How to Start Exporting from India: Beginner's Complete Guide

Why Export from India?

India is one of the world's fastest-growing export economies, with total merchandise exports exceeding $450 billion annually. The government actively encourages exports through various incentive schemes, making it an excellent time to start an export business.

Key export sectors from India:

• IT and software services
• Pharmaceuticals and healthcare
• Textiles and garments
• Chemicals and petrochemicals
• Agricultural products (rice, spices, tea)
• Gems and jewelry
• Automotive parts
• Engineering goods
• Leather products
• Handicrafts

Benefits of exporting:

• Access to larger global markets
• Higher profit margins in foreign currency
• Government incentives and tax benefits
• Diversification of revenue streams
• Enhanced brand reputation

Step 1: Get Your Import Export Code (IEC)

The IEC is a mandatory 10-digit code issued by DGFT that allows you to export from India. Without it, no customs clearance is possible.

How to apply:

• Visit dgft.gov.in and register
• Fill online application form ANF-2A
• Upload required documents:
• PAN card of the business/proprietor
• Aadhaar card
• Cancelled cheque or bank certificate
• Passport-size photograph
• Address proof of business premises
• Pay Rs 500 application fee online
• IEC is typically issued within 1-2 working days

Important notes:

• IEC is valid for lifetime (no renewal needed)
• One entity can have only one IEC
• Must be updated on DGFT portal annually (even if no changes)
• Service exporters also need IEC

Step 2: Choose Your Product and Market

Product Selection

Choose products where India has a competitive advantage:

• Research export data on DGCIS (Directorate General of Commercial Intelligence and Statistics)
• Check product-wise export trends on the Commerce Ministry website
• Identify products with growing global demand
• Consider your industry expertise and supplier network

Market Research

• Use ITC Trade Map (trademap.org) for global trade statistics
• Study target country's import regulations and tariff rates
• Analyze competition from other exporting countries
• Understand cultural preferences and packaging requirements
• Check for any trade agreements that provide duty benefits

Resources for Market Research

• Export Promotion Councils (EPCs) for your product category
• Indian Trade Promotion Organisation (ITPO)
• Federation of Indian Export Organisations (FIEO)
• Indian embassies and trade missions abroad
• Alibaba, Amazon Global Selling, and other platforms for demand trends

Step 3: Register with Export Promotion Council

Each product category has a designated EPC. Registration provides:

• RCMC (Registration Cum Membership Certificate) - required for many export incentives
• Market intelligence and trade leads
• Participation in international trade fairs
• Networking with other exporters
• Government scheme benefits

Major EPCs in India:

• FIEO (Federation of Indian Export Organisations)
• AEPC (Apparel Export Promotion Council)
• Chemexcil (Basic Chemicals, Cosmetics & Dyes EPC)
• EEPC India (Engineering Export Promotion Council)
• Pharmexcil (Pharmaceuticals Export Promotion Council)
• APEDA (Agricultural and Processed Food Products Export Development Authority)

Step 4: Find International Buyers

B2B Platforms

• Alibaba.com - Create a supplier profile and respond to buyer inquiries
• IndiaMART - Strong for Indian suppliers, growing international presence
• TradeIndia - Popular platform for Indian exporters
• Amazon Global Selling - Sell directly to consumers worldwide
• Global Sources - Strong in electronics and consumer products

Trade Fairs and Exhibitions

• India International Trade Fair (IITF) - New Delhi, November
• Canton Fair - Guangzhou, China (meet international buyers)
• Ambiente - Frankfurt (home and consumer goods)
• MAGIC - Las Vegas (fashion and apparel)
• Gulfood - Dubai (food and beverage)

Other Channels

• LinkedIn networking and direct outreach
• Indian embassy trade events abroad
• Export Promotion Council trade delegations
• Government e-Marketplace (GeM) for defense and public sector exports
• Direct cold outreach to potential importers

Step 5: Understand Export Documentation

Pre-Shipment Documents

• Proforma Invoice - Quotation to the buyer with product details, price, and terms
• Purchase Order / Sales Contract - Confirmed order from the buyer
• Letter of Credit (LC) - Payment guarantee from buyer's bank (most secure for exporters)

Shipping Documents

• Commercial Invoice - Final invoice with complete details for customs
• Packing List - Detailed list of contents, weights, dimensions
• Shipping Bill - Primary export customs document (filed on ICEGATE)
• Bill of Lading (sea) / Air Waybill (air) - Transport document from carrier
• Certificate of Origin - Issued by Chamber of Commerce or DGFT (for preferential tariffs)
• Insurance Certificate - Cargo insurance documentation
• Inspection Certificate - If required by buyer or buyer's country regulations

Post-Shipment Documents

• Bank Realization Certificate (BRC) - Proof of receipt of export payment
• Shipping Bill with LEO - Proof of export for incentive claims

Step 6: Pricing Your Export Product

Key Considerations

• Raw material and manufacturing cost
• Packaging cost (export-grade packaging is more expensive)
• Inland transportation to port
• Freight charges (depends on Incoterm agreed)
• Insurance
• Documentation and customs charges
• Agent/commission costs
• Profit margin
• Currency exchange rate fluctuations

Pricing Based on Incoterms

• EXW Price = Product cost + packaging + profit margin
• FOB Price = EXW + inland transport + export clearance + port charges
• CIF Price = FOB + ocean/air freight + insurance
• DDP Price = CIF + import duties + destination charges + delivery

Step 7: Payment Methods

Letter of Credit (LC)

• Most secure for exporters
• Bank guarantees payment upon presentation of compliant documents
• Types: Irrevocable, Confirmed, At Sight, Usance
• Cost: 1-3% of transaction value

Documents Against Payment (D/P)

• Documents released to buyer only after payment
• Less secure than LC but lower cost
• Good for established buyer relationships

Documents Against Acceptance (D/A)

• Documents released against buyer's acceptance of a bill of exchange
• Payment on a future date (30/60/90 days)
• Higher risk for exporter

Advance Payment (T/T)

• Full or partial payment before shipment
• Most favorable for exporter
• Buyer may resist unless trust is established

Open Account

• Payment after delivery (30/60/90 days)
• Highest risk for exporter
• Common in established long-term relationships

Step 8: Customs and Shipping

Filing Shipping Bill

• Your customs broker files the Shipping Bill electronically on ICEGATE
• Details include: product description, HS code, quantity, FOB value, buyer details, port of destination

Customs Examination

• Goods may be examined by customs before loading
• Ensure actual goods match the Shipping Bill description

Let Export Order (LEO)

• Customs officer grants LEO after verification
• Goods can now be loaded onto the vessel/aircraft

Cargo Loading

• Goods are loaded and Bill of Lading/AWB is issued
• Shipping line/airline provides a copy of the transport document

Step 9: Government Export Incentives

RoDTEP (Remission of Duties and Taxes on Exported Products)

• Rebate of embedded central, state, and local taxes not refunded through other schemes
• Rates: 0.5% to 4.3% of FOB value depending on product
• Credited as duty credit in ICEGATE account

Duty Drawback

• Refund of customs duties paid on imported inputs used in exported goods
• Brand rate or all-industry rate available
• Claimed through customs at the time of export

Advance Authorisation

• Duty-free import of inputs used in export production
• Must export within 18 months
• Significant savings on customs duty for inputs

EPCG Scheme (Export Promotion Capital Goods)

• Import capital goods at zero customs duty
• Export obligation: 6 times the duty saved over 6 years
• Great for manufacturers investing in export capacity

Export Credit

• Banks offer export credit at lower interest rates (pre-shipment and post-shipment)
• ECGC (Export Credit Guarantee Corporation) provides insurance against buyer default

Step 10: Quality and Compliance

Product Standards

• Ensure products meet destination country's standards and regulations
• Common certifications: ISO, CE (Europe), FDA (USA), FSSAI (food)
• Get products tested and certified before shipping

Packaging Standards

• ISPM-15 compliance for wooden packaging (heat treatment or fumigation)
• Country-specific labeling requirements
• Bar codes and product marking as per buyer requirements
• Adequate packaging for long sea voyages (moisture, vibration protection)

Common Mistakes First-Time Exporters Make

1. 1Not verifying buyer credentials - Always check buyer's business registration, financial stability, and trade references before shipping
2. 2Wrong HS code classification - Incorrect codes lead to wrong duty calculations and possible penalties at destination
3. 3Ignoring packaging standards - Damaged goods mean returns, insurance claims, and lost business
4. 4Not insuring the shipment - Marine insurance is crucial. A lost container means total financial loss without it
5. 5Payment terms without LC - For new buyers, always insist on LC or advance payment
6. 6Underestimating compliance requirements - Each country has specific import regulations, certifications, and labeling requirements
7. 7Not using a freight forwarder - Trying to handle shipping yourself as a beginner leads to costly mistakes
8. 8Ignoring currency hedging - Exchange rate fluctuations can wipe out profit margins
9. 9Missing export incentive claims - Many exporters leave money on the table by not claiming RoDTEP, drawback, or other benefits
10. 10Poor communication with buyers - Regular updates on order status, shipping details, and documentation build trust and repeat business

Conclusion

Exporting from India is a rewarding venture with enormous potential. The government provides substantial incentives, and India's manufacturing and agricultural base offers globally competitive products. The key is proper planning, compliance with regulations, choosing the right markets and buyers, and working with a reliable logistics partner.

Start small, learn the process with your first few shipments, and scale gradually. A good freight forwarder will guide you through the entire process and handle the logistics complexities so you can focus on growing your business.

Ready to start exporting? Universe Logistic Solution provides end-to-end export logistics support - from documentation to delivery. Contact us for a free consultation and let us help you take your products global.