How to start export business in India: steps, costs, rules

The quick answer

To start an export business in India, decide first whether you will make the goods yourself (a manufacturer exporter) or buy them from Indian makers and sell them abroad (a merchant exporter). Then pick one product and check its 8-digit ITC-HS code and export policy, set up the firm with a PAN and a current account with a bank that handles foreign exchange, get an Importer Exporter Code (IEC) from DGFT, register for GST and file a Letter of Undertaking so you can export without paying IGST, and join the export promotion council for your product (RCMC). Before you ship, work out a costing sheet on the Incoterm you will quote, agree payment terms that protect you (advance or a letter of credit for a new buyer), and line up a customs broker and freight forwarder. The registrations take a few weeks. Finding the first buyer usually takes much longer, so start that work at the same time.

This guide follows the order in which a new exporter actually meets each task, using DGFT's own handbook, the GST portal and RBI's rules, plus Starleads' counts of exporters, freight forwarders and suppliers in India. It does not repeat the form-by-form detail of the IEC and RCMC applications: our IEC registration guide and RCMC guide cover those. It is about how the pieces fit together, what they cost you in time and money, and the mistakes that sink first shipments.

Manufacturer exporter or merchant exporter: decide this first

DGFT's handbook "How to Export: A practical guide", published under its Niryat Bandhu scheme, describes two ways in. A manufacturer exporter makes the goods and sells them abroad. A merchant exporter, which the Foreign Trade Policy 2023 (para 11.33) defines as "a person engaged in trading activity and exporting or intending to export goods", has no factory: it buys from Indian manufacturers, and the goods go out in the merchant exporter's name, not the supplier's. The handbook notes that a merchant exporter has to register on the GST portal to get the benefit of export incentives.

The choice changes almost everything that follows. The table compares the two on what matters when you start.

Most first-time exporters who ask how to start an export business from home or with low investment are describing the merchant route. It needs less money, but it lives or dies on two relationships: a supplier who keeps quality and dates, and a buyer who trusts you rather than the factory. Put a written supply agreement in place with the manufacturer before you share buyer details.

Choosing the product and the market

The handbook's advice is that an overseas market should be chosen after research into market size, competition, quality requirements and payment terms, and that demand, distance, freight, free trade agreements and access all matter. It points to DGCI&S trade data, export promotion councils and Indian missions abroad as sources. Four checks narrow the choice quickly.

1. Find the 8-digit ITC-HS code. India classifies goods under the ITC-HS system, which follows the international Harmonized System. Every later step uses this code: export policy, the shipping bill, incentive rates and the buyer's import duty.
2. Check the export policy for that code. DGFT's handbook says goods are freely exportable unless they appear as restricted (an export licence is needed first), prohibited (cannot be exported at all), or reserved for State Trading Enterprises (exported only through designated STEs). Check your own code rather than assuming: the policy is set item by item.
3. Check the buyer country's rules. Food, agricultural, fishery and certain chemical products face compulsory pre-shipment inspection, and agricultural goods need a phytosanitary certificate, according to the handbook. The importing country may add its own standards and labelling rules.
4. Check the trade agreement. The handbook counts 13 free trade agreements and 6 preferential trade agreements signed by India. A lower import duty in the buyer's country under one of them can be the difference between a price that works and one that doesn't, but you need a certificate of origin to claim it.

Pick something you can describe in detail. Overseas buyers test a new supplier with questions about grades, tolerances, certifications, minimum order quantity and lead time; an exporter who cannot answer is dropped after the first email. Our guide to finding export buyers covers how to research which countries import your product.

Registrations, in the order you need them

Each registration depends on the one before it: DGFT needs a PAN and a bank account in the firm's name before it will issue an IEC, and the GST portal needs a GSTIN before you can file an LUT. This order avoids rework.

Two points that new exporters miss:

• File the LUT every financial year. The GST portal marks an LUT as expired at the end of the year it was filed for. A shipment made in April on last year's LUT can leave you owing IGST. The portal also says a person prosecuted for tax evasion of ₹2.5 crore or more cannot use an LUT. Without one, you pay IGST on the export and claim it back as a refund, which locks up cash.
• Udyam registration is optional but useful. It does not replace any export registration, but some bank and government support for small firms asks for it. Our Udyam registration guide explains the steps.

How much capital does an export business need? The costing sheet

There is no single figure. The money you need depends on the size of the first order, the payment terms you agree and how long the money is out. DGFT's handbook says the price should take in every expense "from sampling to realization of export proceeds" on the basis of the terms of sale, and advises a costing sheet for every product. Build yours on the Incoterm you will quote.

Incoterms 2020 has 11 terms: seven for any mode of transport and four for sea and inland waterway (FAS, FOB, CFR and CIF), as the handbook sets out. A new exporter usually quotes FOB (the seller's costs and risk end when goods are on board the vessel at the Indian port) or CIF (the seller also pays sea freight and insurance to the destination port). The handbook notes that under CIF the exporter arranges marine insurance, while under FOB and CFR the buyer usually does.

The table below is an illustrative costing for one container of a merchant export, built from assumed numbers to show the method. It is not a quote: replace every line with figures from your supplier, forwarder and bank.

The working capital question is then how long that money is out. If the buyer pays 30% in advance and the rest against documents, you need roughly 70% of the FOB cost until the balance arrives. If the buyer wants 60 days' credit after shipment, the money is out for the production time plus transit plus 60 days. Two kinds of bank finance help, according to DGFT's handbook: packing credit before shipment, granted to new exporters against a letter of credit or a confirmed order for up to 180 days, usually 75% to 90% of the order value; and post-shipment finance, normally up to 90% of the invoice value, for up to 180 days from shipment. A first exporter without a track record should expect the bank to ask for a confirmed order or LC before lending.

Keep the exchange rate in mind. Quote in US dollars or the buyer's currency with a validity date, and price at a rate below today's market rate so a small move in the rupee does not wipe out your margin.

Getting paid: payment terms, ECGC and RBI's rules

Most first-time export losses come from payment, not shipping. DGFT's handbook names full or partial advance, letters of credit and documentary collection as the common low-risk terms. The table ranks them for an exporter.

Insure the risk with ECGC. ECGC Ltd, owned by the Government of India and set up in 1957, insures exporters against non-realisation of export proceeds for commercial or political reasons, according to DGFT's handbook. The handbook advises getting a credit limit on the foreign buyer from ECGC whenever the buyer orders without paying in advance or opening an LC.

Bring the money home on time. RBI's Master Direction on export of goods and services sets a period within which the full export value must be realised and repatriated to India. For years it was nine months from the date of export; RBI amended the rules by notifications in November 2025 and June 2026, so ask your AD bank which period applies to your shipment on the day you ship. The same direction says that if you receive an advance, the goods must be shipped within three years of receiving it. Your bank reports each shipment against its payment, and DGFT's handbook says the bank issues an electronic Bank Realisation Certificate (e-BRC), the proof that the buyer paid. Keep it with the shipping bill for each export.

Shipping your first order: documents and incentives

Once the buyer confirms, DGFT's handbook sets out the sequence: confirm the order and sign a contract that states the items, specifications, payment terms, packing and delivery date; procure or make the goods strictly to the buyer's specification; inspect; arrange finance; label, pack and mark; insure; file the customs documents; and ship on time. Labels should be in English, with the country of origin as prominent as any other English wording, and should carry the shipper's marks, weights, package numbers and handling marks, the handbook says.

The documents the handbook lists for an export from India are:

• Proforma invoice, sent before the order, often to collect an advance.
• Purchase order from the buyer confirming goods, price, currency and shipping details.
• Commercial invoice cum packing list, now a single document for Customs.
• Shipping bill, filed electronically on ICEGATE; goods cannot be shipped without it.
• Bill of lading or airway bill, issued by the carrier as receipt and contract of carriage.
• Certificate of origin, needed to claim lower duty under a trade agreement.
• Bill of exchange and letter of credit, where the payment terms use them.
• Inspection, phytosanitary and fumigation certificates, where the goods or the buyer require them.

A licensed customs broker files the shipping bill and handles the port, and a freight forwarder books space with the shipping line. Many firms do both. Our freight forwarders guide explains how to check a customs broker's licence and compare quotes.

Export incentives. Under the RoDTEP scheme (Remission of Duties or Taxes on Export Products), in force for exports from 1 January 2021, exporters get back embedded central, state and local taxes, such as electricity duty and VAT on fuel, that are not refunded in any other way. DGFT's handbook says CBIC runs it in an end-to-end IT system with no separate application, and that rates are listed product by product in Appendix 4R. Duty drawback refunds customs duty paid on imported inputs. Both are claimed through the shipping bill, so tell your customs broker before filing; a claim missed on the shipping bill is hard to recover later.

Samples. The handbook notes that under the Foreign Trade Policy 2023, bona fide trade and technical samples of freely exportable items can be exported without any limit. Sending good samples quickly is often what wins the first order.

Finding suppliers, service partners and buyers: what Starleads' data shows

An export business needs three groups of contacts: Indian suppliers (for a merchant exporter), service partners at the port, and overseas buyers. Starleads' data helps with the first two, and with studying the competition. The figures below are counts of contacts in Starleads' data, compiled from business directories and checked on 2 November 2026, not an official census of Indian exporters.

• Exporters already in business. The Exporters list has 1,75,373 contacts in 485 cities, 71% with a mobile number and 85% with an email address. The most are in Maharashtra (60,790), Delhi (30,704) and Tamil Nadu (13,731). By city, the Mumbai list leads with 49,256 contacts, followed by Bengaluru (11,460) and Chennai (8,049), with Kolkata (6,301) and Pune (6,070) next, according to Starleads' Insights figures. One caution: the directory category recorded for 97,819 of these contacts is "Paper Importers & Exporters", so filter by category in the free sample before you assume the list is spread evenly across products. A new exporter uses this list to see who already exports a product from a city, and a merchant exporter can approach established exporters for subcontracted or overflow orders.
• Freight forwarders and customs brokers. The Freight Forwarders & Customs Clearing Agents list has 15,699 contacts in 101 cities, 75% with a mobile number and 46% with an email address, most in Maharashtra (4,338), Delhi (2,392) and Tamil Nadu (1,540). Ask three for quotes on the same shipment before choosing.
• Packaging. Export packing is a cost line of its own. The Packaging & Printing list has 64,524 contacts across 279 cities; our packaging companies guide covers how to choose one.
• Suppliers for merchant exports. Manufacturer lists by industry help a merchant exporter find two or three makers to compare. For example, the Textiles & Fabrics list has 35,537 contacts and the Spices & Dry Fruits Traders list 5,798. Our manufacturing companies guide covers the main industrial hubs.
• An accountant who knows exports. LUT filing, IGST refunds and RoDTEP claims are easier with a CA who handles exporters. The Chartered Accountants & Tax Consultants list has 47,994 contacts, 97% with a mobile number.

Live today: the Exporters in India list has 1,75,373 businesses in 485 cities, 71% of them with a mobile number and 85% with an email address. The biggest city lists:

• Mumbai 49,256 contacts · 82% email · 67% mobile ₹499
• Bengaluru 11,460 contacts · 80% email · 96% mobile ₹499
• Chennai 8,049 contacts · 86% email · 54% mobile ₹499
• Kolkata 6,301 contacts · 92% email · 69% mobile ₹499
• Pune 6,070 contacts · 89% email · 80% mobile ₹499
• Ahmedabad 5,520 contacts · 93% email · 95% mobile ₹499
• Gurugram 5,433 contacts · 93% email · 89% mobile ₹499
• Hyderabad 5,320 contacts · 89% email · 66% mobile ₹499
• Noida 4,665 contacts · 91% email · 85% mobile ₹499
• New Delhi 4,323 contacts · 85% email · 6% mobile ₹499
• Jaipur 3,382 contacts · 78% email · 68% mobile ₹499
• Faridabad 2,147 contacts · 92% email · 72% mobile ₹499

Related lists for exporters

• Freight Forwarders & Customs Clearing Agents 15,699 contacts · 46% email · 75% mobile ₹1,999
• Packaging & Printing 64,524 contacts · 63% email · 88% mobile ₹1,999
• Chartered Accountants & Tax Consultants 47,994 contacts · 83% email · 97% mobile ₹1,999
• Textiles & Fabrics 35,537 contacts · 50% email · 63% mobile ₹1,999

Where Starleads falls short: it sells contacts of businesses in India, not of importers abroad, so it will not hand you overseas buyers. For those, use your export promotion council, trade fairs, Indian missions and B2B portals, as our export buyers guide describes, and the free government trade data covered in our import-export database guide. Every Starleads list page shows 60 real sample rows free. A city, state or specialisation list costs ₹499, and bulk data for one industry across India costs ₹1,999, plus 18% GST at checkout. Directory data is never complete and some numbers will have changed, so treat a list as a starting point for calls.

Calling and messaging Indian suppliers and partners. When you contact Indian businesses by phone or SMS, TRAI's rules apply. Many mobile users have registered on the DND register (NCPR) to block commercial calls and messages, so check numbers first, as our DND check guide explains. Anyone sending bulk SMS must register on the operators' DLT platforms, with registered headers and templates; see our DLT registration guide. Message on WhatsApp only people who have agreed to hear from you. One-to-one calls to a supplier about a specific product are ordinary business; mass promotional calling from personal mobiles is what the rules target. Emails to overseas buyers fall under the buyer's country's laws on commercial email, so send few, relevant messages and honour every request to stop.

Starting an export business, step by step

1. Choose the route: manufacturer exporter or merchant exporter.
2. Pick one product, find its 8-digit ITC-HS code, and confirm in DGFT's export policy that it is free, not restricted or prohibited.
3. Shortlist two or three importing countries using trade data, your export promotion council and India's trade agreements.
4. Set up the firm: structure, PAN, and a current account with a bank branch that handles foreign exchange.
5. Get your IEC on the DGFT portal (see our IEC guide).
6. Register for GST and file the LUT in Form RFD-11 for the current financial year.
7. Join your export promotion council and get the RCMC (see our RCMC guide).
8. Line up suppliers (for merchant exports) with written prices, quality specifications and delivery terms.
9. Build a costing sheet on FOB and CIF, with a cautious exchange rate.
10. Prepare samples and a catalogue: specifications, photos, MOQ, lead time, packing and payment terms.
11. Find buyers through councils, trade fairs, missions and portals, and answer every enquiry within a day.
12. Agree safe payment terms for the first order: advance or an LC; get an ECGC limit if you give credit.
13. Choose a customs broker and forwarder, register the AD code at your port, and tell them which incentives to claim on the shipping bill.
14. Ship, collect and close: track the payment until your bank reports it realised, and keep the e-BRC.

Mistakes that sink first export orders

• Quoting before costing. A price sent in a hurry without freight, bank charges and packing often turns into a loss once the order arrives.
• Shipping on credit to a new buyer. D/A or open account terms with an unknown buyer are the most common way first exporters lose money. Ask for an advance or an LC, or get ECGC cover.
• Documents that don't match the LC. Banks pay against documents, not goods. A spelling difference or a late shipment date can delay or stop payment.
• Forgetting the LUT renewal. It expires with the financial year.
• Missing incentives on the shipping bill. RoDTEP and drawback are claimed when the shipping bill is filed.
• Trusting a single supplier. Merchant exporters should qualify a second supplier before the first big order.
• Paying for "guaranteed buyers". No list, portal or consultant can guarantee export orders. Buyers come from samples, follow-up and reliable delivery.

Questions people ask

How much capital do I need to start an export business?

It depends on the first order and the payment terms. Add up the costing sheet for one order, then work out how long the money is out between paying your supplier and receiving the buyer's payment. A merchant exporter who takes a 30% advance and the balance against documents needs far less than a manufacturer who gives 60 days' credit. Packing credit from banks can cover 75% to 90% of a confirmed order, according to DGFT's handbook.

What is an export licence in India?

There is no general "export licence". Every exporter needs an IEC from DGFT. A separate licence is needed only for goods on the restricted list of the ITC-HS export policy; prohibited goods cannot be exported at all, and some items can only be exported through State Trading Enterprises.

Can I start an export business from home?

Yes, as a merchant exporter. The firm needs an address for its PAN, GST and IEC, which can be your home address if the rules for your premises allow it. The goods ship from the supplier's unit or a warehouse, not from your home.

Is IEC enough to start exporting?

It is the one registration no exporter can skip, but you also need a current account with an AD bank, GST registration with an LUT if you want to export without paying IGST, and in practice an RCMC to claim many Foreign Trade Policy benefits.

How do I find my first export buyer?

Through your export promotion council, trade fairs and buyer-seller meets, Indian missions abroad, B2B portals and a website with a clear catalogue, as DGFT's handbook suggests. Our export buyers guide goes through each.

How is an export business different from a domestic trading business?

The selling, pricing and payment are different: you quote on Incoterms in foreign currency, ship through Customs, and must bring the money back to India within RBI's time limit. The supplier side is much the same. Our guide to starting a trading business covers the domestic side.

Does Starleads sell lists of overseas importers?

No. Starleads sells contact lists of businesses and professionals in India: exporters, importers, manufacturers, freight forwarders and others. It does not sell lists of foreign buyers or of private individuals.