Starting an import export business in India needs proper registration, choosing profitable products, finding reliable buyers and suppliers, and understanding all world trade regulations. You must need an Importer Exporter Code (IEC) from the Directorate General of Foreign Trade (DGFT), a GST registration, and a business bank account to start an import-export business. Start small, research demand, and build a connection with international business people.
This single blog will explain everything you need to know about the Import export business.
I know you have a dream to run a business that connects India to the world. A business where your products or imported products will reach the international markets, or you can also import high-demand goods to India.
Import Export business is your financial freedom gateway. But there are a lot of processes involved in this business. That’s why most people don’t know how to start a import export business in India.
The thing is, starting an import export business in India is easier than you think with proper guidance.
I’ll share exactly how to start a import export business In India, avoid the common mistakes and find the profitable products to import and export in India.
What Is an Import Export Business?
An import export business is all about buying and selling goods across international borders. When you import, you bring products from foreign countries into the local market to sell. Export is selling products to customers worldwide.
For Example:
India is popular for exporting textiles, spices, IT Services and Minerals. While India imports crude oil, machinery and electronics products. Import-export businesses act as middlemen, who make profit by exchange the goods.
If you want to be profitable and successful in the import export business, the important thing is to find a high demanded products and build a strong and well-established relationship with your suppliers and buyers to survive long period in this business.
Why Start an Import Export Business in India?
India is one of the fastest-growing countries in the world by economy, so it’s an excellent place to start an import export business in India.
With Huge global demand, Indian products like spices, textiles and handicrafts are high demand in western countries. Export those items to the demanded countries and sell them for high margins.
The Indian government provide a various incentives, subsidies, and simplified trade policies to encourage global import-export business. (The Make in India concept also promote the exports.
There are various ranges of products from IT services to organic food. India has a different kind of products that can be exported profitably.
International trade often provides a better profit margin compared to domestic business due to currency exchange advantages.
Low competition in micro niche markets, If you figure out the untapped markets, you can dominate the import export business with less competitions.
How to Overcome Challenges in Import Export Business?
When you start and run import import-export business, at some moment it comes with challenges. Here’s how to overcome those challenges
- Lack of Knowledge – Most the feel fear when they don’t understand the trading process. The only solution to overcome is to Take a valuable online course, understand the government import export guidelines, and build a relationship with experienced industry experts.
- Finding Reliable Buyers & Suppliers – Trust is the main factor in import export business. Use the platforms like Alibaba, IndiaMART and TradeIndia, companies can help you to connect with verified international buyers and sellers. You need to do some research and verification before you’re going to start a business with those people.
- Rules & Regulations – The legalities and paperwork can seem complicated and confusing. So, you can hire a customs broker to make the process simple.
- Currency Exchange & Payment Problems – International payments can be tricky because we don’t know the exact process of the payment in their countries. So we need to clarify the payment process before starting a deal. After the deal, use the secured payment methods like PayPal, Letter of Credit (LC) or Trade Credit Insurance to avoid the risks.
If you can navigate those challenges, you’ll overcome most of the beginner’s.
How to Start a Import Export Business in India
First decide your Business model, which is going to import or Export. Whether you want to focus on starting an import or export business,s you need some clarification.
Import – The business is looking to bring high-demand foreign goods into India. Example: Importing luxury watches from Switzerland and Korean skincare products to India.
Export – This Business is about selling Indian products to abroad. Example: Exporting Indian handmade products to the USA or IT services to Europe.
Download FREE Custom Import Export Procedures PDF
Best Products for Export Business in India
If you plan to start an Export as your business model, you need to find a product to sell abroad and make some profit.
- Organic Agriculture Products
- Handicrafts and Home Decor
- Textile and Apparel
- Pharmaceuticals and Ayurvedic products
- IT and Software services.
Best Products for Import Business in India
If importing good products to India is your goal, the high-return products are:
- Electronics and Gadgets
- Luxury Watches and Perfumes
- Branded fashion accessories
- Industrial Machinery Products
- Skincare products
How much money is needed to start an import export business in India?
One of the biggest and common questions for all is “How much money is needed to start an import export business in India”
The truth? It depends,
Based on your business Size, Products, Location to Import or Export, and so many things to consider for money.
I’ll share a rough estimation for Import export business investments
- Small Size Business: ₹50,000 – ₹1,00,000
- Medium Size Business: ₹2,00,000 – ₹5,00,000
- Large Scale Business: ₹10,00,000 and above
The Cost Breakdown for Your Business
- Business Registration & Licenses: ₹5,000 – ₹10,000
- Importer Exporter Code (IEC) Registration: ₹500
- Initial Inventory & Storage: ₹20,000 – ₹1,00,000 (depends on product)
- Marketing & Website: ₹10,000 – ₹50,000
- Logistics & Customs Duties: Varies by product category
How to Start a Import Export Business in India with Low Capital?
You can start a Business within one lakh You don’t need lakhs and lakhs of rupees to start a business. Here’s how
- You can start with the Dropshipping business model. In this model, you will be a middleman between buyers and suppliers by charging a commission on the transaction.
- Partner with an export house instead of setting up your own supply chain business.
- Use the government policies and incentives for your export businesses to run with lower costs.
Start a business with a small investment by the above method, and reinvest the profits into your business and scale up without taking any huge financial risks.
How to Register Your Import Export Business
Starting an import export business in India requires a proper legal registration and documentation. Without any right paperwork or documents, you can’t import or export the products internationally.
To establish a legitimate import export business, you need to register as a legal business entity in India.
- Sole Proprietorship – It’s Suitable for small traders who looking for an easy setup.
- Private Limited Company – Best for people to start large-scale operations.
- Limited Liability Partnership – Ideal for businesses with multiple partners.
- One-Person Company – For individuals who want company status with Limited Liability.
- Limited Liability Company – It’s more suitable for a company looking at international expansion.
Importer Exporter Code
An Importer Exporter Code (IEC) is a mandatory thing to start a import-export business in India. Without the IEC code, you can’t legally trade the goods internationally.
- Visit the DGFT Website – Go to the official DGFT website and create a new application for an IEC.
- Fill in Your Business Details – Provide details such as business name, PAN card, Bank Account and address proof.
- Upload Required Documents – You’ll need a scanned soft copy of your PAN card, Aadhaar card (for individuals) and company registration proof (if applicable).
- Pay the Nominal Fee – The government charges a small fee of around ₹500 for IEC registration.
- Receive Your IEC Code – Within 2-3 days, you will receive your IEC number via your registered email.
Once you have the IEC Code, you can start importing and exporting goods all around the world without any legal restrictions.
Understand GST, Customs Duties and Other Regulations
Taxes and duties play a significant role in the profitability of an import-export business as well as a negative role. It depends on how you handle the rules and regulations. The things you need to know:
GST Registration
- Each and every business in India Should register GST (not only for import and export business).
- You’ll receive a GSTIN (Goods and Services Tax Identification Number) which is required for tax filings to run your business legally.
- Exported goods are zero-rated under GST, It means that you don’t need to pay GST, but you may need to claim a refund.
Customs Duties & Compliance
- Import Duties: If you’re importing goods into India from foreign countries, customs duty may vary depend on the product category and country of origin.
- Government Incentives: The Indian government offer tax benefits and duty refunds to exporters who comes under schemes like RoDTEP (Remission of Duties and Taxes on Exported Products).
- Foreign Exchange Regulations: Under FEMA (Foreign Exchange Management Act), all payments must be routed through authorized banks to prevent fraud.
Navigating these regulations might seem overwhelming at first, but hiring a customs broker can simplify the process.
Government Incentives for Export Products
Indian Government promote exports through various schemes to reach Indian products worldwide.
- RoDTEP (Remission of Duties and Taxes on Exported Products).
- Advance Authorization Scheme – Allows duty-free import of inputs for export production.
- Export Promotion Capital Goods (EPCG) Scheme – Reduces costs for capital goods used in export production.
How to Find Profitable Products for an Import Export Business
Choosing the right products is going to write your business story.
First Analyze the Market Demand and Research what products have a high demand both in India and globally. Study the Trade Trends by using the Government website, like EXIM Bank (Export Import Bank of India) and DGFT (Directorate General of Foreign Trade) will provide a data on trending products.
You can start a business by using trends & Demands. Currently, the most profitable export business in India is like
- Textile and Apparel – Indian cotton and handloom products are a huge demand in Europe and the USA.
- Electronics – Software Services from India are growing exponentially.
- Pharmaceuticals – India is one of the Leading exporters of general medicines.
How to Find Buyers & Suppliers for Import Export Business?
A successful import export business depends on building strong global connections with good, reliable buyers and suppliers to avoid fraud and operate your business smoothly.
How to Find Trusted Suppliers for Importing?
- Use B2B Platforms: Websites like Alibaba, Global Sources, and TradeIndia help connect with verified suppliers.
- Visit Trade Fairs & Exhibitions: Attending global trade events helps you to establish direct relationships with manufacturers.
- Request Samples & Verify Credentials: Before making a bulk order, test the product quality by ordering few quantity and check business licenses and certifications.
How to Find International Buyers for Exporting?
- List your Products on Export Market Platforms such as Amazon Global, eBay, Etsy and other platforms which help you to reach global customers.
- Leverage LinkedIn to build a network in your business industry by connecting with overseas distributors via LinkedIn can generate a long-term business deals.
- Register your business on Indian Government Portals, and also in IndiaMART, and Export Promotion Councils provide access to foreign buyers.
Pro Tip: Verify the financial credibility of buyers by requesting trade references or conducting a background check through agencies like Dun & Bradstreet.
Marketing & Shipping Your Products
Marketing Plays an important role in attracting international buyers. Some strategies, like Selling Products on B2B platforms like
- Amazon
- eBay
- Alibaba and more for global exposure
Using Digital Marketing by doing SEO, Social Media Marketing and email campaigns to build a strong brand promotion.
Build a professional website with product catalogues to increase your credibility.
After all those marketing and Sales, you need to ship the products.
Managing international shipping is a critical part of the import export business. Here’s what you need to know about shipping:
- Freight Forwarders – Hiring a freight forwarder simplifies the shipping process.
- Air Vs Sea Shipping – Air Shipping is Expensive But faster, While Sea Shipping is Cheaper but slower.
- Customs Documentation – Make sure all the Invoices, Packing lists, and shipping bills are in the correct order to avoid delays.
Payment Process in Import Export Business
Sending & Receiving a payment securely is crucial for businesses for long-term stability.
- Letter of Credit (LC) – Guarantees payments from banks.
- PayPal & Stripe – Suitable for small transactions
- SWIFT Bank Transfer – An Idea for large transactions with verified clients.
- Escrow Services – Adds an extra layer of security.
Learn about currency exchange tips to maximize your profits
- Use Forex Hedging to protect against currency fluctuations.
- Choose low-cost payment Gateways to reduce transaction fees.
Conclusion
Starting an import export business in India is challenging but rewarding. If you follow the right legal steps, choose profitable products and build strong networks, now you can create a successful global business.
The opportunities are endless Take the first step today and make your mark in international trade.