How to Start Export Business in India? Documents, Process, Cost, and Profit Analysis

How to Start Export Business in India: Step-by-Step Guide for Beginners in 2026

India’s export sector is witnessing strong growth, placing it among the leading expanding economies worldwide. From textiles, spices, and leather to engineering goods, pharmaceuticals, and IT services, Indian products are in demand in the global market. Because of this demand, many entrepreneurs today are searching how to start export business in India (how to start an export business in India) and understand whether it is profitable or not.

If you are planning to start an export business in India, this guide will help you understand everything step-by-step, including the process, legal documentation, investment requirements, risk, taxation, and how to find buyers. This blog will also help beginners who want to start import export business in India from home using digital platforms.

What Is Export Business?

An export business means selling products or services from one country to another country. In India, exports are regulated by the Directorate General of Foreign Trade (DGFT). Exporters need to follow rules, register the business, and meet international quality standards.

Current Export Trends in India: FY 2024-25 Growth Performance

India’s export sector has shown strong momentum in FY 2024-25, reflecting improving global demand, better supply chain stability, and increasing participation from Indian exporters. According to available data, India’s total exports reached $433.56 billion, marking a growth rate of 14.44 percent compared to the previous financial year. This upward trend signals improving conditions for new and existing businesses entering the export market.

One of the strongest months during the financial year was December, which recorded a growth rate of 16.50 percent, with exports reaching $37 billion. This indicates strong buyer demand across product categories such as engineering goods, electronics, pharmaceuticals, agriculture, and textiles. The December performance also suggests that seasonal demand and favourable trade routes may have contributed to higher export volumes.

India — Merchandise Exports: FY 2020-21 to FY 2024-25

Financial Year (Apr–Mar)	Merchandise exports (US$ billion)	YoY change
FY 2020-21	291.81.	base year
FY 2021-22	422.00.	+44.64% (422.00 − 291.81 = 130.19; 130.19 ÷ 291.81 = 0.4464 → 44.64%)
FY 2022-23	447.46.	+6.04% (447.46 − 422.00 = 25.46; 25.46 ÷ 422.00 = 0.0604 → 6.04%)
FY 2023-24	437.07 (reported also as ~437.10 in some releases).	−2.32% (437.07 − 447.46 = −10.39; −10.39 ÷ 447.46 = −0.02322 → −2.32%)
FY 2024-25	437.42.	+0.08% (437.42 − 437.07 = 0.35; 0.35 ÷ 437.07 = 0.0008009 → 0.08%)

 

Documentation Required to Start Export Business in India

To start import export business in India, completing proper documentation is necessary. Important documents include:

1. Business registration (Proprietorship, Partnership, LLP, or Private Limited)
2. PAN Card
3. Bank account with an authorised bank supporting foreign trade
4. Import Export Code (IEC) from DGFT
5. GST Registration (required if turnover crosses threshold or exporting taxable goods)
6. RCMC Registration (Registration Cum Membership Certificate from relevant Export Promotion Council)
7. Udyam/MSME registration (optional but useful for government benefits)
8. Trade license and compliance depending on product category

Documentation ensures the business becomes eligible for international trade support, government incentives, and export subsidies.

Average Income in Import/Export Business in India

Many new entrepreneurs want to understand the average income import/export business in India. Income varies based on product type, pricing, business volume, and international market demand.

Small exporters earn around ₹40,000 to ₹1,50,000 per month initially. As the business grows and exporters build strong B2B export connections, monthly income can cross ₹5 lakh to ₹50 lakh depending on product scale and markets.

Large exporters dealing in bulk orders like engineering goods, agricultural products, or pharmaceuticals earn significantly higher.

Which Export Business Is Most Profitable in India?

Many first-time exporters want to know which export business is most profitable in India. Some highly profitable export categories include:

1. Pharmaceuticals and Ayurvedic products
2. Handicrafts, leather goods, and home decor
3. Spices, tea, coffee, rice, and dry fruits
4. Textiles, garments, and ethnic wear
5. Electronics and engineering goods
6. Organic food and natural skincare products

Profit depends on sourcing cost, export demand, and competition. Products with high demand and low domestic cost usually offer better margins.

How Do I Find Export Buyers?

Finding international buyers is one of the biggest challenges for new exporters. To find genuine export business buyers, follow these methods:

1. B2B Export Platforms: Alibaba, IndiaMART, TradeIndia, Global Sources
2. Government Portals: DGFT, APEDA, FIEO, Export Promotion Councils
3. Social Media and LinkedIn Networking
4. Attending international trade fairs and exhibitions
5. Using Export Data Websites and Market Research Tools
6. Cold Emailing and Business Outreach Strategy

Once you find interested buyers, always verify their authenticity before signing a contract.

How Much Money Is Needed to Start an Export Business?

Investment depends on business model, product type, and scale. A small-scale export business can be started from ₹50,000 to ₹5 lakh. Costs include documentation, product sourcing, packaging, marketing, and logistics.

Exporters using B2B export models with drop-shipping or direct manufacturing partnerships can minimise upfront investment.

What Are the Risks of Export Trade?

Payment Default from Buyers

One of the major risks in export trade is the possibility of payment default. Sometimes buyers may delay payment, refuse payment, or fail to honour agreed terms. To reduce this risk, exporters should verify buyer credibility, use secure payment modes like Letters of Credit, and consider export credit insurance to protect against financial loss.

Currency Fluctuations

International trade involves dealing with foreign currencies, and exchange rate fluctuations can affect profit margins. If a currency weakens after a contract is signed, the exporter may receive less value in Indian rupees. Managing this risk requires using hedging tools, forward contracts, and monitoring global financial trends to maintain price stability and profitability.

Shipping Delays or Damage to Goods

Shipping delays and damaged products are common risks in global logistics. Poor packaging, customs issues, weather conditions, or unreliable transport partners may result in delayed deliveries or damaged goods. Exporters can reduce this risk by choosing trusted logistics companies, using proper export-quality packaging, and securing marine cargo insurance to cover losses during transit.

Regulatory Compliance Issues

Export businesses must follow international trade regulations, customs requirements, quality standards, and documentation rules. Any errors, missing certifications, or policy violations may lead to penalties, shipment delays, or return of goods. Staying updated with DGFT rules, trade agreements, and product-specific compliance helps exporters avoid legal problems and ensures smooth international transactions.

Quality Control Challenges

Maintaining consistent product quality is essential in export trade because international buyers expect strict standards. If products do not match agreed specifications, buyers may cancel orders or demand compensation. Having proper quality checks, certifications, supplier audits, and packaging standards helps exporters build trust, retain clients, and compete confidently in global markets.

Market Competition

Global trade markets are highly competitive with suppliers from many countries offering similar products. Price pressures, innovation, and shifting buyer preferences can affect demand. To stay competitive, exporters must focus on product quality, branding, customer service, and market research. Offering unique features or value-added packaging can help attract long-term international customers.

Risk can be managed using export insurance schemes, secure payment terms, and reliable logistics partners.

How Do Exporters Get Paid?

Exporters receive payment through secure financial channels. Common payment methods include:

1. Advance payment
2. Letter of Credit (LC)
3. Telegraphic Transfer (TT) or SWIFT
4. Documentary Collection
5. Third-party Escrow services

Government also provides credit guarantee schemes to protect exporters from non-payment risk.

How to Start Export Business in India

Starting an export business in India can be highly profitable because of the country’s wide range of products in demand globally, such as textiles, garments, spices, handicrafts, processed foods, chemicals, and machinery. With the right planning, documentation, and strategies, anyone can set up an export business and connect with international buyers. Also Beginning an export business in India from home is possible for products like handmade items, spices, packaged foods, handicrafts, garments, and custom products. Here’s a practical, step-by-step guide with actionable tips.

1. Finalise Your Product

Choosing the right product is the foundation of a successful export business. Focus on products that have global demand rather than just domestic popularity. Products reflecting Indian culture, craftsmanship, or organic quality often perform well in international markets. Consider whether your product solves a problem, meets a need, or offers a unique value to buyers. Starting with one or two products allows you to maintain quality, manage logistics efficiently, and understand your target market before scaling up. Research potential competitors in the international market and study their pricing and product offerings.

2. Prepare a Business Plan

A solid business plan helps you organize your resources and define your goals. Identify your target countries, understand their import regulations, and estimate costs including production, packaging, shipping, customs, and taxes. Include strategies for marketing, logistics, and pricing. A well-planned approach reduces risk and increases the chances of success.

3. Complete Essential Documentation

Legal compliance is crucial for exporting from India. Obtain your Import Export Code (IEC) through the DGFT website, as it is mandatory for all exporters. Register for GST, as exports are generally zero-rated, allowing you to claim input tax credits. Depending on your product, obtain additional licenses or certifications, such as FSSAI for food products or BIS/ISO for specific manufactured goods. Certain products may also require registration with Export Promotion Councils and an RCMC(Registration Cum Membership Certificate) to avail of government export benefits.

4. Identify Your Target Market

Research the countries where your product has high demand. Understand their import regulations, tariffs, and taxes. Analyze competitors, local trends, and cultural preferences. Understanding your market helps in pricing, packaging, and marketing your product effectively. Starting with one or two target countries allows you to focus on building a strong presence before expanding globally.

5. Find Reliable Suppliers or Manufacturers

If you are not producing the products yourself, source from reliable manufacturers or suppliers. Verify the quality, production capacity, and delivery timelines. Negotiate prices, payment terms, and minimum order quantities. Building a strong supply chain ensures consistency and reliability in your export business.

6. Develop an Export Pricing Strategy

Pricing your products for international markets is crucial. Factor in production costs, shipping, customs duties, insurance, packaging, and payment processing fees. Avoid underpricing your products to compete; buyers value quality and reliability over the cheapest price. Offer bulk order discounts or flexible payment options to attract international buyers.

7. Partner with Shipping and Logistics Companies

Shipping and logistics are central to the export business. Work with experienced international couriers or freight forwarders. Ensure your products are packed securely and comply with international standards. Learn about customs clearance procedures and required documentation such as commercial invoices, packing lists, bills of lading, and certificates of origin. Starting with smaller shipments helps you understand the process without taking large financial risks.

8. Register on B2B and Trade Platforms

To reach international buyers, register on B2B portals like IndiaMART, TradeIndia, and Alibaba, or consider global marketplaces depending on your product. Use high-quality images, clear product descriptions, and detailed specifications to gain trust. Establish a professional online presence and consider creating a company website to showcase your product range and certifications.

9. Promote Your Products Internationally

Marketing your products globally requires more than just listing them online. Use social media platforms like Instagram, Facebook, and LinkedIn to reach buyers. Share the story behind your products to connect emotionally with your customers. Participate in virtual trade fairs, exhibitions, and online business networking events to find buyers. Personalized email outreach with product details, pricing, and shipping options can also generate leads and orders.

10. Start Small and Scale Gradually

Begin with limited orders to manage finances, shipping, and customer interactions carefully. Learn from mistakes and gradually reinvest profits into improving your products, packaging, and marketing. Collect reviews and feedback to improve quality and reliability. Over time, expand your product range, target additional countries, and scale operations with warehouses or distribution centers if needed.

11. Focus on Quality and Customer Service

Consistent product quality and excellent customer service are the pillars of a successful export business. Respond promptly to buyer inquiries, maintain professional communication, and ensure timely delivery. International buyers often value reliability as much as product quality, so establishing a trustworthy reputation can lead to repeat orders and long-term growth.

Is There Any Tax on Export in India?

Exports are zero-rated under GST. This means goods exported outside India are not taxed. Exporters can claim a GST refund on input tax credit.

Who Pays Tax on Exports?

The exporter does not pay tax on export goods. However, exporters may need to pay customs duties depending on the product category or country agreements.

How to Calculate Export Tax? Formula

Export tax calculation depends on product category and applicable customs duty. A general formula is:

Export Tax = Product Value x Applicable Duty Rate

For example, if rice worth ₹1,00,000 is exported and the duty rate is 10 percent, then:

Export Tax = 1,00,000 x 10 percent = ₹10,000

Many products, especially agricultural goods, handicrafts, and medicines, have reduced or zero duty.

Final View

Starting an export business in India is one of the best business opportunities today. With rising global demand for Indian products, supportive government policies, and digital platforms, exporting has become easier than ever. Whether you operate from home or build a full-scale manufacturing unit, success depends on proper documentation, market research, quality control, and strong buyer relationships.

Read also : Customs Duty and Tariffs in India 2025: Guide to Import, Export Taxes and HSN Codes

Public FAQs

1. What is the minimum investment required for an export business in India?

The minimum investment for starting an export business in India depends on the product type and scale. Many small exporters begin with ₹50,000 to ₹2 lakh for documentation, product sampling, packaging, and logistics. If you already have suppliers or your own manufacturing, the cost may reduce. As the business grows, investment increases gradually to handle bulk orders and marketing expenses.

2. How long does it take to get an Import Export Code (IEC)?

The Import Export Code (IEC) is a mandatory requirement for conducting import export business in India. The application process is online through DGFT and requires basic details like PAN, bank account, and identity proof. Once submitted correctly, IEC approval typically takes 3 to 7 working days. Without IEC, exporters cannot legally ship goods outside India or receive international payments.

3. Can I export products without GST registration?

In some cases, you may operate without GST registration if your turnover is below the legal threshold and your product category does not require mandatory GST compliance. However, GST registration is highly beneficial in the export business in India because exports are zero-rated, allowing you to claim input tax refunds. This reduces cost and improves margins, especially when you scale operations.

4. Do I need a warehouse to start exporting?

A warehouse is not compulsory when starting a small-scale B2B export or home-based export business. Many new exporters operate from home, partner with suppliers, or use third-party warehouse and logistics services. As orders increase and shipment frequency grows, having a dedicated warehouse becomes useful for inventory control, better packaging, and faster order fulfilment for international buyers.

5. Are export profits taxable in India?

Profits earned through an export business in India are taxable under income tax rules because it is considered a business activity. However, exporters may receive benefits such as duty drawback, MEIS/RODTEP schemes, and GST refunds depending on eligibility. Maintaining proper invoices, documentation, and accounting helps reduce tax burden and allows exporters to claim government incentives smoothly.