How to Export Hand-Made Products from India: Export guidelines & Procedure

The Export Scenario in India

The cottage industry in India has been receiving acknowledgments from all over the world for its unique product in design and craftsmanship. These products have been the pride of India and have great demand in the global market. These products symbolize India’s rich tradition and culture. It offers employment to a large number of people in different parts of the country. Promoting the export of these products can bring a good amount of revenue and increase the profitability of this industry. It is necessary to understand how export activities from India can be carried out efficiently with the support of government guidelines and procedures. To be successful in the export business, one needs to gather sufficient information about the market. The best way to begin is to make proper market research and then plan the marketing strategies accordingly. Indian products are popular and in high demand abroad, so there is a huge potential for export of these products and earning foreign exchange. This research on market structure reveals how profitable the export business for such products is and how to cater to the demands and requirements of a large variety of customers across the world. 

To research the export market, one must take the following initiatives to get him updated and equipped to start the export activities of his products.

  1. Attend import-export related exhibitions, fairs, conferences and take advantage of social media networks to build connections.
  2. Get a fair idea about functional and quality requirements of products as per international standard.
  3. Gathering ideas about competition scenarios and pricing structure in the same category.
  4. Decide on a marketing strategy that facilitates the export business.

Check out online handicraft export and import platforms like Craftezy which supports craftsmen with listing their handicrafts online for the global market, provides export information and acts as a one stop shop for all their import/export needs. You can register yourself as a seller for FREE and enjoy safe trade across the world. Know more HERE .


Pricing Strategy of Products

Pricing Strategy of Products

The export price of the product is a very important deciding factor. Setting a price too low will affect profitability and too high a price may affect trust. Pricing strategies are made considering the profit expectations and other factors that influence your product’s price. Different components contribute to the total pricing of a product in exports. These are as follows:

Production Cost: Raw material and labor cost

Packaging cost: Depends on product quality and size

Promotion cost: Cost involved in promoting a product

Transportation cost: Cost involved in transporting from one location to the other

Tax and Insurance: Applicable taxes, levies, freights, and insurance charges

Profit margin: Add up the profit margin

After figuring out the different components and adding to get a base price, there are additional costs that need to be incorporated to get the final cost until the product reaches the customer. However, the cost may be adjusted with help of facilities like rebates, exemption of taxes and duties, export credit, etc. These factors have an impact on cost. The price of the product is set considering the margin and markup for your product. The margin is the revenue earned after adjusting the production cost and the markup is the difference between the selling price and the cost of the item. The pricing can be determined by some other factors that are influenced by market, competition, and type of products. The price can be kept flexible, driven by market demand and supply pattern, or competitors’ pricing strategies. Sometimes a high price can be charged for a premium product to justify its uniqueness. There are a set of internationally recognized rules which determine the responsibilities of buyers and sellers for paying and managing the shipment, documentation, insurance, and other logistical activities. This also affects the export costs and profits.

Prerequisites for Exports

Prerequisites for Exports

Certain prerequisites have to be followed to export Indian products to other countries which are mentioned as below. You can also check out these requisites in detail from platforms like Craftezy.

  • To begin, anyone interested in exporting Indian handicrafts must establish a company. 
  • They must then register with the Director-General of Foreign Trade to obtain a 10-digit Import Export Code (IEC).
  • Furthermore, businesses must register Export Promotion Councils to take advantage of government benefits and other incentives.

Government Regulations and Schemes for Promoting Export

Government Regulations and Schemes for Promoting Export

The Indian government established the Export Promotion Council for promoting, protecting, and increasing the overall export of Indian products. Export Promotion Council of India is an apex body assisting with export promotion. It helps to increase awareness on export marketing and self-finances all the promotional activities related to exports. It has increased incentive rates under the export from India which will help exporters to recover the input costs involved in the production of the products. This will lead to competitive pricing and an increase in exports. Important government rules and regulations regarding exports are as follows:

  1. To start an export business from India, obtain an importer exporter code, and get yourself registered with the concerned export promotion organization.
  2. There should not be any export restrictions on the product.
  3. Prepare and implement the promotional activities to highlight the product.
  4. Export prices should be fixed both on Freight On Board [FOB] and Cost Insurance Freight [CIF].
  5. While selecting buyers, their credentials must be checked and verified by the competent authority.

The government of India has set up certain regulations and schemes to provide major assistance to manufacturers in export activities. The schemes are mentioned as below:

  • Merchandise Export from India: To encourage the production and exports, an incentive of duty credit facility is available to the handicraft exporters.
  • Market Access Initiative: Space charges are reimbursed for the exporters subject to conditions for participation in international shows.
  • Duty-Free import provision: The major manufacturers successfully carrying out exports are allowed duty-free import of consumables and tools to enhance and improve the quality of products.

Export Procedures and Guidelines

Export Procedures and Guidelines

There can be a large number of products under manufacturing but only some of them are suitable for exports. Before deciding on the export of products, the business owners must take into account the market history and past trends. They have to make future projections as well to get an idea of potential growth. The export statistics also need to be analyzed to decide on quantity and pricing. Any feedback and suggestions from industry experts provide valuable inputs in finding the best buyers for exports. To select suitable overseas customers for export business the manufacturers have to focus on increasing brand awareness about the product. A company planning to engage in export activities is required to obtain an IEC number from the regional joint Director of Foreign Trade. After obtaining the IEC, the exporter needs to ensure that all the legal compliances are fulfilled as per trade laws. If an export license is required, the exporter must accordingly apply for the license. An exporter is also required to register with the Indian Chamber of Commerce which gives certification that the exported goods originated in India.

Measures Taken by the Government

Various measures are taken by the Government of India for the promotion of exports

  • Extension of the Foreign Trade Policy up to 2021.
  • The Advance Authorization Scheme and the Export Promotion Capital Goods (EPCG) Scheme enable duty-free import of raw materials and capital goods for export-oriented production. 
  • The equalization scheme, which provides pre and post-shipment export credit, has been extended up to September 2021.
  • A scheme for exemption of duties and taxes on export products to encourage export activities.
  • Scheme for extension till March 2024.

Use of Technology to Export Products from India

Use of Technology to Export Products from India

The technological tools and techniques have opened up new opportunities for product manufacturers to increase the visibility of their products through an online platform and reach out to more customers globally. This is very much essential as most of the product manufacturers, as well as customers, are taking advantage of e-commerce platforms to export and import products in different parts of the world. 

One of the most popular and efficient online trade platforms providing e-commerce facilities to exporters is Craftezy. It enables manufacturers to increase their product visibility across the world by using this platform. The manufacturers can register on this platform and showcase products to get export orders from overseas customers who also have access to this platform. Craftezy allows avoiding various hassles and takes care of all necessary formalities to export the product at the customer location with ease and convenience. Craftezy provides efficient logistics, advanced tools, and flexible payment options and digitizes the entire process, which helps to manage the export activities to cater to the global customers more effectively.

The Favorable Environment

The Favorable Environment

Indian products, especially the small cottage industry products are being greatly preferred by people not only in India but also in other parts of the world. There is a wide market outside India that needs to be explored and accessed to promote and export products from India. There are different guidelines and procedures provided by the government to help product manufacturers follow the systematic steps that facilitate their export activities. As a manufacturer, one should study the market trends and export scenarios to gather adequate and updated information and decide on export strategies accordingly. The initial step is to expand the customer base and reach out to them with product features and benefits. The latest technological tools also provide support in carrying out the export business efficiently.


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