Want To Start Textile Exporting From India? Here’s How You Can Get Started

Exporting textiles is a lucrative business opportunity for many given India produces several exotic and important fabrics that are widely used in manufacturing garments across the world. The process of starting an export business may sound daunting to a lot of people, but in reality it is not. You don’t need to have ships to start an export business and get your products to different parts of the world.

The process of setting up a business is the same for all businesses in India and very commonly known by all. However, there are a few steps from setting up your business to starting your export journey. So, let’s review the various steps you need to do to start exporting textiles.

Steps To Start Exporting Textiles From India

1. Licenses & Legal Prerequisites

You need to get an Import Export Code (IEC) from the Directorate General of Foreign Trade (DGFT) in India before you can start your exporting business. The entire application process is online and takes very little time. Once you have the code, you also need to make sure you have a GST number. It is mandatory for any products sold by your business to collect GST as per government norms. Once you have these two things, you are ready for the next step. 

Also, while it is not explained in detail, you also need to set up a company be it as a Limited Liability Partnership (LLP) or a Private Limited Company before you can carry on with the next steps. Your company needs to have its own bank accounts and assets.

2. Financing & Funding

Exporting is a capital intensive business. You need significant funding and financing to get your products from India to a foreign country. Banks offer export financing for businesses and you must have all the documentation and licenses mentioned above to be eligible for financing.

Based on your requirement you can opt for funding from investors or financing from banks. If you are a manufacturer that already has a manufacturing plant and aims to start exporting your products, your capital requirements may be met by raising funding from investors. However, if you are starting fresh and need to set up your manufacturing plant, you may need significant financing from banks in order to get started.

3. Certifications From Regulatory Bodies

Regulatory bodies in this regard refers to the Apparel Export Promotion Council (AEPC), who offers a Registration cum Membership Certificate to businesses interested in exporting their textiles. This certificate is a vote of confidence from the regulatory body that your textiles are manufactured to the highest quality and complies to the several manufacturing compliances set up by AEPC. 

Apart from that, once your products are manufactured, you also need to get them certified by accredited quality control agencies like Quality Control of India. This certification is also crucial in ensuring your foreign buyers have the confidence in your products that they are made of the highest quality and follow international standards of manufacturing and quality.

4. Find Textile Export Orders

This is the hardest part of the process. To find orders you need to network and make connections with international buyers for your textile. You also need to make strategic partnerships with Indian exporters to understand the markets where your products have the highest value. In certain cases, having domestic partners can help you increase your revenue as they can purchase textiles from you to complete their orders too.

5. Find A Shipping Partner

Lastly, once you have an order, you need a shipping partner also known as a freight forwarder to get your products from India to their destination. Shipping partners handle your products and handle custom inquiries so make sure you have the documentation and paperwork to ensure your products can be safely delivered to their destination without any problems. Any mistake in this part can be very expensive for your business, so make sure you are extra careful in this part.

Conclusion

These are the complete steps on how you can get started with your export business in India. Once your textiles have reached their destination and you have received the payment for the order, you can pay back your investors or clear any financing loans you may have taken. You may even receive recurring orders from the same client or find other clients from industry references. The process remains the same for every order you receive. 

To learn more about textile exporting and the apparel industry in general, check out CheerSagar. CheerSagar is one of the top apparel manufacturers and exporters in India that can help you export your textiles too. Check out the website to learn more about exporting services.