How to start a goods export business in India
Why exporting goods from India is worth your attention right now
India's combined goods and services exports reached an estimated $825 billion in FY 2024-25, according to figures from the Ministry of Commerce. Merchandise exports alone crossed $437 billion that year. Global buyers actively source from India because of competitive pricing and strong product quality. If you have a physical product and want to sell beyond India's borders, the infrastructure to do so has never been more accessible. Registration is online. Payments can settle in a day. And government schemes actively reduce your costs.
This guide walks you through every step to start a goods export business in India. It is written for first-time exporters who want a clear, practical path, not a list of confusing acronyms.
Step 1: Understand how goods export works
Exporting goods means shipping physical products from India to a buyer in another country and receiving payment in foreign currency. The cycle looks like this: you identify a product, find a buyer abroad, agree on a price and payment terms, ship the goods, clear customs, and collect payment.
You can operate as a manufacturer-exporter (you make the goods yourself) or a merchant-exporter (you source from manufacturers and sell to foreign buyers). Both models are valid. Many first-time exporters start as merchant-exporters because it requires less capital and lets you test demand before committing to production.
Before anything else, identify your product category and check whether it falls under any export restrictions. The DGFT publishes a list of prohibited and restricted goods. Most everyday products, including textiles, food items, handicrafts, leather goods, and engineering parts, are freely exportable.
Step 2: Register your business
You need a formal business entity before you can apply for export licences or open a business bank account. The most common structures for new exporters are sole proprietorships, LLPs, and private limited companies.
Sole proprietorships are the fastest to set up and work well for small, single-person operations. LLPs and private limited companies carry more credibility with overseas buyers and are better suited for those who plan to grow or raise capital. Most international buyers ask for company registration documents before discussing serious orders.
Whichever structure you choose, make sure you have a valid PAN, Aadhaar, GST registration, and a registered business address before you proceed to the next steps. GST registration is particularly important because it allows you to claim input tax credits and access export incentive schemes.
Step 3: Get your IEC code
The Import Export Code (IEC) is the most important registration for any goods exporter in India. Without it, customs will not clear your shipment, and banks will not process your foreign exchange transactions. It is a 10-digit number issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce.
The good news is that the entire application is online and typically takes one to three working days. The government fee is just ₹500, paid through the Bharatkosh gateway on the DGFT portal at dgft.gov.in. Keep these documents ready before you start: PAN card of the business, address proof, cancelled cheque showing the business name, and Aadhaar of the authorised signatory for e-sign.
Once issued, the IEC has lifetime validity. However, you must update your IEC details on the DGFT portal between April 1 and June 30 every year. If you miss this window, the IEC is temporarily deactivated, and your shipments may be stuck at customs. The annual update is free and takes under five minutes.
After getting your IEC, register your bank's AD Code (Authorised Dealer Code) at every customs port where you plan to ship goods. This links your bank account to customs records and is required for the EDPMS system that tracks export proceeds.
Step 4: Open a current account for export transactions
All export proceeds must flow through an Authorised Dealer (AD) bank. This means you need a business current account at a bank authorised by the RBI to deal in foreign exchange. Most major banks in India qualify.
When opening the account, inform the bank that you are an exporter. This prompts them to set up the correct account type, link it to EDPMS, and register your AD Code. Some banks offer dedicated export current accounts with features such as trade finance, pre-shipment credit, and faster settlement in foreign currency.
Traditional bank accounts for receiving international payments come with a notable cost. FX markups of two to four per cent are common, and international wire fees can reduce your actual receipt significantly. We will cover smarter alternatives in Step 7.
Step 5: Understand your FEMA obligations
FEMA, the Foreign Exchange Management Act, governs all foreign currency transactions in India. As a goods exporter, FEMA compliance means two things in practice: declaring your exports correctly and bringing the payment home within the prescribed timeline.
From 2025-26, the RBI has issued updated FEMA regulations and circulars on the export and import of goods and services that consolidate the 2015 framework and extend the realisation timelines. The key change for goods exporters is a clearer, unified regime with more flexibility for both exporters and their AD banks.
Under the current framework, you generally have 15 months from the date of shipment to realise and repatriate export proceeds to India. Your AD bank monitors this through EDPMS. If payment is not received within the permitted period and no extension is granted, future exports may be restricted to advance payment or an irrevocable Letter of Credit only.
For every shipment, you must file an Export Declaration Form (EDF) with your AD bank. Your bank then submits this to customs. Once payment arrives, your bank closes the EDPMS entry. Keep your shipping invoices, packing lists, bill of lading, and payment advices organised. These documents are the backbone of FEMA compliance.
Step 6: Choose the right export payment terms
How you structure payment with your overseas buyer directly affects your risk. There are five main payment methods used in goods exports, and the right choice depends on how well you know the buyer and how much risk you are willing to absorb.
Advance payment (TT in advance) is the safest for you as the exporter. The buyer pays before you ship anything: zero collection risk and immediate cash flow. The downside is that many buyers resist full advance payment, especially in competitive markets. Starting with a partial advance payment is a practical middle ground. A
Letter of Credit (LC) is the most trusted method for high-value shipments. A bank in the buyer's country guarantees payment, provided you meet the exact documentary conditions. It removes the risk of buyer default but comes with strict paperwork requirements and bank fees on both sides.
Documents Against Payment (D/P) involves your bank holding the shipping documents until the buyer pays. The buyer cannot clear customs without those documents. It offers moderate security without the cost of an LC.
An open account means you ship first and get paid later, typically on 30, 60, or 90-day terms. This is common with trusted, long-term buyers. It creates cash-flow risk for you, so consider ECGC export credit insurance if you regularly use open account terms.
For new export relationships, start with an advance payment or LC. Open an account only after you have established trust and a payment history with a buyer.
Understanding which payment term to use can make a significant difference to your cash flow and risk exposure. Choosing the right export payment terms for your business requires weighing buyer relationships, order size, and your own working capital needs.
Step 7: Receive international payments efficiently
Once you have shipped the goods and the buyer initiates payment, the funds travel through the international banking system to your account in India. Traditional bank-to-bank SWIFT transfers typically take one to five business days and pass through one or more correspondent banks, each of which may deduct a fee.
The higher, often invisible cost is the FX markup. When your bank converts incoming USD, GBP, or EUR into INR, it applies an exchange rate typically two to four per cent weaker than the mid-market rate. On a $10,000 receipt, that can mean ₹16,000 to ₹32,000 quietly absorbed in fees.
A Global Collections Account (GCA) like the one offered by Winvesta changes this. With a Winvesta GCA, you get dedicated local account numbers in the US, UK, Europe, and other major markets. Your buyer pays into a local account in their country, as if they are paying a domestic supplier. The payment reaches you in India, typically within one business day, with no FX markup and low, transparent fees.
Every inward payment through Winvesta's GCA comes with an e-FIRA. This is the Foreign Inward Remittance Advice that your AD bank and the RBI require for FEMA compliance. You do not need to chase your bank for documentation. Everything is available for download from your Winvesta dashboard, keeping your EDPMS records clean and audit-ready.
Many exporters are surprised by how much they lose to hidden conversion costs before the money lands in their accounts. Understanding the full picture of international payment charges helps you choose the right collection method from day one. Hidden international payment charges break down exactly where those costs come from and how to avoid them. Ready to keep more of what your buyers pay you? Open your Winvesta GCA and start collecting in USD, GBP, EUR, and more — with e-FIRAs generated on every receipt.
Step 8: Register with an Export Promotion Council
Once your IEC is active and your bank account is ready, consider registering with the relevant Export Promotion Council (EPC) for your product category. Examples include EPCH for handicrafts, APEDA for food and agricultural products, and TEXPROCIL for textiles.
An EPC membership gives you access to market research, buyer leads, trade fair participation, and eligibility for government export incentive schemes. The RoDTEP (Remission of Duties and Taxes on Exported Products) scheme, for instance, provides duty refunds to exporters of goods. You need an RCMC (Registration Cum Membership Certificate) from the relevant EPC to claim most export benefits.
Registration with your EPC also boosts credibility with international buyers. It signals that you are a verified Indian exporter, not an unknown entity, which matters a great deal when a buyer is making their first purchase from India.
Key documents every goods exporter needs
Keep these documents ready before your first shipment. Missing even one can delay customs clearance and trigger FEMA issues.
- IEC certificate from DGFT
- GST registration certificate
- AD Code registration at the customs port
- RCMC from the relevant Export Promotion Council
- Commercial invoice and packing list
- Bill of lading or airway bill
- Shipping bill filed at customs
- Certificate of origin (if required by the buyer's country)
- e-FIRA or FIRC for each incoming payment
Government schemes worth knowing about
India actively supports exporters through several financial schemes. The RoDTEP scheme refunds taxes and duties embedded in exported goods that cannot be reclaimed otherwise. The Interest Equalisation Scheme (IES) reduces the cost of pre- and post-shipment rupee export credit for MSME exporters by around three per cent. ECGC offers export credit insurance that covers buyer default and country risk, which is particularly useful when you extend open account terms to new international buyers.
These schemes can meaningfully reduce the export costs. Apply for them through your AD bank or the DGFT portal once your IEC and RCMC are in place.
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute financial or legal advice. Winvesta makes no representations or warranties about the accuracy or suitability of the content and recommends consulting a professional before making any financial decisions.
Get paid globally. Keep more of it.
No FX markups. No GST. Funds in 1 day.
Table of Contents
Why exporting goods from India is worth your attention right now
India's combined goods and services exports reached an estimated $825 billion in FY 2024-25, according to figures from the Ministry of Commerce. Merchandise exports alone crossed $437 billion that year. Global buyers actively source from India because of competitive pricing and strong product quality. If you have a physical product and want to sell beyond India's borders, the infrastructure to do so has never been more accessible. Registration is online. Payments can settle in a day. And government schemes actively reduce your costs.
This guide walks you through every step to start a goods export business in India. It is written for first-time exporters who want a clear, practical path, not a list of confusing acronyms.
Step 1: Understand how goods export works
Exporting goods means shipping physical products from India to a buyer in another country and receiving payment in foreign currency. The cycle looks like this: you identify a product, find a buyer abroad, agree on a price and payment terms, ship the goods, clear customs, and collect payment.
You can operate as a manufacturer-exporter (you make the goods yourself) or a merchant-exporter (you source from manufacturers and sell to foreign buyers). Both models are valid. Many first-time exporters start as merchant-exporters because it requires less capital and lets you test demand before committing to production.
Before anything else, identify your product category and check whether it falls under any export restrictions. The DGFT publishes a list of prohibited and restricted goods. Most everyday products, including textiles, food items, handicrafts, leather goods, and engineering parts, are freely exportable.
Step 2: Register your business
You need a formal business entity before you can apply for export licences or open a business bank account. The most common structures for new exporters are sole proprietorships, LLPs, and private limited companies.
Sole proprietorships are the fastest to set up and work well for small, single-person operations. LLPs and private limited companies carry more credibility with overseas buyers and are better suited for those who plan to grow or raise capital. Most international buyers ask for company registration documents before discussing serious orders.
Whichever structure you choose, make sure you have a valid PAN, Aadhaar, GST registration, and a registered business address before you proceed to the next steps. GST registration is particularly important because it allows you to claim input tax credits and access export incentive schemes.
Step 3: Get your IEC code
The Import Export Code (IEC) is the most important registration for any goods exporter in India. Without it, customs will not clear your shipment, and banks will not process your foreign exchange transactions. It is a 10-digit number issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce.
The good news is that the entire application is online and typically takes one to three working days. The government fee is just ₹500, paid through the Bharatkosh gateway on the DGFT portal at dgft.gov.in. Keep these documents ready before you start: PAN card of the business, address proof, cancelled cheque showing the business name, and Aadhaar of the authorised signatory for e-sign.
Once issued, the IEC has lifetime validity. However, you must update your IEC details on the DGFT portal between April 1 and June 30 every year. If you miss this window, the IEC is temporarily deactivated, and your shipments may be stuck at customs. The annual update is free and takes under five minutes.
After getting your IEC, register your bank's AD Code (Authorised Dealer Code) at every customs port where you plan to ship goods. This links your bank account to customs records and is required for the EDPMS system that tracks export proceeds.
Step 4: Open a current account for export transactions
All export proceeds must flow through an Authorised Dealer (AD) bank. This means you need a business current account at a bank authorised by the RBI to deal in foreign exchange. Most major banks in India qualify.
When opening the account, inform the bank that you are an exporter. This prompts them to set up the correct account type, link it to EDPMS, and register your AD Code. Some banks offer dedicated export current accounts with features such as trade finance, pre-shipment credit, and faster settlement in foreign currency.
Traditional bank accounts for receiving international payments come with a notable cost. FX markups of two to four per cent are common, and international wire fees can reduce your actual receipt significantly. We will cover smarter alternatives in Step 7.
Step 5: Understand your FEMA obligations
FEMA, the Foreign Exchange Management Act, governs all foreign currency transactions in India. As a goods exporter, FEMA compliance means two things in practice: declaring your exports correctly and bringing the payment home within the prescribed timeline.
From 2025-26, the RBI has issued updated FEMA regulations and circulars on the export and import of goods and services that consolidate the 2015 framework and extend the realisation timelines. The key change for goods exporters is a clearer, unified regime with more flexibility for both exporters and their AD banks.
Under the current framework, you generally have 15 months from the date of shipment to realise and repatriate export proceeds to India. Your AD bank monitors this through EDPMS. If payment is not received within the permitted period and no extension is granted, future exports may be restricted to advance payment or an irrevocable Letter of Credit only.
For every shipment, you must file an Export Declaration Form (EDF) with your AD bank. Your bank then submits this to customs. Once payment arrives, your bank closes the EDPMS entry. Keep your shipping invoices, packing lists, bill of lading, and payment advices organised. These documents are the backbone of FEMA compliance.
Step 6: Choose the right export payment terms
How you structure payment with your overseas buyer directly affects your risk. There are five main payment methods used in goods exports, and the right choice depends on how well you know the buyer and how much risk you are willing to absorb.
Advance payment (TT in advance) is the safest for you as the exporter. The buyer pays before you ship anything: zero collection risk and immediate cash flow. The downside is that many buyers resist full advance payment, especially in competitive markets. Starting with a partial advance payment is a practical middle ground. A
Letter of Credit (LC) is the most trusted method for high-value shipments. A bank in the buyer's country guarantees payment, provided you meet the exact documentary conditions. It removes the risk of buyer default but comes with strict paperwork requirements and bank fees on both sides.
Documents Against Payment (D/P) involves your bank holding the shipping documents until the buyer pays. The buyer cannot clear customs without those documents. It offers moderate security without the cost of an LC.
An open account means you ship first and get paid later, typically on 30, 60, or 90-day terms. This is common with trusted, long-term buyers. It creates cash-flow risk for you, so consider ECGC export credit insurance if you regularly use open account terms.
For new export relationships, start with an advance payment or LC. Open an account only after you have established trust and a payment history with a buyer.
Understanding which payment term to use can make a significant difference to your cash flow and risk exposure. Choosing the right export payment terms for your business requires weighing buyer relationships, order size, and your own working capital needs.
Step 7: Receive international payments efficiently
Once you have shipped the goods and the buyer initiates payment, the funds travel through the international banking system to your account in India. Traditional bank-to-bank SWIFT transfers typically take one to five business days and pass through one or more correspondent banks, each of which may deduct a fee.
The higher, often invisible cost is the FX markup. When your bank converts incoming USD, GBP, or EUR into INR, it applies an exchange rate typically two to four per cent weaker than the mid-market rate. On a $10,000 receipt, that can mean ₹16,000 to ₹32,000 quietly absorbed in fees.
A Global Collections Account (GCA) like the one offered by Winvesta changes this. With a Winvesta GCA, you get dedicated local account numbers in the US, UK, Europe, and other major markets. Your buyer pays into a local account in their country, as if they are paying a domestic supplier. The payment reaches you in India, typically within one business day, with no FX markup and low, transparent fees.
Every inward payment through Winvesta's GCA comes with an e-FIRA. This is the Foreign Inward Remittance Advice that your AD bank and the RBI require for FEMA compliance. You do not need to chase your bank for documentation. Everything is available for download from your Winvesta dashboard, keeping your EDPMS records clean and audit-ready.
Many exporters are surprised by how much they lose to hidden conversion costs before the money lands in their accounts. Understanding the full picture of international payment charges helps you choose the right collection method from day one. Hidden international payment charges break down exactly where those costs come from and how to avoid them. Ready to keep more of what your buyers pay you? Open your Winvesta GCA and start collecting in USD, GBP, EUR, and more — with e-FIRAs generated on every receipt.
Step 8: Register with an Export Promotion Council
Once your IEC is active and your bank account is ready, consider registering with the relevant Export Promotion Council (EPC) for your product category. Examples include EPCH for handicrafts, APEDA for food and agricultural products, and TEXPROCIL for textiles.
An EPC membership gives you access to market research, buyer leads, trade fair participation, and eligibility for government export incentive schemes. The RoDTEP (Remission of Duties and Taxes on Exported Products) scheme, for instance, provides duty refunds to exporters of goods. You need an RCMC (Registration Cum Membership Certificate) from the relevant EPC to claim most export benefits.
Registration with your EPC also boosts credibility with international buyers. It signals that you are a verified Indian exporter, not an unknown entity, which matters a great deal when a buyer is making their first purchase from India.
Key documents every goods exporter needs
Keep these documents ready before your first shipment. Missing even one can delay customs clearance and trigger FEMA issues.
- IEC certificate from DGFT
- GST registration certificate
- AD Code registration at the customs port
- RCMC from the relevant Export Promotion Council
- Commercial invoice and packing list
- Bill of lading or airway bill
- Shipping bill filed at customs
- Certificate of origin (if required by the buyer's country)
- e-FIRA or FIRC for each incoming payment
Government schemes worth knowing about
India actively supports exporters through several financial schemes. The RoDTEP scheme refunds taxes and duties embedded in exported goods that cannot be reclaimed otherwise. The Interest Equalisation Scheme (IES) reduces the cost of pre- and post-shipment rupee export credit for MSME exporters by around three per cent. ECGC offers export credit insurance that covers buyer default and country risk, which is particularly useful when you extend open account terms to new international buyers.
These schemes can meaningfully reduce the export costs. Apply for them through your AD bank or the DGFT portal once your IEC and RCMC are in place.
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute financial or legal advice. Winvesta makes no representations or warranties about the accuracy or suitability of the content and recommends consulting a professional before making any financial decisions.
Get paid globally. Keep more of it.
No FX markups. No GST. Funds in 1 day.
