How to Export from India for Small Businesses and Medium Enterprises (SMEs)
India’s MSME sector contributes nearly one-third of the country’s GDP and drives around 50% of India’s exports. With government initiatives focused on boosting exports, now is the perfect time for small and medium businesses to expand globally.
Whether you are an established local business or just starting, understanding export regulations, documentation, and logistics is crucial for a successful international trade journey.
Step 1: Market Research & Export-Ready Products
Before exporting, conduct market research to identify countries with high demand for your products. Consider:
Target markets for existing products
Top-selling products with international appeal
Local preferences in your destination country
Pro Tip: Start small by sending sample products to gauge feedback and minimize risks.
For e-commerce businesses, leverage online platforms to increase international visibility and cater to global customers efficiently. SMEs can capitalize on cultural uniqueness, cost efficiency, and quality craftsmanship to make a mark internationally.
Step 2: Regulatory Framework & Compliance
To export from India, SMEs must follow the legal and regulatory framework, including:
Import Export Code (IEC): Mandatory for all exporters, issued by DGFT.
GST Filing: Required for compliance and invoicing.
Shipping Bills & Certificates of Origin: Essential for customs clearance.
Export Promotion Schemes: RoDTEP and SEIS can provide financial incentives.
Tip: Participate in workshops by Export Promotion Councils (EPCs) to stay updated on regulations and financial support.
Step 3: Essential Export Documents
Export documentation ensures smooth customs clearance and secure transactions. Key documents include:
Bill of Lading: Carrier-issued receipt and contract for cargo.
Commercial Invoice cum Packing List: Combined document for customs and shipment details.
Shipping Bill (Bill of Export): Mandatory for customs clearance, filed via ICEGATE.
Proforma Invoice: Used for advance payments and export agreements.
Purchase Order (PO): Confirms buyer’s order with shipping and pricing details.
Certificate of Origin (COO): Affirms the country where goods were produced.
Bill of Exchange (BE) & Letter of Credit (LC): Secures payment from international buyers.
Quality Inspection Certificates, Phyto Sanitary, and Fumigation Certificates: Required for agricultural or regulated products.
Step 4: Logistics & Supply Chain Management
Selecting the right shipping partner is vital for timely deliveries and safe transit. Consider providers who offer:
International shipping experience
Customs clearance assistance
Export insurance
Real-time tracking and delivery updates
Tip: Compare multiple providers to balance cost, reliability, and service quality.
Step 5: Payment Methods & Risk Management
Ensure secure payments by choosing suitable methods:
Letters of Credit (LC) & Advance Payments: Reduces payment risks
Integrated e-commerce payment gateways: Supports multi-currency transactions
Export Insurance via ECGC: Protects against defaults or currency fluctuations
Forward contracts or hedging: Minimizes forex risks
Export Factoring: Consider selling export receivables to factoring firms to receive quick payment and reduce risk.
Step 6: Support & Resources for SMEs
Government Schemes:
EPCG: Duty-free import of capital goods for export production
MEIS: Incentives to offset export infrastructure costs
MAI: Financial support for market research and trade promotion
Make in India Grants: Subsidies for manufacturing and exports
Private Support:
Platforms like Amazon Seller Central simplify exporting processes
Amazon FBA handles logistics for hassle-free shipping
Financial Assistance:
ECGC: Protects against export payment risks
Bank Loans: Pre-shipment and post-shipment financing for working capital
Why Exporting is Vital for SMEs
Increase Revenue Streams: Access a global customer base
Boost Brand Visibility: Enhance credibility internationally
Diversify Markets: Reduce dependency on local economic fluctuations
Conclusion
Exporting from India as an SME can be challenging but rewarding. By staying informed, leveraging government schemes, and partnering with reliable logistics providers, small businesses can successfully establish a global presence.
Start planning your export journey today and take your local business to international heights.
Happy Shipping!
FAQs
1. How can small businesses start exporting from India?
Research target markets, identify export-ready products, obtain IEC, prepare documentation, and leverage government schemes.
2. What financial support is available for exporters?
EPCG, MEIS, ECGC, and bank financing provide credit and insurance support.
3. Which products are best for exporting from India?
Textiles, spices, herbal products, artificial jewellery, and handicrafts are highly sought after globally.
4. How can I ensure compliance with international trade laws?
Stay updated on regulations and use resources like Export Compliance Dashboards or export support platforms.