How to start an export business in India in 2027
Exporting can help Indian manufacturers, traders and small businesses reach customers beyond the domestic market. But a successful export business begins with product research, reliable costing and buyer validation—not simply obtaining a registration.
1. Choose a product and target market
Start with products you can source consistently and inspect for quality. Assess demand, competition, destination-country standards, packaging, shipping cost and payment risk. Use trade data, trade fairs, export promotion councils and buyer conversations to validate demand. Do not assume a product is freely exportable: check its current ITC(HS) export policy and any product-specific conditions on the DGFT portal.
2. Set up the business
Choose a suitable structure such as proprietorship, partnership, LLP or company. Obtain PAN, open a business current account with a bank equipped to handle foreign-exchange transactions, and establish proper bookkeeping. Discuss export receipts, bank documentation and foreign-exchange realisation timelines with your authorised dealer bank.
3. Obtain an Importer Exporter Code (IEC)
For most goods exports, an IEC issued by DGFT is required unless an exemption applies. Apply through the official DGFT portal using the current application workflow. IEC is PAN-linked. Keep the registered details accurate and complete the annual electronic confirmation/update during the prescribed April–June period, even where details have not changed.
4. Check GST and product-specific compliance
Exports are treated as zero-rated supplies under GST, subject to the applicable conditions and procedures. Discuss the appropriate route—such as export under LUT without payment of integrated tax or payment of tax followed by refund—with a qualified GST professional. Some products require additional certificates, testing, health or phytosanitary documents, registrations or permissions.
5. Find and qualify overseas buyers
Build a target list by country, product and buyer type: importer, distributor, wholesaler, retailer or industrial procurement team. Use trade fairs, industry associations, export promotion councils, verified B2B directories and professional outreach. Verify the buyer's legal identity, website, trade references, business address and payment capability before accepting a large order.
6. Calculate the export price
Include product cost, packaging, inland transport, inspection, customs-broker charges, port or terminal costs, freight, insurance, bank charges, commission, finance cost and a contingency. Agree the Incoterm and named place precisely. Compare the expected contribution under different shipment sizes and payment terms before quoting.
7. Prepare documents and ship
Common core documents for goods exports include the commercial invoice-cum-packing list, transport document (such as bill of lading or airway bill) and shipping bill/bill of export. Additional documents depend on the product, destination and transaction. Coordinate the shipping bill, customs filing, cargo handover and post-shipment bank documentation with your customs broker and bank.
8. Start with a controlled first shipment
Use a sample or manageable first order where commercially sensible. Approve a written specification, inspection criteria, packaging, delivery schedule, claim process and payment milestones. Retain purchase orders, invoices, shipping records, proof of delivery and bank realisation evidence.
Common mistakes to avoid
- Quoting before calculating freight, duties and destination requirements.
- Treating an online buyer enquiry as proof that the buyer is genuine.
- Using an incorrect HS classification or assuming all goods are freely exportable.
- Agreeing vague delivery terms or an unclear named place under Incoterms.
- Offering unsecured credit to an unverified first-time buyer.
- Ignoring foreign-exchange and GST documentation after shipment.
Frequently asked questions
Is IEC compulsory for every exporter?
For most exports of goods, yes, subject to exemptions and the current Foreign Trade Policy. Check the latest DGFT rules for your specific activity.
Can a small business export?
Yes. A small business can explore exports if it can meet product, quality, documentation, compliance and delivery requirements.
Can I export without manufacturing?
A merchant exporter can source eligible products from manufacturers and export them, provided the business meets the applicable legal and product requirements.
Where can I list my business?
Create a complete business profile on Twimzi to present your company, products and contact details to potential business customers. You can add your business on Twimzi and explore business listings.
Official resources
- DGFT: https://www.dgft.gov.in/
- Indian Trade Portal: https://indiantradeportal.in/
- ICEGATE: https://www.icegate.gov.in/
- GST portal: https://www.gst.gov.in/
This guide is general information, not legal, tax, customs or financial advice. Rules and product policies can change; verify the latest official requirements before each transaction.