label, HS Code, weight, and handling symbols like “Fragile” or “Keep Dry”.
Also choose between FCL (Full Container Load) and LCL (Less than Container Load) based on your shipment volume.
Real-Life Example: Handicraft Export
Suppose you’re exporting 500 brass idols to Germany. Here’s how the process may look:
Products are carefully packed in cartons, then sealed in a wooden crate.
Shipment is booked as an LCL through a freight forwarder.
Required documents are filed on ICEGATE.
Buyer receives original documents and pays via LC.
A small shipment like this, when done right, can lead to repeated global orders.
Conclusion
Starting an export business from India may seem complex at first, but with the right steps, legal compliance, and trusted partners, it becomes a smooth and profitable journey. Focus on building product quality, staying updated on regulations, and protecting your payments.