🌍 HOW TO START EXPORT BUSINESS IN INDIA – A COMPLETE 12-STEP EXPORT ROADMAP (MILESTONE 1)
By CA Devesh Thakur | EtaxSave
India is fast emerging as a powerful global supplier across industries such as textiles, handicrafts, agricultural products, chemicals, engineering goods, leather products, electronics, and services. With supportive government policies, improved logistics infrastructure, trade agreements, and digital compliance systems, exporting from India has never been more accessible.
However, many aspiring exporters fail not because of lack of product quality, but because of lack of proper procedural knowledge. This blog is created as a part of my Export Roadmap Learning Initiative to help beginners understand the exact legal, financial, and operational steps required to start exporting from India.
This is Milestone 1 of the Export Roadmap and covers the first 12 foundational steps every exporter must complete before their first shipment.
✅ STEP 1: Choosing the Correct Business Structure
Before you export anything, your business must exist legally. The business structure you choose affects:
- Taxation
- Liability
- Compliance burden
- Banking facilities
- Buyer credibility
Common export-friendly business structures in India include:
1. Sole Proprietorship
Best for beginners with limited capital and small operations. Easy to start but has unlimited liability.
2. Partnership Firm
Suitable for family businesses. Requires a partnership deed.
3. Limited Liability Partnership (LLP)
Offers limited liability and fewer compliance obligations compared to a company.
4. Private Limited Company
Most preferred for serious exporters dealing with international buyers and corporate clients.
✅ Professional Advice: If you are planning long-term exports, overseas branding, or funding, Private Limited or LLP is highly recommended.
✅ STEP 2: Opening a Current Account with an Authorised Dealer Bank
Export payments are made in foreign currency. As per RBI regulations, only Authorised Dealer (AD) Banks are permitted to handle foreign exchange transactions.
You must open a current account in the name of your export business. This account is mandatory for:
- Receiving export proceeds
- Export finance
- Bank realization certificates (BRC)
- FEMA compliance
Basic Documents Required:
- PAN of business
- Business registration proof
- Address proof
- GST registration (if applicable)
- KYC documents of directors/partners
✅ STEP 3: IEC – Importer Exporter Code Registration
IEC is the primary export authorization number issued by the DGFT (Directorate General of Foreign Trade). Without IEC, you cannot:
- File shipping bill
- Clear customs
- Receive foreign remittances
- Claim export incentives
Key Points:
- IEC is generated online
- PAN-based
- Lifetime validity
- Aadhaar-based OTP verification
IEC is not just a registration — it is your identity in international trade.
✅ STEP 4: Product Finalization & HS Code Classification (ITC-HS)
Every export product must be classified under the Indian Trade Classification – Harmonised System (ITC-HS).
The HS Code determines:
- Export policy (free/restricted/prohibited)
- Tariff structure
- Documentation
- Buyer country import duty
Incorrect HS code selection can lead to:
- Customs rejection
- Penalties
- Shipment delay
✅ Always classify your product carefully with professional guidance.
✅ STEP 5: International Market Research & Buyer Discovery
An exporter must never rely only on domestic demand. International market research includes:
- Country demand analysis
- Price benchmarking
- Import regulations of buyer country
- Competitor pricing
Buyer Discovery Platforms:
- Export Promotion Councils (EPCs)
- Trade fairs and exhibitions
- B2B Portals (Alibaba, IndiaMART, TradeIndia, Global Sources)
- LinkedIn Export Networking
- Indian Embassies Trade Cells
Strong buyer research minimizes rejection, defaults, and losses.
✅ STEP 6: Export Pricing, Sample Dispatch & Incoterms 2020
Export pricing is not equal to domestic pricing. It includes:
- Product manufacturing cost
- Packaging
- Inland transport
- Customs handling charges
- Freight (air or sea)
- Insurance
- Banking charges
- Commission if applicable
INCOTERMS 2020
Incoterms define cost-sharing and risk transfer between exporter and buyer.
Common Incoterms:
- EXW – Ex Works
- FOB – Free On Board
- CIF – Cost Insurance Freight
- DAP – Delivered at Place
- DDP – Delivered Duty Paid
Wrong Incoterm selection can wipe out your profit.
✅ STEP 7: ECGC – Export Credit Risk Protection
ECGC (Export Credit Guarantee Corporation) protects exporters from:
- Buyer default
- Political risk
- Payment delays
- Insolvency risk
Every new exporter must take ECGC coverage to protect working capital and bank financing eligibility.
✅ STEP 8: Export Documentation
Export documentation is the most sensitive part of international trade. Key documents include:
- Commercial Invoice
- Packing List
- Shipping Bill
- Bill of Lading / Airway Bill
- Certificate of Origin
- Insurance Certificate
- Inspection Certificate
- Bill of Exchange
- Letter of Credit (if applicable)
Even a small mismatch may result in:
- Payment delay
- Customs objections
- Claim rejection
✅ STEP 9: Freight Forwarder & Customs House Agent (CHA)
A Freight Forwarder manages:
- Cargo booking
- Freight negotiation
- Packaging advice
- Warehouse arrangement
- Shipment tracking
A CHA (Customs House Agent) manages:
- Customs clearance
- HS code validation
- Duty access
- Export paperwork filing
Choosing the right logistics partner ensures smooth export flow.
✅ STEP 10: Export Finance – Pre & Post Shipment
1. Packing Credit (Pre-Shipment)
Used for:
- Raw materials
- Labour
- Packaging
2. Post-Shipment Finance
Used for:
- Bill discounting
- LC negotiation
- Export invoice funding
Export finance improves liquidity and reduces business stress.
✅ STEP 11: Export Packaging & Labelling Compliance
International packaging must meet:
- Moisture resistance
- Load-bearing capacity
- Long-distance damage protection
- Country-specific import regulations
Label must include:
- Exporter name
- Consignee name
- Country of origin
- HS Code
- Weight & handling symbols
Poor packaging leads to claims and buyer disputes.
✅ STEP 12: Export Promotion Schemes & Incentives
The Indian government supports exporters through:
- Export Promotion Councils (27 EPCs)
- RCMC Registration
- MAI (Market Access Initiative)
- Transport & Marketing Assistance
- E-commerce export benefits up to ₹10 lakh
Export incentives improve international price competitiveness.
✅ TABLE: IMPORTANT EXPORT TERMS – FULL FORM
| Short Form | Full Form |
| IEC | Importer Exporter Code |
| DGFT | Directorate General of Foreign Trade |
| ITC-HS | Indian Trade Classification – Harmonised System |
| CHA | Customs House Agent |
| ECGC | Export Credit Guarantee Corporation |
| FOB | Free On Board |
| CIF | Cost Insurance Freight |
| BL | Bill of Lading |
| AWB | Airway Bill |
| EPC | Export Promotion Council |
| RCMC | Registration Cum Membership Certificate |
🎯 Conclusion
Export is not a shortcut business — it is a system-driven process that requires:
- Legal compliance
- Financial discipline
- Documentation accuracy
- Risk management
This 12-step Export Roadmap (Milestone 1) gives you a solid legal and practical foundation to confidently start exporting from India.
✅ About EtaxSave & CA Devesh Thakur
This initiative is powered by EtaxSave, a professional taxation and compliance platform led by CA Devesh Thakur, committed to educating Indian entrepreneurs on exports, GST, income tax, and international trade documentation.
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