India is emerging as a global export powerhouse, supported by its vast industrial base, strategic geographic location, and an expanding digital trade ecosystem. From pharmaceuticals to textiles, electronics to agro-commodities, Indian products are reaching over 200 countries.
Importance of Exporting for Indian Businesses
- Diversifies revenue streams
- Builds brand credibility internationally
- Boosts production and employment
- Leverages government incentives
Getting Started with Exporting from India
Understanding the Export Business Model
- B2B or B2C export?
- Manufacturer exporter vs. merchant exporter
- Direct vs. indirect export
Market Research and Product Selection
- Use tools like ITC Trade Map, India Trade Portal, ACCIO
- Identify high-demand products
- Study competitor pricing and compliance requirements
Identifying Target Markets and Buyers
- Consider FTAs (Free Trade Agreements)
- Attend virtual trade shows
- Use platforms like Alibaba.com, IndiaMART, and Amazon Global Selling
Legal and Regulatory Requirements
Registering Your Business
- Choose legal structure (Sole Proprietorship, LLP, Pvt. Ltd.)
- Register with the Ministry of Corporate Affairs (MCA)
Obtaining Importer Exporter Code (IEC)
- Apply through the DGFT portal
- Required for customs clearance and foreign remittances
Understanding GST and Taxation for Exporters
- Exports are zero-rated under GST
- Claim input tax credit or refund
Acquiring Necessary Licenses and Certifications
- FSSAI, APEDA, and DGFT licenses based on product type
- BIS for quality assurance
Product Preparation and Compliance
Product Quality Standards and Certifications
- Adhere to global standards (CE, FDA, GOTS, etc.)
- Perform lab testing if required
Packaging and Labeling Requirements
- Durable, eco-friendly packaging
- Language and barcode as per the importing country norms
Understanding Export Restrictions and Prohibited Items
- Check DGFT’s ITC-HS classification
- Ensure products aren’t on restricted/prohibited lists
Export Documentation
Document | Purpose |
Commercial Invoice | Price declaration |
Packing List | Product details |
Shipping Bill | Customs clearance |
Bill of Lading/Airway Bill | Proof of shipment |
Certificate of Origin | Preferential tariff proof |
Insurance Certificate | Proof of coverage |
Inspection Certificate | Quality assurance |
Export Declaration Form | Export compliance |
Understanding Incoterms (International Commercial Terms)
What Are Incoterms?
Incoterms are standardized trade terms published by the International Chamber of Commerce (ICC) that define buyer-seller responsibilities in cross-border trade.
Common Incoterms Explained
Incoterm | Responsibility (Buyer vs Seller) | Use Case |
EXW (Ex Works) | Buyer bears most costs | Used when the buyer arranges shipping |
FOB (Free On Board) | Seller delivers to the port | Common in sea freight |
CIF (Cost, Insurance, Freight) | Seller pays till the destination port | Safer for new buyers |
DDP (Delivered Duty Paid) | The seller handles everything | Best for experienced exporters |
Choosing the Right Incoterms
- Depends on product type, destination, buyer’s preference, and logistics capacity.
Payment Terms and Methods
Standard Payment Methods in Export Trade
Payment Method | Risk to Exporter | Description |
Advance Payment | Low | Buyer pays upfront |
Letter of Credit (LC) | Low | Bank-guaranteed payment |
Documents Against Payment (D/P) | Medium | Buyer pays to receive documents |
Documents Against Acceptance (D/A) | High | Payment after a set credit period |
Open Account | Very High | Payment after delivery |
Risk Management Tips
- Use credit insurance for Open Account deals
- Hedge forex fluctuations
- Evaluate buyer creditworthiness
Shipping and Logistics
Selecting the Right Mode of Transport
- Air: Fast but expensive
- Sea: Economical for bulk
- Land: Best for neighboring countries
Choosing Reliable Freight Forwarders
- Registered with FIATA or IATA
- Provide end-to-end tracking
Customs Clearance Procedures
- File shipping bill via ICEGATE
- Ensure all documents are ready
- Pay duties if applicable
Tracking Shipments and Managing Delays
- Use tracking systems like AIS, Maersk, and DHL portals
- Maintain constant communication with logistics partners
Insurance and Risk Management
Importance of Cargo Insurance
- Protects against theft, damage, or loss
- Mandatory for certain Incoterms like CIF
Types of Insurance Coverage
- Basic coverage (named perils)
- All-risk coverage
Handling Claims and Disputes
- Document everything
- File claims promptly with the insurer
Post-Shipment Procedures
Follow-Up with Buyers
- Send dispatch details and invoice copies
- Confirm receipt of goods
Handling Returns and Rejections
- Resolve through negotiation or legal recourse
- Use inspection certificates as a safeguard
Managing After-Sales Service
- Offer spare parts, manuals, virtual support
Building Long-Term Relationships
- Regular check-ins
- Offer incentives on repeat orders
Leveraging Government Schemes and Incentives
Scheme | Benefit |
EPCG (Export Promotion Capital Goods) | Import machinery duty-free |
MEIS (Merchandise Exports from India Scheme)* | Incentives based on product and market |
SEIS (Service Exports from India Scheme)* | For service providers exporting globally |
RoDTEP | Rebate on taxes/duties not refunded under GST |
Duty Drawback Scheme | Refund of customs/excise duties |
*Note: MEIS/SEIS are being phased out in favor of RoDTEP and RoSCTL.
Digital Tools and Resources for Exporters
- Export Management Software: EximLabs, GoExport
- B2B Platforms: Alibaba.com (with Trade Vista support), Global Sources
- Market Intelligence Tools: Trade Map, India Export Data
- Government Portals: DGFT, ICEGATE, Invest India
Common Challenges and How to Overcome Them
Challenge | Solution |
Regulatory changes | Stay updated via DGFT circulars |
Payment defaults | Use LCs and ECGC credit insurance |
Logistics disruptions | Diversify carriers, plan backups |
Competition | Focus on branding, niche markets |
Key Steps in the Export Journey
- Start with research and compliance
- Master documentation, Incoterms, and payments
- Partner with logistics experts
- Leverage digital tools and government support
India’s global trade footprint is expanding rapidly—don’t miss the opportunity. Whether an MSME or an ambitious startup, the world is your marketplace.
FAQs on Export
1. How do I obtain an Importer Exporter Code (IEC) in India?
To export from India, you must obtain an IEC. You can apply online through the DGFT portal. The process involves submitting necessary documents, including PAN, bank details, and business address proof. Once approved, the IEC is issued electronically.
2. What are the essential documents required for exporting from India?
Key documents include:
- Commercial Invoice
- Packing List
- Shipping Bill or Bill of Export
- Bill of Lading or Airway Bill
- Certificate of Origin
- Insurance Certificate
- Inspection Certificate (if required)
- Export Declaration Forms
These documents facilitate customs clearance and ensure compliance with international trade regulations.
3. How are exports treated under India’s Goods and Services Tax (GST)?
Exports are considered “zero-rated” under GST, meaning:
- No GST is charged on export supplies.
- Exporters can claim a refund of input tax credit (ITC) on inputs used in producing exported goods.
This mechanism ensures that exports remain tax-free, promoting competitiveness in global markets.
4. What are Incoterms, and why are they essential in international trade?
Incoterms (International Commercial Terms) are standardized trade terms published by the International Chamber of Commerce (ICC). They define the responsibilities of buyers and sellers regarding the delivery of goods, including who bears the cost and risk at various stages of the shipment.
Common Incoterms include:
- EXW (Ex Works)
- FOB (Free On Board)
- CIF (Cost, Insurance, and Freight)
- DDP (Delivered Duty Paid)
Understanding Incoterms is crucial for clear contractual agreements and risk management.
5. What are the standard payment methods used in international trade?
Exporters typically use the following payment methods:
- Advance Payment: Buyer pays before shipment.
- Letter of Credit (LC): A bank guarantees payment upon fulfilling specified conditions.
- Documents Against Payment (D/P): Documents are released to the buyer upon payment.
- Documents Against Acceptance (D/A): Documents are released against the buyer’s acceptance of a bill of exchange.
- Open Account: Goods are shipped and delivered before payment is due.
Each method carries varying levels of risk and trust between trading partners.
6. How do I identify potential buyers in international markets?
To find buyers:
- Participate in international trade fairs and exhibitions.
- Utilize online B2B marketplaces like Alibaba.com, IndiaMART, and Global Sources.
- Engage with export promotion councils and trade associations.
- Leverage government resources such as the Indian Trade Portal.
Building a robust network and conducting market research are key to identifying and connecting with potential buyers.
7. What are the steps involved in the export process from India?
The export process typically involves:
- Establishing a business entity
- Obtaining an IEC
- Product selection and market research
- Compliance with product standards and certifications
- Finalizing trade terms and agreements
- Arranging logistics and shipping
- Customs clearance and documentation
- Receiving payment and post-shipment follow-up.
Each step requires careful planning and adherence to regulatory requirements.
8. Are there government incentives available for Indian exporters?
Yes, the Indian government offers various schemes to promote exports, such as:
- Export Promotion Capital Goods (EPCG) Scheme
- Remission of Duties and Taxes on Exported Products (RoDTEP)
- Duty Drawback Scheme
- Interest Equalization Scheme
These incentives aim to reduce the cost burden on exporters and enhance global competitiveness.
9. How do I ensure compliance with international quality standards?
To comply with international standards:
- Obtain relevant certifications (e.g., ISO, CE, FDA) based on product requirements.
- Adhere to quality control measures and testing protocols.
- Stay updated with the regulatory standards of target markets.
- Engage with quality assurance consultants or agencies for guidance.
Maintaining high-quality standards is essential for building trust with international buyers.
10. What are the common challenges Indian exporters face, and how can they be mitigated?
Common challenges include:
- Regulatory compliance: Stay informed about international trade laws and standards.
- Logistics and supply chain issues: Partner with reliable logistics providers and plan for contingencies.
- Payment risks: Use secure payment methods and consider credit insurance.
- Market competition: Differentiate products through quality, innovation, and branding.
Proactive planning and leveraging government support can help mitigate these challenges.
