Blog

Starting an export-import business in India might seem like a big leap, but the truth is, many successful traders began with one small shipment and a clear plan. With India’s growing position in global trade, entrepreneurs now have access to better tools, easier registration, and expanding market opportunities across continents.

Whether you want to export high-demand local goods or import specialty products not available in your area, this guide will help you lay a strong foundation — without overwhelming jargon.

Let’s walk through each step, the way a real business would begin.

Find Your Product

Everything starts with what you plan to sell (or buy). If you’re thinking of exports, ask yourself:

• What products are made locally and have global demand?
  
• Can I source this product reliably?
  
• Is it allowed under Indian trade rules?
  

For imports, you should ask:

• Is this product not available or more expensive in India?
  
• Are there any import restrictions, duties, or safety standards?
  

Some common export products from India include:

•  Spices, grains, and tea
• Handicrafts and textile
•  Leather goods
•  Engineering component
• Natural beauty products

Popular imports include:

• Electronics and gadgets
• Industrial machinery
• Raw materials
•  High-end food products

Start with something simple and manageable — maybe something you already understand well.

Register Your Business

To be taken seriously in international trade, your business needs to be properly registered. You can choose a legal structure based on your needs:

• Sole proprietorship (easiest for individuals)
  
• Partnership (ideal for small groups)
  
• LLP (a blend of partnership and company)
  
• Private Limited Company (best for scaling)
  

You’ll also need:

• GST Registration (for domestic transactions)
  
• PAN Card (in the business name)
  
• Current account (for international payments)
  

This step builds your legal foundation — helping you with tax compliance, business credibility, and financial operations.

Apply for the Import Export Code (IEC)

You can’t legally trade internationally without this. The IEC (Import Export Code) is issued by the Directorate General of Foreign Trade (DGFT).

How to apply:

• Visit https://www.dgft.gov.in
  
• Register your business
  
• Upload required documents: PAN, bank proof, address
  
• Pay the fee (approx. ₹500)
  
• Get the code (usually within 1–2 working days)
  

This 10-digit code is needed at every port, customs clearance, and payment gateway.

Choose Your Target Market

Where will your goods go? Or where are they coming from?

Spend some time studying:

• Countries with high demand for your product
  
• Import/export tariffs and restrictions
  
• Currency exchange rates
  
• Competition and local alternatives
  

For instance, Indian spices are in demand across Europe and the Middle East, while electronics from East Asia remain popular imports.

Tip: Start with countries that have Free Trade Agreements (FTAs) with India. These offer lower tariffs and faster processing.

Find Reliable Buyers and Suppliers

The heart of this business lies in strong relationships.

For Exports:

You need to connect with international buyers or distributors. Use:

• B2B portals (IndiaMART, Alibaba, GlobalSources)
  
• LinkedIn and professional trade forums
  
• Export promotion councils like FIEO, APEDA, or EEPC
  
• Virtual exhibitions and buyer-seller meets
  

For Imports:

Look for verified suppliers through trusted platforms or sourcing agents. Always request:

• Product samples
  
• Certifications
  
• References
  
• Quality assurance details
  

Begin with smaller trial shipments to test communication, product quality, and timelines before signing larger contracts.

Plan Your Logistics and Shipping

Shipping goods internationally is a detailed process — but once you do it a couple of times, it becomes manageable.

Here’s what to arrange:

• Shipping mode: Air freight (fast but costly), Sea freight (cheaper, better for bulk), or courier (small parcels)
  
• Freight forwarder or CHA (Customs House Agent): These professionals help you with documentation, port clearance, and freight booking
  
• Insurance: Protects your shipment against loss, damage, or delay
  
• Incoterms: Define who pays for freight, insurance, taxes, etc. (e.g., FOB, CIF, EXW)
  

Every product has different handling and packaging requirements. Make sure your cargo complies with international packaging standards.

Complete the Required Documents

Documents are the lifeblood of international trade. Even small mistakes can result in delays, penalties, or rejection at customs.

Here’s what you usually need:

• Commercial invoice
  
• Packing list
  
• Bill of Lading (for sea) or Airway Bill (for air)
  
• Certificate of origin (proves where the product comes from)
  
• Insurance certificate
  
• Import/export licenses (if needed)
  
• Buyer-seller contract
  
• GST documents (for refunds/claims)
  

Store all documents securely and consider using cloud storage for easier sharing and backups.

Secure Your Payment the Right Way

You’ve shipped your goods. How do you make sure you get paid?

Here are your options:

• Advance Payment – Best for sellers. Payment before shipping.
  
• Letter of Credit (LC) – Bank guarantees payment once conditions are met. Secure but requires paperwork.
  
• Documents Against Payment (D/P) – Buyer receives documents after paying the bank.
  
• Open Account – Payment after delivery (only use with trusted buyers).
  

Use banks with experience in handling foreign trade transactions and always work with signed contracts.

Start Small, Then Grow

Don’t go all-in from the start. Begin with a pilot shipment to understand:

• How smooth is the customs process?
  
• Are there any unexpected fees or delays?
  
• Is your packaging strong enough?
  
• Did the product arrive in good condition?
  

You’ll learn a lot in the first few orders — about timing, costs, and communication. Use this learning to build better systems, find trusted partners, and improve margins.

Use Tools to Stay Organized

Modern exporters and importers rely on digital tools to manage operations. Try:

• Inventory software – So you never run out of stock
  
• Accounting tools – To manage GST, payments, and invoices
  
• CRM systems – To track buyer conversations and deals
  
• Shipping trackers – To follow real-time delivery progress
  
• Secure payment gateways – For fast and safe transactions
  

Small investments in software save hours of manual work and reduce errors.

Final Thoughts

Starting an export-import business in India doesn’t need massive capital or a big team. What you really need is a clear plan, a strong work ethic, and a willingness to learn from experience.

You’ll face a few speed bumps in the beginning — that’s normal. But once you build a system and stick to reliable partners, the opportunities are endless. Indian products are in demand all over the world. And global markets are waiting to send their best goods here too.

So, take that first step — register your business, pick your product, and begin your trade journey.