India’s export sector has grown by 67% over the last decade. Even with policy shifts and trade uncertainties, the industry continues to grow by nearly 5% every month, showing steady growth.

So, if you are planning to scale your business globally, now is the right time to get an export licence.

But how do you go about it? What licences do you need? What documents should you have in place? And what regulations do you need to follow?

These are questions almost every new exporter asks. We’ve created this step-by-step guide on how to start an export business without getting stuck with compliances or payment tracking.  

Step-by-Step Process to Start Export Business in India

Let’s see how to start an export business in India. 

1. Do market research and choose your niche

Start by identifying products and services that have strong demand in international markets. India’s top product exports in 2025 include electronics, pharmaceuticals, engineering goods, textiles, and agricultural products. 

For example, in May 2025 alone, the best export business in India included electronic goods, with exports rising 54.1% year-on-year. Other fast-growing, most profitable export businesses in India include:

• Marine Products: Up by 26.79% ($0.73B in 2025 vs $0.58B in 2024)

• Organic & Inorganic Chemicals: Grown by 16%

• Readymade Garments (RMG): Increased by 11.35%

• Drugs & Pharmaceuticals: Up by 7.38%

If you want service export business ideas, consider exporting IT, financial, marketing, or software development services. You can use platforms like Upwork, Freelancer, and LinkedIn to understand the global demand.

Use trade data, government export reports, and B2B platforms like IndiaMART to spot export business ideas, trends, and gaps. Then, analyse competitor prices, trade barriers, and political stability in target countries. 

2. Register your business

You must legally register your business as a sole proprietorship, partnership, private limited company, or LLP under the Companies Act of 2013 to get an export license.

Choose an attractive business name and logo to build your brand identity. 

3. Get an Import Export Code (IEC)

An Import Export Code (IEC) is mandatory to do export and import activities in India.

You can apply online for an IEC in the following manner:

• Visit the Directorate General of Foreign Trade (DGFT) website.

• Fill out the IEC application form.

• Upload required documents (PAN, address proof, bank certificate).

• Pay the application fee.

• Receive your IEC within a few days.

4. Register with DGFT and other regulatory bodies

After you’ve registered your business with DGFT, if needed, register with specific export promotion councils or commodity boards. For example:

• Spices Board for spices.

• APEDA for agricultural products.

• FIEO for general exporters.

• FSSAI for food products.

• Tea Board for tea items.

This registration helps you access government incentives and support.

5. Understand legal and tax compliance

Classify your product using the Harmonized System (HS) Code. This helps in customs clearance and tariff determination. 

Your products should also meet quality standards and certifications required by the importing country to avoid rejection at customs.

For example, if you export organic tea, you may need certifications like USDA Organic or EU Organic. This will depend on your target market.

You also need a GST Letter of Undertaking (LUT) to export products or services without paying IGST upfront. 

6. Select shipping and logistics partners

If you are exporting products, the next step is to choose an appropriate shipping method, such as sea freight, air freight, or land transport, depending on your product type, cost, and delivery time. 

Here’s how you can choose:

• Sea freight: It works best for large or heavy shipments that aren't time-sensitive, such as machinery and textiles.

• Air freight: This method is ideal for small, high-value, or urgent goods (e.g., electronics, perishables).

• Land transport: This shipping method is used to export to neighbouring countries like Nepal and Bangladesh.

Then, look for reliable logistics partners experienced in international shipping. Make sure they provide live package tracking and insurance services. 

7. Get specific product licenses and certificates

Some products require additional licenses or certificates. For example:

• Phytosanitary certificates for agricultural products.

• Handicrafts may require an export license from the Export Promotion Council for Handicrafts (EPCH).

• Food exports need FSSAI approval.

Check specific regulations for your product and market to stay compliant.

8. Claim export benefits

Starting an export business can be challenging initially. That’s why the Government of India offers many schemes and incentives to exporters under the Foreign Trade Policy. 

Here are some beneficial export schemes and benefits you can avail for your business:

• Remission of Duties and Taxes on Export Products (RoDTEP) Scheme: Under the RoDTEP Scheme, you can claim refunds for all the taxes and duties you pay during the manufacturing or transport of exported goods. This includes Mandi Tax, coal cess, and central excise duty on fuel. Check the eligibility criteria to avail of benefits under this scheme. 

• Duty Drawback Scheme: With this scheme, you can claim a refund on customs duties paid on any imported raw material which was used to make products for export.

• GST refund on exports: You can also get a refund of GST paid on raw materials, input services, and other business-related purchases used in creating products for exports.