How to start Export Business in India: India's growing economy, diverse range of products, and increasing global demand make it a promising country for starting an export business. Whether you’re from a metropolitan city or a small town, the potential to sell Indian products abroad is greater than ever. However, starting an export business requires planning, legal registrations, and market understanding.
How to start an export business in India?
This article will guide you step-by-step on how to start an export business in India. Even if you’re new to the business world, this guide is written in simple terms to help you understand the process clearly.
Who Can Start an Export Business in India?
Anyone with a basic understanding of trade, a willingness to learn, and the right mindset can start an export business. You don't need to be a large manufacturer or a big company. Individuals, startups, and even small traders can begin exporting with proper planning.
Whether you are a graduate looking to start something on your own or a homemaker with access to local handmade products, this business is open to all. The only thing that matters is the seriousness and commitment to follow the required procedures.
Can You Start Export Business from a Small Town?
Yes, you can absolutely start an export business from a small town in India. With good internet access, courier services, and basic infrastructure, location is no longer a major barrier.
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In fact, many small-town products like handicrafts, textiles, spices, and herbal items are in high demand globally. If you can ensure quality and timely delivery, buyers will be happy to work with you regardless of your town’s size.
How Much Investment Is Required to Start an Export Business?
The investment depends on the product, scale of operations, and target market. On average, you might need anywhere between ₹50,000 to ₹5 lakh to get started. This includes setting up your office, registrations, sample products, packaging, and logistics.
If you start small and manage tasks on your own initially, the cost can be lower. As the business grows, you can invest more in scaling operations, marketing, and team hiring.
How Much Space Is Needed to Operate?
You don’t need a large space to begin. A small home office or a shared working space is enough if you're just coordinating and outsourcing production.
However, if you're planning to store inventory, you might need a small warehouse or storage area. Choose space based on the nature of the products and how much stock you plan to handle at one time.
How Much Profit Can Be Made from Export Business?
Export business can be profitable if managed properly. Margins typically range between 10% to 50%, depending on the product and country you export to. So one can easily make 1 Lakh to 5 Lakh Monthly.
Profits grow with time as you build relationships, reduce shipping costs, and get repeat orders. Like any business, success comes with consistency, quality, and customer trust.
What Are the Products We Can Export from India?
India has a wide range of products with export potential. Some popular categories include:
- Handicrafts and textiles: Products like sarees, carpets, embroidery, and wooden crafts.
- Spices and agro-products: Turmeric, rice, tea, and dry fruits are in high demand.
- Engineering goods and chemicals: Tools, machinery, and organic chemicals.
- Jewelry and gems: Gold, silver, imitation jewelry, and precious stones.
Choose products that are available in your area and have demand in international markets.
Best Products to Export from a Small Town in India
Small towns often have access to unique products that are not mass-produced. Some suitable items include:
- Local crafts and art pieces made by regional artisans.
- Organic spices and pulses grown in nearby villages.
- Handloom and traditional textiles unique to your region.
- Eco-friendly products like bamboo items, jute bags, and terracotta ware.
These products have high appeal in global markets due to their authenticity and cultural value.
Which Countries Can We Export To?
You can export to almost any country, but some destinations are easier to begin with due to trade agreements and easier procedures.
Popular export destinations for Indian products include the USA, UAE, UK, Canada, Germany, Australia, and Singapore. Start with countries where your target product is in demand and shipping is manageable.
How to Choose the Right Product and Market for Export?
Research is key to choosing the right product and market. Look for:
- Local products that are unique or affordable.
- Markets where those products are in demand.
- Countries with lower import duties and fewer restrictions.
Use government websites, trade directories, and online buyer-seller platforms to gather data and trends.
What Is IEC and Why Is It Needed?
IEC stands for Importer Exporter Code. It is a 10-digit code issued by the DGFT (Directorate General of Foreign Trade).
This code is mandatory to start any import or export business in India. Without an IEC, customs authorities will not allow your goods to be shipped outside India.
What Licenses or Registrations Are Required for Export Business?
Besides the IEC, you may need:
- GST registration: If your business turnover is above the prescribed limit.
- FSSAI license: If you are exporting food products.
- APEDA or other council registration: Depending on your product type.
Make sure you check product-specific requirements to avoid legal issues later.
What Are the Key Documents Required for Export?
Some important documents include:
- Commercial Invoice: Details of goods sold.
- Packing List: Item-wise details in the shipment.
- Bill of Lading or Airway Bill: Proof of shipment.
- Certificate of Origin: Certifies where goods are made.
- Export Declaration Form (EDF): For customs clearance.
Having accurate and complete documentation is crucial for smooth exports.
What Is the Role of DGFT?
The DGFT (Directorate General of Foreign Trade) is the authority that regulates and promotes India’s foreign trade.
They issue IEC codes, provide export-related guidelines, and introduce schemes to support exporters. They also handle licensing for restricted goods.
What Is an Export Promotion Council and Why Join One?
Export Promotion Councils are government-recognized bodies that help exporters promote their products globally.
They assist with certifications, provide market insights, and participate in trade fairs. Joining a council related to your product category can be very helpful in networking and building trust with buyers.
What Are the First Steps to Starting an Export Business?
Here’s a simplified path to begin:
- Choose a product with demand in international markets.
- Get your IEC code from DGFT.
- Register your business and complete tax requirements.
- Join an Export Promotion Council if applicable.
- Create sample products and test shipping.
These steps form a solid foundation to get your business off the ground.
How to Ensure Product Quality Meets International Standards?
International buyers expect consistent quality. To meet their expectations:
- Work with reliable suppliers or manufacturers.
- Use proper packaging to prevent damage.
- Follow quality certifications if required for your product.
Always test your products before bulk shipping to maintain customer satisfaction.
How to Price Products for the International Market?
Pricing depends on cost, competition, and customer expectations. Consider:
- Production and packaging cost.
- Shipping, insurance, and duties.
- Market rates and competitor pricing.
Avoid underpricing to attract buyers. Instead, focus on offering value through quality and service.
How to Find Buyers for Export Products?
You can find buyers through multiple channels:
- B2B platforms like Alibaba, IndiaMART, or TradeIndia.
- International trade fairs and exhibitions.
- Social media and digital marketing.
- Connecting with foreign distributors and retail chains.
Be professional in your communication and always respond on time.
How to Handle Logistics and Shipping from a Small Town?
Tie up with freight forwarders or shipping agents who handle international shipments. Many offer end-to-end solutions including customs clearance.
You can transport your goods from your town to the nearest port via road or rail. Use packaging that ensures safety during long-distance shipping.
Understanding Export Cost and Other Operational Expenses
Export costs include:
- Product manufacturing or purchase.
- Packaging and labeling.
- Transport and logistics charges.
- Duties, taxes, and insurance.
Calculate total landed cost before quoting to buyers. Keeping track of costs helps you set the right prices and avoid losses.
How to Get Funding for an Export Business?
You can fund your business through:
- Personal savings or family investment.
- Bank loans under government export schemes.
- Export finance from institutions like EXIM Bank.
Keep a business plan ready to present when applying for funding. Good records improve your chances of getting approved.
Common Obstacles Faced by Small Exporters and How to Overcome Them
Some challenges include:
- Lack of buyer trust: Build credibility through councils and certifications.
- Logistics delays: Work with experienced shipping partners.
- Currency fluctuations: Use hedging tools or work in stable currencies.
With time and experience, you’ll learn how to handle these issues better.
Tips to Grow and Sustain Your Export Business
- Focus on building long-term relationships with buyers.
- Always deliver on time and maintain quality.
- Keep learning about global trends and demands.
- Join exporter groups and attend training sessions.
Consistency and adaptability are key to sustained success.
Conclusion
How to start Export Business in India: Starting an export business in India is both exciting and rewarding. With the right approach, even beginners can build a successful venture. This business not only gives you access to global markets but also helps contribute to India's economy.
Take small steps, stay consistent, and keep learning. The world is full of opportunities waiting for you to explore.