A Practical Guide on How to Start Exports Business From India?

Reading Time: 8 minutes

Exports Business is a Multi-Million-dollar business & which has a sea of opportunities, every country you look at, you find an opportunity. Exports business in simple words is trade along the long distances. In early ages people started to trade with other countries is to Fulfil the daily needs, as the home country couldn’t produce the product and they were dependent on other countries product to arrive in their country.

All the countries under the sky  are involved directly or indirectly in Exports or imports business as per their needs A other example to look is One country is rich in agriculture and the other country is rich in technology, Natural resource , Capital which allows the countries borrow each other’s resources in order to Fulfill the human needs.

What is Exports?

The definition of “Exports” Is Selling of Home country’s Goods / Services to a Neighbouring country or a far away country in exchange of a payment in Foreign currencies, other than their home country Currency is called Exports. The only difference between Service Exports & Product exports is, In service exports you just move the invoice to get Inward remittances and in product exports you move the product & invoice to get inward remittances.

Types of Exports

In exports you can be either of the following:

  1. Merchant Exporter
  2. Manufacturer Exporter
  3. Service Exporter.
  4. E- Commerce (Drop shipping)

Why to start Exports business from india?

  • Better Profits / Margins

Better profits / Margins are expected when we try selling the goods to a long distance. Margins in exports is directly proportional to the volume of the business.

  • NO GST

An excellent setback for anybody who are looking to get rid of paying local taxes and get their cash flows chucked in the local markets. The merchant exporters if they are procuring the goods from local market, they are liable to pay 0.1% tax and even this tax gets rebated. ( As per the Current Update 2019-2020 )

  • Payment Security

Any Business get to knock out stage in business is due to the defaulters, in exports business you are saved by Ministry of commerce, if you are dealing as per the Govt. Norms you can still retrieve it.

  • Export Incentives

Its an Immense feeling when you get bonuses that too by our government. So, yes you get Incentives for the products that we export because we help our Govt. to Earn forex currencies.

  • To show culture

Its one of the way where we showcase our culture through the product which we export.

  • To explore New markets & travel destinations.

Opportunity to grab knowledge of supply and demand in other countries, as many of us to into this trade to travel all across the globe, to explore how they lead the life, their culture & business.

What is the Minimum investment required to start Exports business from india?

This is one of the most important & serious query that people have in their minds, before they get started in this journey. You don’t need billions of dollars to start this seriously. Monetary requirement also depends on the Product you choose and the volumes of container which you would like to do per month. Starting a Exports business without a investment is a myth which is rolled around in the market, unless your buyer pays you in 100% advance which is insane thoughts being a start-up. You don’t need to be a manufacturer / producer to do exports, you can still keep the balls rolling if you have good source of them.

What are the License required in Exports Business?

In order to form an Export company in India, please note the following step by step licenses which you require in order to operate a Exports & imports company in India:

  3. EPC (Export promotion council) – As per the product which you choose to export.
  4. PORT Reg.
  5. FSSAI (If you are dealing in Food / Agri industry)

How to start Exports Business from India?

Step 0 : Gain Practical Working Knowledge.

Knowledge is power in any industry. Get knowledge on how to start exports business, not just surfing Nets, of course you get many Guru’s & Mentors. As you know, many say this – Two cooks spoil the food. So being a Start-up you need to choose one mentor or you should be enabling yourself to grasp knowledge and keep yourself updated. Foundational knowledge is very important. If you are eager to start this trade don’t spend more than 5-10k as ultimately you want to kick-start the business.

Step 1: Choose the product you want to export

Before you start exporting you need to be exposed to what you are selling, as many start-ups don’t really know what to sell in the market. This is really a very serious step to choose your Niche about what you want to sell in the global market. On a broader view, as per my experience I would advise start-ups to work on Agricultural goods, Apparels, Handicrafts – As this product doesn’t require technical subject knowledge that you need before you export, whereas Pharmaceuticals / Chemicals you require technical subject knowledge in order to venture in. In simple words, please check the data and analyse which is the product which goes in Volumes from India and if you are in a monopoly category, you have your own market, just that you need to bring it on in the market. The product you choose should have good volumes, you need to work on the product knowledge too, as its very important to know what you sell or before you pitch it to the buyers.

Also, Check out my article on How to Start Onions Exports https://eximsanthosh.com/2020/05/07/start-onions-exports-india/

Step 2: Market selection

After choosing the product, we need to ascertain the fact of which country imports the most of this product. While selecting the market, we need to also study about which from which other countries does this country import the same product from and what is the Difference between our product and their product. Sometimes, we fail to understand this fact & just chant that our country is a leading exporter etc. When you analyse it you get a deeper understanding about how your target market is going to move on for the next few years, if it’s a threat, you should start working with the next country.

Step 3: How to Get Buyers in Exports Business?

This is One of the Most Important & this is the step where the actual money is.There are three ways to generate the Business for you which enables you start your trade. 1. Attend buyer – seller meets in india & Other countries organized by Ministry of Commerce . this is one of the space where you get the credibility certificate ( Ofcourse when you route yourself through govt). You will be made sit across the table with the buyers, now its your skills to crack the deals. 2. E-commerce, If you are into B2C, Amazon.com is one the leading E-commerce platform to do the trade, opt for B2B portal, If you have a monopoly in products you should start Drop – shipping directly from your websites. 3. Digitally, Most of the start-ups fail to generate the business, because they don’t approach the customers where they are. Let’s say for e.g. I am put up in Bangalore and I want to sell my goods in Delhi, in order to sell my stuffs in Delhi I need to identify where my target audience are in Delhi and start approaching them , convincing them keep rolling the ball until the leads gets converted into business. Since we are in the Digital era now, you can use tons of tools in social media to track, know the audience, extract their information’s, start connecting. Of course, the one on one meeting cannot be replaced by anything, as its one of the best Practices to crack the deals and generate Business on a short span of time.

Step 4 : Give Quotations & Get the Purchase order.

After generating the buyer, Or knowing your actual buyer, You have quote the best & Competitive rates, First impression is the best impression. The workout over here should be as per the shipping term that your buyer is expecting. This is the step where you get into a situation of Do or Die. Quotations should be highly competitive, you can also refer the previous data to have stats at what price people have been exporting this product to that particular country, this study helps you to give a better costings of course it wont be applicable to commodity as it keeps fluctuating everyday.

Step 5: How to Procure Goods in Exports Business?

Procurement has three stages- Market analaysis, Quality Control & Supply chain management.

Market analysis: You need to check the largest market / mandi / manufacturing unit of that particular which can be procured as per the buyer’s requirement. Market analysis involves you to study the various markets & countries from where you can procure the goods. Without knowing which market procure you would be Mind blocked, so that’s the reason niche clarity is important, so when you choose a product you obviously have to understand where the market is of that product.

Quality Control: I define Quality in this trade is directly proportional to the specifications of the buyer’s requirement, Be honest & you will be saved.

Supply chain Management: The supply chain planning is a very important to execute orders, when you fail to plan you fail to execute the orders, it’s all about checking relevant quantity available to procure at one shot. In this stage, we need to access the quantity, price & quality all these aspects should go hand on hand in order to work on the procurement aspects.  

Step 6: What are the Documents required in Exports Business?

This is utmost important to comply with the Government authorities to export. The general exports documents are Invoice, packing list, Certificate of origin Rest documents it all depends upon the product which you export & the country which you export & Of course as per your buyer’s requirements. Don’t ever try to execute the orders without having a proper document in your hand, you will be literally put to hell.

Step 7: Shipping & Logistics in Exports

Logistics & shipping are the other end of the work which a exporter has to plan in order to process the orders with PUNCTUALITY. You can’t supplying the goods without a strong plans, if you aren’t able to process the orders within the stipulated time, its equivalent to recurring a loss for you and buyer. The logistics of onions are to be done only by the shipping company who have previously handled onions consignment. There are two parts over here when comes to shipping & logistics: 1. Customs clearance. 2. Shipping . Both are handled by the different divisions in the shipping companies. In customs clearance, CHA (Customs House Agent) takes the hand in Clearing your goods as per the customs norms, In shipping, the vessels or liners comes into the picture to ship your goods to the destination. In this step, Don’t ever try to negotiate the time frame, Be quick & deliver your goods to port in order to get your process done before the CUT – OFF Period, never handle the shipments under pressure, it will cost your Life. Plan it wisely before you take up the order and start executing withing time frame. Otherwise your Shipping company woudnt be able to ship in the prescribed schedule as they lack experience . For Eg. If your ship is Sailing on sunday the cut off would be on Friday , Friday Morning the Goods should be given to your Shipping company ( If he is asking the goods 3 or more days before the sailing day, he is a Fishy Shipping company ).Get the Quotation & container booking , as the chances are there due to the demand the prices also fluctuates .


The best time to Kick – start Exports Business is right today, Off course we cannot work on all the requirements globally , but we definitely work on as per our capacity.

Let me know about your Journey in Exports Business below in the comment box.

1 thought on “A Practical Guide on How to Start Exports Business From India?”

Leave a Comment