GimBooks Blog

How to Start an Export Business in India - A Complete Startup Guide

Vikash -

How to start an export business in India is a question many small business owners ask today. With global demand rising for Indian products, this is the right time to explore the export business in India. From handmade goods to food items and textiles, Indian products are in demand across the world.

The good news is that starting an export business is not as hard as it looks. With the right steps, basic documents, and clear planning, even a small or micro-sized business can go global.

This informative blog will help you understand how to start an export business in India, the documents you need, the costs involved, and how to grow step by step.

Why Start an Export Business in India Today?

India is one of the fastest-growing export markets in the world. Many countries buy Indian spices, garments, leather products, engineering goods, and more.

India’s export sector is already large and continues to expand. In FY 2024-25, the country’s combined exports of goods and services reached around $825 billion, with merchandise exports at $437.5 billion and services exports at $387.5 billion.

Here’s why starting an export business in India makes sense:

  • Huge global demand for Indian products.
  • Government support and export schemes.
  • Low startup cost compared to many other businesses.
  • Easy digital tools to connect with buyers.
  • Growing demand for Indian MSME products.

If you are wondering if export business is profitable in India, the answer is yes. With proper planning and cost control, profit margins can be higher than local sales because you earn in foreign currency.

Understanding How Export Business Works in India

Before you learn how to set up an export business in India, you must understand how the export business works in India.

Here is the simple process:

  1. You find a product that has demand outside India.
  2. You register your business and get the required licenses.
  3. You find an international buyer.
  4. You agree on price, quantity, and payment terms.
  5. You ship the goods.
  6. You receive payment in foreign currency.

Banks convert the foreign payment into Indian Rupees and credit it to your account.

That’s the basic structure. The rest is about documentation, quality control, and timely delivery.

Step-by-Step Guide on How to Start an Export Business in India

The following are the key steps you need to follow to start an export business in India :

1. Choose the Right Product

The first step in how to start an export business in India is selecting the right product.

Ask yourself:

  • Is there global demand for this product?
  • Can I produce it consistently?
  • Can I maintain quality standards?

Some of the most profitable export businesses in India include:

  • Spices and food products.
  • Handicrafts.
  • Textiles and garments.
  • Leather goods.
  • Organic products.
  • Engineering goods.

Research markets like the US, UAE, UK, and Europe to see what they import from India.

2. Register Your Business Legally

To begin an export business in India, you need to register your business.

You can choose:

  • Sole Proprietorship
  • Partnership
  • LLP
  • Private Limited Company

After registration, apply for:

These are basic requirements before you move ahead with exports.

3. Apply for Import Export Code (IEC)

If you are learning how to start an import-export business in India, getting an Import Export Code (IEC) is mandatory.

IEC is issued by the Directorate General of Foreign Trade (DGFT). Without this code, you cannot export goods from India.

The process is simple and online. Once approved, you can start international trade.

4. Open a Business Bank Account

To start an import and export business in India, you must have a current account in a bank.

Choose a bank that offers:

  • Easy foreign payment handling.
  • Low conversion charges.
  • Export support services.

This helps in smooth international transactions.

5. Select the Right Export Market

One of the most important parts of how to set up an export business in India is choosing your target country.

Research:

  • Import demand
  • Competitors
  • Pricing
  • Government regulations
  • Shipping costs

For example, Indian spices are highly popular in the Middle East and Europe. Handicrafts do well in the US and UK markets.

6. Find International Buyers

Now comes the key part of how the export business works in India, finding buyers.

You can find buyers through:

  • Trade fairs
  • B2B websites
  • Export promotion councils
  • Government portals
  • Direct email marketing

Many exporters use the best export business platform in India, like IndiaMART, TradeIndia, and global platforms such as Alibaba, to connect with buyers.

Start small. Build trust. Deliver quality.

7. Understand Export Pricing

Pricing is very important in an export business in India.

Your export price should include:

  • Product cost
  • Packaging cost
  • Shipping cost
  • Customs duties
  • Bank charges
  • Profit margin

If you price too high, buyers may not choose you. If you price too low, you may lose profit.

Proper bookkeeping and cost tracking are important here.

8. Arrange Logistics and Shipping

When you understand how to start an export business in India, logistics plays a big role.

You need:

  • Freight forwarder
  • Customs clearance agent
  • Shipping company

Goods can be shipped by:

  • Air
  • Sea
  • Road (for nearby countries)

Choose based on product type and urgency.

Documents Required to Start an Export Business in India

For those searching for how to start an import export business in India, here are the common documents needed:

  • IEC (Import Export Code)
  • GST Registration
  • PAN Card
  • Bank Account
  • Shipping Bill
  • Commercial Invoice
  • Packing List
  • Bill of Lading or Airway Bill

Make sure all paperwork is accurate. Even small mistakes can delay shipments.

Is Export Business Profitable in India?

Many small business owners ask, " Is export business profitable in India?

Yes, it can be highly profitable because:

  • You earn in foreign currency.
  • Global markets are bigger than local markets.
  • Premium pricing is possible.
  • The government offers export incentives.

However, profit depends on:

  • Product demand
  • Cost control
  • Consistent quality
  • Strong buyer relationships

Start small and scale slowly.

What Is the Best Export Business in India for Small Businesses?

If you are looking for the best export business in India, here are some options suitable for small and micro-sized businesses:

  • Organic spices
  • Handmade jewelry
  • Cotton garments
  • Eco-friendly products
  • Ayurvedic products
  • Jute products

These products require low investment and have strong international demand.

Exploring Export Business Opportunities in India

India has many growing export business opportunities due to global demand.

Some fast-growing sectors include:

  • Processed food
  • Electronics
  • Chemicals
  • Pharma products
  • Furniture
  • Solar products

Government schemes also support MSMEs with subsidies and export benefits.

If you are serious about how to start an export business in India, keep checking DGFT updates and export promotion council announcements.

Managing Finances for Your Export Business

Running an export business in India means handling invoices, GST, payments, and foreign transactions.

For small and micro businesses, managing accounts manually can be confusing.

This is where GimBooks helps.

GimBooks is a cloud-based and mobile-first bookkeeping and business management platform designed for small businesses in India and the Middle East. It started as a simple invoice maker app and has now become an affordable, GST-compliant invoicing and accounting software.

With GimBooks, you can:

  • Create professional invoices.
  • Track expenses.
  • Manage GST compliance.
  • Monitor payments.
  • Keep financial records organized.

When you are learning how to set up an export business in India, proper bookkeeping is just as important as finding buyers.

Common Challenges in Starting an Export Business

While learning how to start an import and export business in India, be ready for some challenges:

  • Delayed payments.
  • Currency fluctuations.
  • Quality complaints.
  • Customs delays.
  • Changing regulations.

The solution is planning, clear contracts, and proper documentation.

Tips for Success in How to Start an Export Business in India

Here are practical tips for small businesses:

  • Start with one product.
  • Focus on one country first.
  • Maintain consistent quality.
  • Keep records of every transaction.
  • Stay updated with export policies.
  • Build long-term buyer relationships.

Most successful exporters began small. They focused on trust and quality.

Wrapping Up

Learning how to start an export business in India is the first step toward building a global brand. The process may look complex, but if you break it into small steps, it becomes simple.

Choose the right product. Complete your registrations. Get your IEC. Find buyers. Manage your finances properly. Deliver quality every time.

There are strong export business opportunities in India for small and micro-sized businesses. With patience, planning, and the right tools, you can build a profitable global business.

If you have been thinking about starting an export venture, now is a good time to take the first step.

To know more, explore the GimBooks expert blog section!

Also check
How to Start a Pharmaceutical Company: Tips for Success in India [2026]

FAQs

What is the first step in starting an export business in India?

The first step in how to start an export business in India is choosing the right product with global demand. After that, you must register your business and apply for an Import Export Code (IEC). Without an IEC, you cannot legally export goods from India.

How much money is needed to start an export business in India?

The investment depends on the product and scale. A small export business in India can start with a low budget if you choose products like handicrafts or spices. Major costs include registration, packaging, shipping, and marketing.

Is export business profitable in India for small businesses?

Yes, whether export business is profitable in India is a common question, and the answer is yes if managed properly. You earn in foreign currency, and global markets are larger than local markets. Profit depends on pricing, quality, and strong buyer relationships.

What documents are required to understand how to start an import export business in India?

To learn how to start an import export business in India, you need basic documents such as an IEC, a PAN card, a GST registration, a business bank account, a shipping bill, an invoice, and a packing list. Proper documentation ensures smooth customs clearance.

What are the best export business opportunities in India right now?

Some of the growing export business opportunities in India include organic spices, garments, leather goods, handicrafts, processed food, and eco-friendly products. These are considered among the best export business options in India for small and micro-sized businesses.