With India's delicate balance of quality, cost-effectiveness, and diversity, Indian products are increasingly finding their way into the international market. This provides great export business opportunities for savvy entrepreneurs.

These export business opportunities are supplemented by initiatives such as the Make in India campaign, which aims to make India a global manufacturing and export hub. These policies are starting to show measurable impact: India's export performance has grown, reaching approximately $3.6 trillion in 2023-24, with trade relationships that span across top markets like the United States, the United Arab Emirates, and China. Furthermore, exports in service sectors, especially in IT and consulting, are booming​.

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This article is designed for beginners as well as experienced entrepreneurs to dive into the great Indian exporting arena. With it, we will show you what the most promising categories to export are and will specifically explore the various requirements and demands of several industries along with actionable steps that assure success in that category. 

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So let’s get started. Here’s a detailed exploration of the 10 Best Export Business Ideas in India:

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#1 Handicrafts and Artisinal Products

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India's handicrafts sector is one of the most exciting and profitable areas, characterized by its rich cultural heritage and high-skilled craftsmanship. As the worldwide desire for unique, handmade products increases, the opportunities for Indian handicrafts to take a significant global share are excellent.

The global handicrafts market was valued at approximately USD 678.24 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 4.7% from 2023 to 2030. Expectations are that it will continue to grow, given the fact that customers now increasingly look for original and unique products​. 

Such products can be sold on both Etsy and Amazon Handmade. Quality, cultural narration, and online platforms ensure that Indian businesses can make a name for themselves in the international market.

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#2 Textiles and Apparel

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India is among the world's largest textile producers and contributes significantly to the nation’s GDP. 

The global textiles market size has reached around $ 1.5 trillion by 2020 and growing at a CAGR of 4.4 percent per annum and might reach close to $2 trillion in 2026​.

Textile exports had already touched nearly $38 billion in the fiscal year 2021-22, thereby showcasing the country's capability of taking a bigger slice of the global market. Major markets are the United States, European Union, and Japan, which import both raw materials and finished garments.

To succeed in this fast-paced market, exporters should invest in market research to understand evolving fashion trends and consumer preferences. Via a strong production capacity from India, sensitivity to the marketplace, and embracing the idea of sustainability, it would be possible for these exporters to find their feet within the dynamic industry of textile and apparel.

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#3 Organic Spices and Herbs

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India is sometimes called the "Land of Spices." Indian cuisine has given mankind innumerable flavors to include in various cuisines. Increasing focus on health and wellness in the international markets results in increased demand for organic spices and herbs. Thus, it has become an interesting business opportunity for the huge spice cultivation base of India which has a long-established reputation.

The global organic spices market was around $3.5 billion in the year 2020. The industry will be growing in this period with a CAGR of 10.3%, and this amount will be around $6.8 billion during 2026. Organic demand will rise due to changing trends, including increased health awareness in consumers and a desire to prefer more natural ingredients across all geographic regions, namely, North America, Europe, and the Middle East.

The organic spices and herbs sector is one of the promising avenues for Indian exporters to tap into the growing global demand for organic products. Don’t forget to get the relevant certifications, for example. USDA Organic is the certifying organization in America.

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#4 Processed Food and Ready-to-Eat Meals

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Given people’s fast-paced lifestyles, there is tremendous demand for processed food and ready-to-eat meals. India with its rich culinary heritage is poised to take advantage of this, though this business requires substantial upfront investment in research and marketing.

The ready-to-eat meals segment will grow considerably with the influence of urbanization and changing lifestyle patterns toward convenient meal solutions. The target markets would be Europe, North America, and Australia, as consumers are increasingly seeking Indian cuisine for its flavor profile and vegetarian options.

The foremost step for entering international markets is food safety compliance in the country of export. Exporters should be aware of the FDA, EFSA (European Food Safety Authority standards), etc. Quality, compliance, and strategic marketing will ensure thriving businesses in this dynamic market.

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#5 Leather Goods

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With a rich tradition in leather production, India is one of the largest exporters of leather goods in the world, making it an attractive sector for export businesses.

The global leather goods market was approximately $400 billion in 2022. With a CAGR of 5.5% by 2029, the market is likely to reach about $525 billion. At present, leather products constitute about 12% of the leather export market. Countries like the United States, Germany, Italy, and the United Kingdom, form the primary export market for Indian businesses. That would mean an immense opportunity to leverage the international market.

Customers prefer sustainable and responsible products these days. The products should focus on quality and craft, and the use of artisanal quality in Indian leather goods can attract a higher price. Partnering with local artists also keeps traditional craftsmanship techniques alive to add value to the products.

The leather goods industry is considered to be a very promising area for Indian exporters.

#6 Pharmaceuticals

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India is one of the world's largest pharmaceutical manufacturing countries with strong manufacturing capabilities and an extensive portfolio of generic drugs. With the rising demand for affordable healthcare solutions worldwide, this sector provides a huge export opportunity for Indian businesses.

The demand for generic medicines is on the rise, particularly in developed countries, which are worried about the huge healthcare costs. Its key markets are the United States, the European Union, and Africa. India is one of the world's biggest suppliers, and reports say that more than 40% of generic drugs sold in the U.S. are from India. Consumers are also interested in ayurveda and biopharmaceuticals, which are expected to boom in the coming years.

Continuous investment into R&D is essential. With its high demands across the world, especially for less costly healthcare provisions, this industry has significant scope in pharmaceutical exports in the case of Indian organizations. 

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#7 Gems and Jewelry

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The Indian subcontinent may not have oil, but it has always been very fortunate when it comes to precious stones and rare minerals.

India is one of the biggest exporters of gems and jewelry and contributes nearly 29% of the world market share. The most significant export destinations for Indian gems and jewelry are the United States, United Arab Emirates, Hong Kong, and Thailand.

Consumer preference towards unique, personal, and customized pieces of jewelry has become popular. People want to stand out as an individual. There's also a great interest in responsible and sustainable sourcing as consumers are also socially conscious. Indian businesses will succeed well in the sector by emphasizing sustainability, innovation in marketing, and further market expansion.

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#8 Automobile Parts and Accessories

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As part of the automotive supply chain, India offers a vast assortment of components for various categories of vehicles, making the sector an attractive one for export-oriented businesses.

The United States, Germany, Japan, and the United Kingdom are among the leading export destinations for automobile parts from India. As electric vehicles are gaining recognition, there is also a rising market for associated components.

The automobile industry is changing towards sustainability and advanced technology, as more people demand electric and hybrid vehicles. Consumers have shifted their focus towards quality, reliability, and innovation for high-quality parts. Furthermore, customization is now in vogue, with consumers demanding unique and customized accessories for their vehicles.

Such products need to be up to international quality standards, thereby gaining credibility and trust in the global market. Indian companies can ride on this emerging wave with better quality, innovation, and careful market participation.

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#9 IT Services and Software Consultancy

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India has long been a global leader in terms of IT services and software solutions, thanks to an adequate pool of skilled talent and a vibrant technology landscape. As the need for digital transformation has been rising across sectors, this is an important opportunity for Indian businesses in the export of IT.

‍India contributes nearly 55% to the global outsourcing market. This sector's exports from the Indian IT and BPM sectors were around $194 billion in 2020. Major clients are the countries in the United States, the United Kingdom, Canada, and other countries in Europe and Asia.

There is an increase in the adoption of cloud computing, cybersecurity, AI, and machine learning. There is also a trend of developing custom software, as firms require special software to suit their unique needs.

This sector of IT services and software solutions offers ample business export opportunities to Indian entrepreneurs with the world transitioning towards digitalization and innovation. Companies can take the opportunity and specialize in healthcare, finance, and e-commerce, among others to create a unique niche from the crowd. 

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#10 Organic Agricultural Produce

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With a rich heritage of agriculture and an increased concern for health and environment, organic farming is gradually finding takers among Indian farmers. This provides an attractive export opportunity for businesses catering to organic agricultural produce.

India ranks 9th globally in terms of organic agricultural production and has more than 1.5 million farmers engaged in organic farming across more than 3.1 million hectares of land. Major export destinations for Indian organic products range from fruits and vegetables, grains, and spices to the United States, European Union, Canada, and Australia.

Organic certifications by USDA, EU Organic, and the National Program for Organic Production (NPOP) of India help to sell the product in an international market and also will build consumer confidence for the company. Indian businesses can capture this market if they concentrate on quality, certification, and effective marketing strategies.

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How to start an export business from India?

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The following steps help simplify the process of starting an export business in India.

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1. Choose Your Products and Markets: Choose which products you will export and in which markets.
2. Register Your Business: Choose a suitable business structure and register it with the government.
3. PAN Number: Obtain a Permanent Account Number (PAN) for tax purposes.
4. Open a Current Account: Opening a current bank account allows all transactions of the business to be conducted.
5. Obtain an Importer Exporter Code (IEC): This IEC is issued by the Directorate General of Foreign Trade (DGFT), which one needs to obtain because it is compulsory for every exporter.
6. Obtain RCMC: Apply for Registration Cum Membership Certificate from the relevant export promotion council.
7. Identify Your Customers: Contact the possible importers and network with them.
8. Set Pricing and Prepare Documents: Finalize the pricing strategy and be sure to have all the necessary papers in place.
9. Ship Commodities and Receive Payments: Coordinate shipping, ensuring a reliable payment arrangement. Karbon specializes in payment methods for Indian exporters

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Essential Documents for Export

When starting an export business, you will need the following documents:

• Bill of Lading/Airway Bill
• Commercial Invoice/Packing List
• Shipping Bill
• Terminal Handling Receipt
• Import Export Code (IEC)
• Certificate of Inspection (if required)

These steps and documents are crucial for successfully launching and operating an export business in India. For more details, you can refer to the DGFT website and related resources.

Final Thoughts on Export Business Opportunities in India

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Exporting products from India is certainly a lucrative venture. While we at Karbon cannot solve all business hurdles for you, one thing we specialize in is receiving payments for Indian exporters.  Karbon ensures you get your payments quickly and securely and at a fraction of the cost when compared to other providers. This is why we are the preferred payment choice for Indian exporters, get in touch with us today to see how we can help you.

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FAQ

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How can small businesses finance export operations?

Export financing is available with banks and there are schemes from institutions like the Export-Import Bank of India, to finance exports. Grants, incentives or Special Economic Zones (SEZs) are also provided by the government to encourage exports.

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What are the main challenges for new exporters in India?

New exporters in India face difficulties such as regulatory compliance, logistics and shipping, getting paid by foreign clients, and currency fluctuations. It is not easy to build a network of international contacts either. 

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Which Indian industries are growing the fastest in terms of exports?

Currently, exports are growing in areas such as pharmaceuticals, textiles, engineering goods, and IT services. According to the Ministry of Commerce, sectors related to organic food and handloom products are also growing in international markets. For further details, do refer to the latest report from the Ministry of Commerce and Industry.

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How Do Indian Businesses Find International Buyers?

Indian businesses can source international buyers through participation in trade fairs, online marketplaces like Alibaba and Amazon, and social media as a marketing tool. Other routes include joining export promotion councils and industry associations. This will connect Indian businesses to potential buyers. Directories on platforms like TradeIndia also help find international buyers.

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