India has a thriving export industry that ships products all over the world. Some of India’s top exports include gems and jewelry, engineering goods, petroleum products, vehicles, agricultural products, pharmaceuticals, and more.
In this blog post, we’ll take a closer look at how exporting works in India – the key products that are exported, major export markets, export procedures and documentation, export incentives offered by the Indian government, and the future outlook for India’s exports.
Major Export Products from India
India exports a diverse range of products to countries far and wide. Here is an overview of some of India’s leading export categories:
| Export Category | Key Items |
|---|---|
| Gems and jewelry | Diamonds, gold jewelry, precious & semi-precious stones |
| Engineering goods | Automotive parts, industrial machinery, electrical equipment, iron and steel |
| Petroleum products | Refined petroleum oils, petrol, diesel |
| Vehicles | Cars, motorcycles, commercial vehicles |
| Agricultural products | Rice, tea, spices, meat, seafood |
| Pharmaceuticals | Generic drugs, vaccines, traditional medicines |
| Chemicals | Dyes, paints, fertilizers, pesticides |
| Textiles and garments | Cotton, silk, woolen fabrics, apparel |
| Leather goods | Finished leather, footwear, handbags |
India’s export strengths lie mainly in labor-intensive sectors and natural resource-based industries. The country has a skilled workforce that allows it to competitively manufacture a wide array of products at lower costs compared to Western nations.
Proximity to key import markets in Asia, Africa, and the Middle East also facilitates India’s export trade.
Major Export Markets for India
India exports products to over 190 countries around the globe. Some of the top destinations for Indian exports include:
- United States
- United Arab Emirates
- China
- Hong Kong
- Bangladesh
- Singapore
- Germany
- Nepal
- South Korea
- Vietnam
The US is India’s largest individual export market, accounting for around 15% of all outbound shipments. Within Asia, India mostly exports to fast-growing developing economies with large populations and rising incomes.
In recent years, India has made considerable efforts to bolster exports to new regions like Latin America and Africa based on their emerging consumer markets.
Step-by-Step Process for Exporting from India
If you want to export products from India, here is a rundown of the typical export procedures and documentation involved:
- Obtain an Importer-Exporter Code (IEC) from the Directorate General of Foreign Trade
- Register with export trade bodies like the Federation of Indian Export Organisations (FIEO)
- Conduct market research on demand for your product abroad
- Determine the closest international port or airport for export
- Ensure your product meets all legal standards and certifications in the target export country
- Obtain necessary licenses to export your product
- Purchase marine insurance to cover risks during shipping
- Prepare all shipping documents like invoices, packing lists, etc.
- Hire an experienced customs broker to handle complex paperwork
- Pay relevant export fees and duties
- Submit finalized documents to customs authorities for clearance
- Arrange product transport via sea, air or land to the destination country
- Follow up with your importer for payment
Proper documentation and following international regulations are vital for any export shipment from India to successfully reach its buyer.
Key Export Incentives in India
The Indian government offers many helpful export incentive schemes including:
- Duty drawback – Refund of customs and import duties paid on raw materials used in exported goods
- Merchandise Export Incentive Scheme – Financial rewards for exporting specific products to certain markets
- Export Promotion Capital Goods – Import of capital equipment for export production at zero customs duty
- Advance Authorization – Duty-free import of inputs required to manufacture export products
- Special Economic Zones – Zones offering subsidies, tax breaks and high-quality infrastructure for exporters
In addition, Indian states provide incentives like rebates on electricity duty and VAT, reduced land costs, and export coaching subsidies.
Using relevant export incentives judiciously enables Indian firms to offer very price competitive exports worldwide.
Future Outlook for Exports from India
India’s exports have increased consistently in the 2000s and 2010s. However, exports as a percentage of GDP are still around 19% which lags compared to East Asian economies.
To boost exports further, analysts recommend:
- Improving port infrastructure and trade logistics
- Making regulations more export industry-friendly
- Focusing on higher value-added products for exports
- Expanding presence in markets with trade growth potential
- Providing more financial assistance to small export firms
- Encouraging e-commerce exports
- Targeting the large Indian diaspora globally
With these steps, India can diversify its export profile beyond current heavy reliance on agricultural goods, textiles, gems, petro products and generics exports.
High technology exports especially in fields like defense, pharmaceutical research, space technology, biotech, engineering R&D, and IT services are particularly promising for the future.
If fostered well, both goods and services exports from India can play a larger role in stimulating economic progress over the next decade.
Conclusion
Exports make up an integral component of India’s economic activity. From elaborate textiles to intricate metal parts, Indian firms deliver diverse products to all corners of the map daily via complex export channels.
Fine-tuning incentives, upgrading infrastructure, removing bureaucracy, and supportive government programs can assist India’s export trajectory going forward.
With resilient entrepreneurs and sizable manufacturing capacity, India seems well-placed to boost export volumes as well as export higher value items in coming years.
Hopefully this guide offers a good overview about how exporting from India works – ranging from the everyday products shipped in containers globally to upcoming opportunities on the horizon for India’s export sector.
