How to Export Goods from India – Steps & Process

Overview: Exporting from India – An Introduction

India has rapidly emerged as a global export hub, driven by its diverse manufacturing base, expanding MSME ecosystem, and proactive trade policies. Exporting goods from India offers immense growth potential for individuals, businesses, and start-ups looking to tap into global demand.

Importance of Exports to India’s Economy

Exports are a key engine of India’s GDP, contributing over 20% of the national output as per Ministry of Commerce reports. They boost employment, foreign exchange reserves, and industrial output across sectors like textiles, pharmaceuticals, electronics, and agri-products.

• India exported goods worth USD 437 billion in FY 2023-24 (as per DGCI&S).
• Sectors such as engineering goods, petroleum, gems & jewellery, and organic chemicals lead the charge.
• Export growth enhances India’s global trade presence and reduces current account deficit.
  

Growth of MSME and Startup Exports

India’s MSMEs contribute nearly 45% to the country’s overall exports. With digital platforms and global B2B access, even small-scale exporters are reaching new markets.

• Startups recognized by DPIIT are leveraging government incentives and simplified compliance to export SaaS, D2C products, and niche innovations.
• Sectors such as handicrafts, organic food, apparel, and health-tech are gaining traction globally.
  

Role of FTAs, DGFT, and AEO in Boosting Exports

India has signed over 13 Free Trade Agreements (FTAs) with countries including UAE, ASEAN, Japan, and Australia. These agreements lower import duties for buyers and make Indian goods more competitive.

• DGFT (Directorate General of Foreign Trade) is the key regulatory body overseeing licensing, IEC registration, and export policies under India’s Foreign Trade Policy (FTP).
• AEO (Authorized Economic Operator) status is offered to compliant exporters, enabling:
  
  • Faster customs clearance
    
  • Reduced inspections
    
  • Mutual recognition with trading partners under MRAs
    

Who Can Export from India?

Anyone with a valid Importer Exporter Code (IEC) can become an exporter from India. This includes:

• Individuals or sole proprietors
• MSMEs and small businesses
• Private Limited and LLP firms
• Public companies and partnership firms
• Startups recognized under DPIIT
  

No minimum turnover threshold is required to begin exports. Even first-time exporters can ship products globally after IEC registration.

Legal and Procedural Framework for Exporting from India

The export process in India is governed by:

• Foreign Trade Policy issued by DGFT
• FEMA (Foreign Exchange Management Act) for forex compliance
• Customs Act and GST laws for classification, valuation, and tax treatment
• Product-specific regulations from bodies like FSSAI, BIS, and APEDA
  

Exporters must also comply with documentation standards, licensing requirements (where applicable), and Rules of Origin (RoO) under FTAs.

Step-by-Step Process to Export Goods from India (2025)

Exporting from India involves a clear procedural framework that every new exporter must follow. From setting up a business to managing logistics, here’s a complete breakdown of how to start and scale your export business in India.

1. Set Up Your Export Business

Before you can start shipping products abroad, you need to legally establish your business.

Choose a Business Structure

• Sole Proprietorship
• Partnership Firm
• Private Limited Company
• LLP or Public Limited Company
  

Choose a structure that supports international transactions and banking ease.

Obtain a PAN and Open a Current Account

• PAN is mandatory for tax and regulatory compliance.
• Open a current account with a bank authorized to handle foreign exchange.
  

Register on DGFT Portal

• Head to https://www.dgft.gov.in to register your business as an exporter.
• This is essential for tracking IEC and benefits under India’s Foreign Trade Policy.
  

2. Apply for IEC (Importer Exporter Code)

IEC is the gateway to international trade in India.

Why IEC is Mandatory

• Required to clear customs, receive foreign currency, and access shipping documentation.
• No exports can take place without a valid IEC.
  

IEC Registration Process

1. Visit the DGFT portal
2. Log in using Aadhaar or DSC
3. Fill in business details, upload documents (PAN, bank certificate)
4. Pay ₹500 application fee
5. Receive IEC digitally
   

Validity & Cost

• Valid for a lifetime unless surrendered or cancelled
• No renewal required
  

3. Register with Export Promotion Councils (EPCs)

EPCs help exporters connect with buyers and claim incentives.

Major EPCs in India:

• APEDA – Agri and processed food
• EEPC – Engineering goods
• FIEO – All goods and services
  

Benefits of RCMC (Registration-Cum-Membership Certificate)

• Mandatory to claim benefits under RoDTEP, MEIS, or Advance Authorization schemes
• Helps in participating in international trade fairs and buyer-seller meets
  

4. Select Product and Target Market

Product and market selection is critical to building a sustainable export strategy.

Use HS Code for Product Identification

• HS Code (Harmonized System Code) classifies goods for international trade.
• Required for customs clearance and export documentation.
  

Research Target Markets

Use these tools:

• Indian Trade Portal – Check tariffs, NTMs, CoO requirements
• ITC Trade Map – Analyze export demand
• DGFT Market Access Initiatives
  

Pro Tip: Focus on FTA partner countries to leverage zero or reduced import duties.

5. Understand Export Compliance & Regulations

Every product must meet specific standards in both India and the importing country.

Product-Specific Compliance

• FSSAI for food
• BIS for electronics
• Drug Controller for pharmaceuticals
  

Packaging, Labeling & Marking

• Must comply with international regulations and buyer specs
• Includes HS code, weight, manufacturing date, expiry, barcode, etc.
  

Pre-shipment Inspections

Mandatory for certain categories like steel, chemicals, or as per buyer requirements.

Sample Export Compliance Checklist

Product Category	Regulator	Compliance Required
Packaged Food	FSSAI	License, shelf life, nutritional info
Medical Devices	CDSCO	Registration, labeling, CE mark
Electronics	BIS	ISI marking, RoHS, packaging specs

6. Find Buyers & Secure Orders

To grow your export business, you need to build a pipeline of overseas buyers.

Where to Find Buyers

• Online B2B platforms: Alibaba, IndiaMART, Global Sources
• Trade fairs and buyer-seller meets organized by EPCs
• Indian embassies and commercial wings abroad
  

Secure Contracts with Clear Terms

• Include details on Incoterms (FOB, CIF, etc.), delivery timelines, and penalties.
• Ensure clarity on payment method, dispute resolution, and quality specs.
  

7. Finalize Payment Terms & Currency Risk

Managing payments and forex risk is key to a successful export business.

Popular Payment Methods:

• Advance Payment
• Letter of Credit (LC) – Safer, bank-to-bank assurance
• Documents Against Payment (D/P) or Acceptance (D/A)
• Open Account (for trusted partners)
  

Risk Mitigation Tools

• EXIM Bank financing
• ECGC (Export Credit Guarantee Corporation) protection against default
  

8. Packaging, Labeling & Insurance

Professional presentation and risk coverage matter in global trade.

Export-Compliant Packaging

• Moisture-proof, stackable, tamper-resistant
• Must comply with ISPM-15 (for wooden packaging)
  

Labeling Standards

• Language of destination country
• Product specs, origin, and handling instructions
  

Marine Cargo Insurance

• Protects against damage or loss during transit
• Cover options: Institute Cargo Clauses (A/B/C)
  

9. Customs Clearance & Export Documentation

Every export consignment must be cleared through Indian Customs with the right documents.

Export Documentation Checklist:

• Commercial Invoice
• Packing List
• Shipping Bill (via ICEGATE)
• Bill of Lading / Airway Bill
• Certificate of Origin (CoO)
• Insurance Certificate
• Export Declaration Form (EDF)
  

Filing Process

• Use ICEGATE for e-filing
• Or appoint a CHA (Customs House Agent) for handling formalities
  

10. Logistics, Shipping & Freight Forwarding

Efficient logistics ensure timely delivery and satisfied buyers.

Choose the Right Mode of Transport

Mode	Best For	Speed	Cost
Sea	Heavy bulk goods	Slow	Low
Air	Perishables, urgent goods	Fast	High
Courier	Samples, documents	Fast	Moderate
Land	Cross-border SAARC trade	Varies	Moderate

Freight Forwarders & CHAs

• Handle booking, loading, and port documentation
• Negotiate competitive freight rates
• Coordinate with shipping lines or airlines
  

Export Incentives and Schemes for Indian Exporters (2025)

To make Indian goods globally competitive, the Government of India offers a range of export incentives and subsidy schemes aimed at reducing costs, improving liquidity, and encouraging investment in export infrastructure. Here’s an overview of the top export benefit schemes available in 2025.

Key Government Schemes for Exporters in India (2025)

Scheme	Benefit	Eligibility
RoDTEP (Remission of Duties and Taxes on Exported Products)	Refund of embedded taxes & duties not refunded under any other scheme	All goods exporters (including MSMEs)
Advance Authorization Scheme	Import inputs without paying customs duties	Manufacturer exporters with physical exports
EPCG (Export Promotion Capital Goods)	Duty-free import of capital goods for production	Service and manufacturing exporters with minimum export obligations
Interest Equalisation Scheme (IES)	Interest subvention of 2–3% on pre- and post-shipment credit	MSME and selected sectors (engineering, pharma, etc.)

View more here – India’s Key Trade Schemes: A Quick Guide for Exporters & Importers

How AEO Status Helps Exporters in India

The Authorized Economic Operator (AEO) program is a flagship trade facilitation initiative by the Central Board of Indirect Taxes and Customs (CBIC). It grants certified exporters a range of benefits that improve efficiency and competitiveness in global trade.

Faster Customs Clearance and Reduced Inspections

AEO-certified exporters enjoy:

• Green channel clearance at ports
• Reduced examination of goods (both at export and import stages)
• Direct port delivery (DPD) and direct port entry (DPE) for faster logistics
  

This significantly cuts down time at ports and speeds up shipment cycles.

Lower Transaction Costs and Priority Handling

AEO status minimizes:

• Detention and demurrage costs
• Delays in clearance
• Documentation hassles
  

Exporters also receive priority processing of shipping bills, refund claims, and drawback disbursements—improving cash flow and reducing compliance burden.

Global Recognition Through Mutual Recognition Agreements (MRAs)

AEO Tier II and Tier III exporters benefit from international recognition under MRAs signed by India with key trading partners.

This means:

• Simplified border controls abroad
• Enhanced credibility with overseas buyers and customs authorities
• Better access to global value chains