How to Export from India for New Businesses: A Comprehensive Guide

New to exporting products globally?

Don’t worry, this guide will walk you through the essentials of starting your export business in India and scaling it while adhering to Indian export guidelines.

Setting Up Export Business in India: Key Steps Involved

1. Register your Business while Adhering to Local Regulations

In India, there are seven types of company registration. These are as follows:

• Private Limited Company
• Public Limited Company
• Partnerships Company
• Limited Liability Partnership
• One Person Company
• Sole Proprietorship
• Section 8 Company

2. Open a bank account
3. Obtain Permanent Account Number (PAN)

Documents required to be submitted along with the PAN card application:

• Identity proof
• Address proof
• Date of birth (DoB) proof
• Registration certificate in case of firms, companies, HUF, and association of persons

4. Obtain Importer-Exporter Code (IEC)
5. Registration cum membership certificate (RCMC)
6. Selection of products
7. Selection of markets

Research potential markets using tools/resources like Trade Map and Market Access Database

8. Find buyers

How?

• Participate in trade fairs, exhibitions, B2B portals
• Export Promotion Councils, Indian Missions abroad, overseas chambers of commerce can be helpful
• Create multilingual website

9. Sampling
10. Pricing/Costing 

Is Exporting Globally a Smart Move for New Businesses

We understand that entering international market can be a long and complex process. However, if you do it with the right plan and knowledge, it can be a rewarding effort since exporting is the fastest way to internationalise any business. It helps you in the long run, increasing your global footprint.

Check out the benefits that come along with exporting right

Increased Revenue

Tap into international markets and access a larger customer base, which will ultimately help you increase your sales and profitability.

Imagine, your small company in Kerala sells traditional masalas. You can export the same to countries like the UAE or the US, where Indian cuisine is beloved. As a result, your business could see profits multiply without significantly altering production.

Market Diversification

Reduce reliance on a single market for achieving business success. Exporting helps you safeguard your business against domestic economic downturns.

If you cater to both Indian and the UK customers as a textile exporter, the overseas market can help you maintain a steady flow of revenue, even if local sales dip.

Brand Recognition

While Indian products are renowned for their quality, authenticity, and cultural significance, exporting can further enhance the global visibility of your brands.

Brands like Patanjali started small but achieved fame globally by exporting their natural products.

Government Incentives

Exporters can avail financial benefits through schemes like the Merchandise Exports from India Scheme (MEIS), and the Remission of Duties or Taxes on Export Products (RoDTEP), among others.

Reduce your costs through government support and invest that amount towards better packaging or marketing. 

Documents Required to Export from India

As a new seller, it is integral to understand Indian export guidelines to avoid last-minute hassles in your export journey. Navigating these requirements may feel overwhelming at first, but once completed, you’ll be ready to export with confidence.

Document	Description
Bill of Lading	One of the essential documents for export-bound cargos, issued by the carrier. It represents a contract and a receipt between the shipper and the carrier. The carrier acknowledges the goods are in good condition for shipment.
Commercial Invoice cum Packing List	As per Government regulations, the Packing List and Commercial Invoice have been combined into one. Commercial Invoice: Prepared by the exporter for Customs clearance. Packing List: Lists items if multiple products are in the cargo.
Shipping Bill or Bill of Export	A customs document required for clearance of exports, issued by the Indian Customs Electronic Gateway (ICEGATE). Mandatory for shipping goods. (ICEGATE provides electronic filing of Shipping Bills.)
Proforma Invoice	Needed for advance payment from committed customers. It includes details about the product, delivery, price, payment method, and other agreements, serving as a trust-based agreement between the seller and buyer.
Export Order/Purchase Order	Issued by the buyer after receiving the Proforma Invoice. It contains details like the cost, currency, shipping details, and specifications of goods from the buyer’s side.
Certificate of Origin (COO)	Provides information about the country of origin of the goods. It is generated for each item in the parcel and serves as an affidavit attached to the commercial invoice.
Bill of Exchange (BE)	Instructs the buyer to pay the stated amount. Generated by the exporter to inform the importer about the payment.
Letter of Credit	Issued by the buyer’s bank to confirm payment to the exporter. Acts as a guarantee that the buyer’s purchase order will be honored, even if there is a delay in payment.
Inspection/Quality Check	A certificate prepared by the exporter upon the importer’s request to verify the quality of goods before shipment.
Phyto Sanitary Certificates and Fumigation Certificates	Ensures product quality as per international standards. The Phyto-sanitary certificate is mandatory for exporting agricultural commodities. Fumigation certificates are also required for certain agricultural products.

Source: DGFT 

Select the Right Product

Identify products with high demand globally. Popular categories include:

• Handicrafts and Textiles: Kashmiri shawls, hand printed sarees, and home textiles with traditional designs, among other products present immense opportunities for exporters.
• Gems and Jewellery: Handcrafted jewellery from Jaipur and other states enjoy significant international demand.
• Food Products and Spices: Indian spices are widely used globally to enhance food flavours.
• Herbal Products: The growing inclination towards organic and natural products is driving the growth of the category.

These products can be a hit in international markets due to their uniqueness and authenticity, if you strategise your exports journey well.

Choose Target Markets

Research potential markets using tools like:

• Trade Map: For global trade statistics.
• Market Access Database: For EU-specific regulations.

Picture this: A mango farmer from Ratnagiri could target the Middle East, where Alphonso mangoes are in high demand, ensuring premium prices for their product.

Set Up Logistics and Shipping

Efficient logistics play a crucial role in ensuring business success. Choose a reliable logistics partner that not only ships your products but offers value-added services like real-time tracking and others.

• Postal Service: Shipping services in collaboration with the International Postal Union
• 4PL Logistics Providers: They offer multiple courier options to meet your specific needs.
• International Logistics Service Providers: They manage shipping and customs clearance for you.
• eCommerce Affiliate Fulfilment Models: For instance, Fulfillment by Amazon (FBA) allows Indian sellers to store and ship products globally.

Let’s say you’re exporting tea to the UK and Amazon FBA takes care of storage and delivery. This ensures your products reach customers on time while you remain free from shipping complexities and focus on your core business​​.

Leveraging the Power of eCommerce to Facilitate International Trade

Imagine your business being able to sell spices directly to homes in Canada or organic cotton clothes to families in Australia, all using Amazon tools and services.

• Global Storefronts: List products in multiple countries.
• Advertising Solutions: Sponsored ads to increase product visibility.
• Online Resources and free Training and Webinars: To ease international trade for beginners, platforms like Amazon offers free training and online resources. This aims to assist exporters with product listing, documentation and compliance, advertising and product marketing, among others​​.

Best Practices for International Trade for Beginners

Understand Cultural Nuances

Keep in mind your target audience while finalizing your business strategy.

Your products and marketing strategies must meet the cultural expectations of your customers.

Optimise Pricing

Use tools to analyze competitor pricing and set competitive rates​. For instance, you may use Amazon’s Pricing Dashboard to compare prices and decide the right prices for your products.

Moreover, presenting an introductory discount can help you stand out in a new market, especially when your product is on a pricier side due to its premium quality.

Focus on Quality and Compliance

Offering high quality products and services is a key to gaining a loyal customer base. Moreover, as you enter new markets, you must make sure that your products meet international standards and certifications to build trust.

Remember, a poor-quality product can tarnish your brand’s reputation so don’t be afraid of investing in proper labeling and certifications.

Government Initiatives: Level Up Your Exports Game with the Necessary Support

As a new business, make the most of the support and financial assistance offered by the Indian government to the exporters. Some of the schemes are:

Export Promotion Councils – Unlock networking opportunities and get market insights.

Niryat Bandhu Scheme – A new exporter? Get mentorship and avail training programmes designed to ease complex export procedures and global trade requirements.

Credit Guarantee Scheme for Startups (CGSS) – Startups entering export markets can get collateral-free loans under the scheme.

Market Access Initiative (MAI) – Get financial aid for market studies, trade promotion events, and exploring new markets.

Common Challenges in Exporting and How to Overcome Them

Challenge	Solution
Documentation and Compliance	Utilise platforms like Amazon’s Export Compliance Dashboard to manage paperwork efficiently.
Shipping Delays	Partner with a reliable logistic service provider like ShipGlobal or use services like FBA to experience hassle-free shipping.
Payment Risks	Use secure payment methods like Letters of Credit or payment gateways.

Conclusion

Exporting products globally from India can prove to be extremely rewarding for your business when done with the right strategy. Do your research well, identify top products and target markets, understand local regulations and be ready with all the necessary documents required for exporting from India.

Not just this, leverage the power of eCommerce to reach international customers while sitting at your home in India.

Now that you have got the right strategy, all that is left is to take the first step and get started.

Why go local when you can go global? The world is waiting for you.

Happy Shipping!

FAQs for How to Export from India for New Businesses