What an import export business really is
There are three common shapes, and the papers are nearly the same for all of them.
- A manufacturer exporter makes the goods and sells them abroad.
- A merchant exporter buys goods from Indian makers and exports them. The DGFT practical guide, How to Export, says a merchant exporter does not need its own factory. The Foreign Trade Policy defines it as a person engaged in trading and exporting, or planning to export, goods.
- An importer brings goods into India for sale, or as inputs for its own factory.
Services count too. The Foreign Trade Policy says an IEC is needed on the date you render a service if you want benefits under the policy. In 2025-26 India's goods exports were US$441.78 billion and its goods imports US$774.98 billion, so goods imports were larger by US$333.19 billion. Services exports were an estimated US$418.31 billion (Department of Commerce release, 15 April 2026, a first estimate that can be revised).
Step 1: Get your IEC
IEC code: what it is and where to apply
The IEC code, short for Importer-Exporter Code, is a 10-character number that the DGFT gives to a firm, company or LLP. Any export or import needs it. It is the same as your PAN, and you apply online only at the DGFT website, IEC profile management page. The DGFT warns that fake websites copy its site and take money for IEC certificates, so use only dgft.gov.in. You can verify any IEC under View IEC Related Details on the same site. Checked on 10 October 2026.
Three rules from the policy text are worth knowing now. One PAN gets one IEC. The IEC covers all your branches and factories. And you must update it online every year in April to June, or it can be deactivated. The fold below has the paragraph numbers.
Step 2: Join an export promotion council
Export promotion council: who they are
An export promotion council (EPC) is a body of exporters, set up with the government to promote one group of products, and it can issue your RCMC. Examples: AEPC (apparel), TEXPROCIL (cotton textiles), EPCH (handicrafts), GJEPC (gems and jewellery), Council for Leather Exports, Plexconcil (plastics), CHEMEXCIL (basic chemicals, dyes and intermediates) and Pharmexcil (pharmaceuticals). Food, tea and seafood are handled by government bodies such as APEDA, the Tea Board and MPEDA. The DGFT says a product that no council covers gets its RCMC from FIEO, the Federation of Indian Export Organisations. Pick the council for your main product. Checked on 10 October 2026.
Why bother? The policy says you must show an RCMC if you apply for an authorisation to import or export, or for any other benefit under the Foreign Trade Policy. Prospective exporters can join as associate members. Councils also run fairs and keep member lists, which help when you look for buyers.
Step 3: The other registrations
- GST registration, then a Letter of Undertaking. Under the IGST Act, section 16, export of goods is a zero rated supply. The GST portal says a registered person who exports without paying integrated tax must furnish an LUT, in Form GST RFD-11, before the export. Steps are in the GST portal guide. Read section 16 on the CBIC site. Ask your CA which route suits you.
- A current account with a bank that deals in foreign exchange. The DGFT guide says to open one. This is called an authorised dealer (AD) bank. Customs also has a page on registering the AD code and bank account, the ICEGATE advisory. Your bank or customs broker can walk you through it.
- Customs registration. The same DGFT guide says exporters need a PAN-based Business Identification Number from Customs before they file a shipping bill.
- Product rules. Some goods are restricted, or need a licence or a no-objection certificate. The policy says the regulator for such goods may ask for extra papers. Look up your product code on the DGFT site before you promise anything to a buyer.
A customs house agent can help with the customs steps. The DGFT guide says such agents are licensed by the Commissioner of Customs.
Step 4: The papers for each shipment
These are the documents that the Foreign Trade Policy 2023 calls mandatory. Others depend on your goods and your buyer.
| Paper | Used for | What to know |
|---|---|---|
| Commercial invoice cum packing list | Export and import | The policy lists them as one document, and says separate ones are also accepted. The packing list matters when a shipment holds more than one item. |
| Bill of lading or airway bill | Export and import | The transport paper. The carrier issues it as a receipt and as proof of the contract to carry the goods. |
| Shipping bill (bill of export) | Export | A customs paper filed electronically through ICEGATE. The DGFT guide says goods cannot ship until it is filed. |
| Bill of entry | Import | The customs paper for goods coming in. Duty depends on the product code, so ask a customs broker. |
| Certificate of origin | If the buyer or a trade deal asks | Shows where the goods were made. DGFT runs a certificate-of-origin service on its Trade Connect ePlatform. |
| Proforma invoice and purchase order | Before the order starts | The offer and the buyer's confirmation. Put price, quantity, delivery time and payment terms in them. |
| Inspection or test certificate | If the buyer asks | Buyers often want one before the goods leave. Ask early which tests they accept. |
The DGFT guide also lists the bill of exchange and the letter of credit. Banks ask for the set of papers after shipment, so keep copies of everything. These papers also feed your marketing. A buyer wants to see a sample invoice, a test report and your IEC before an order.
Step 5: How an order flows and how the money comes in
- The buyer asks for a quote. You send a catalogue and a proforma invoice.
- The buyer sends a purchase order. You agree price, quantity, delivery time, packing, who pays freight and when you are paid. Many trades use the Incoterms rules for the freight and risk part.
- You make or buy the goods, pack them and prepare the invoice and packing list.
- Your customs broker files the shipping bill. The goods go with a carrier, which issues the bill of lading or airway bill.
- You send the papers to your bank. The DGFT guide says to present them to the bank within 21 days of shipment, so check the current rule with your bank.
- The buyer pays through banks. Your bank records the payment and can issue an electronic Bank Realisation Certificate (e-BRC), which the DGFT guide says you need to claim export benefits.
The money rule is simple to say. The RBI Master Direction on export of goods and services was updated on 17 July 2026. It says an exporter must bring back the full value within nine months from the date of export, through an authorised dealer bank. It lists a few exceptions, so ask your bank. ECGC, a Government of India company, offers insurance for the risk that a buyer does not pay.
An importer's flow is the mirror image. You pay the overseas seller through your bank, the goods arrive, and you file the bill of entry and pay customs duty. Check duty and any import limit for your product code before you place the order.
Business ideas from the trade data
The table near the top shows what India sells. Imports tell the other half. These are the product groups India bought most in 2025-26, again by HS chapter, with what an importer who sells to Indian buyers should show.
| Product group (HS chapter) | India bought (US$ billion) | Change on 2024-25 | What Indian buyers expect to see |
|---|---|---|---|
| Electrical machinery and equipment (85) | 104.8 | +18.3% | Brand authorisation, model range, local service and a warranty |
| Machinery and mechanical appliances (84) | 74.0 | +15.1% | Spare parts stock, installation help, a trained service person |
| Animal and vegetable fats and oils (15) | 19.8 | +12.4% | Food approvals, batch tests, steady supply, pack sizes |
| Optical, medical and measuring instruments (90) | 15.4 | +10.9% | Calibration papers, demo units, training and repair |
| Fertilisers (31) | 14.6 | +76.0% | Supplier approvals, bag sizes and handling details. Few small firms play here. |
| Edible fruit and nuts (08) | 5.9 | +23.8% | Grade, origin, shelf life, cold-chain details |
| Furniture and bedding (94) | 2.0 | +14.3% | Photos, finish samples, delivery time and return terms |
Source: TRADESTAT commodity-wise import table, 2-digit HS level, 2025-26 against 2024-25 (data last updated 7 August 2026), read 10 October 2026. The 2025-26 import total in that table is US$775.71 billion.
How to read the two tables
Do not pick a product only because its group is big. A big group also means many sellers. A group that grew fast may have grown from a small base. Use the tables to see that real trade exists, then narrow down to one product code that you can make or source well.
Here are shapes of ideas, each tied to what you must show. These are starting points to research, not promises of profit.
- Parts and components for machinery and vehicles. Buyers want drawings, tolerances and test reports on one page of your catalogue.
- Garments and home textiles as a merchant exporter. Buyers want a line sheet, fabric details and factory audit papers. Compare with the apparel rows above.
- Seafood, spices, tea and coffee. Buyers want lab reports, approvals and the story of where the product comes from.
- Handicrafts, leather and furniture. Buyers want photos, finish samples and a clear minimum order.
- Importing machine spares, instruments or ingredients for Indian factories. Indian buyers want stock in India, quick service and a GST invoice.
- Sourcing for foreign brands, where you find Indian makers and handle quality checks for a fee. Buyers want proof that you visit the factory.
Say a small steel-fittings maker in an engineering town sells to local dealers today. The owner picks one family, such as stainless pipe fittings. The owner builds a catalogue with sizes and grades, and offers the three samples a buyer abroad asks for first. This is a made-up example. It shows the idea of going narrow.
Marketing an import export business
A buyer far away judges you on what they can see. Before you spend on anything else, get these five in order.
- A website that states what you make, where you ship and your IEC. See website design and development.
- A catalogue light enough to email, with product codes, sizes, minimum order and delivery time. See brochure and catalogue design.
- A short list of real buyers and a short message to each. Business-to-business (B2B) outreach on LinkedIn is one way. See LinkedIn B2B lead generation.
- A stall that explains your product from ten metres at a fair. See exhibition stall design.
- Fast answers. Reply to every enquiry within one working day.
Our page on marketing for exporters lists how we work with sellers abroad. The guide on how to find buyers for export, linked above, covers portals, trade fairs and checking a buyer before you ship.
Mistakes that cost new exporters money
- Starting with ten products and five countries.
- Promising a delivery date before you know the shipping time.
- Pricing without freight, packing, bank charges and duties.
- Shipping a large first order on open account to a buyer you have not checked.
- Forgetting the LUT before a shipment, or the yearly IEC update.
- Paying anyone who promises buyers, or any site that is not the real DGFT site.
- Treating the papers as someone else's job. Ask your broker to explain each one.
A note on where this guide stops
Rules change often. The Foreign Trade Policy, GST rules and RBI directions are updated, and fees change. We give no fee amounts, because we did not confirm any. Read the official pages in the sources list again before you act. To see how other models earn, read our guide to business models in India.
