How to start an import business in India in 2027
An import business can connect Indian customers with overseas products, components and raw materials. The opportunity must be evaluated against customs duty, product restrictions, quality, foreign-exchange exposure, logistics and working capital.
1. Select a product and validate demand
Identify a clear customer problem and estimate realistic demand. Speak with retailers, manufacturers, distributors or end users before placing an order. Compare domestic alternatives and calculate whether an imported product can compete after all costs.
2. Check the import policy first
Find the correct ITC(HS) code and review the current DGFT import policy. Products may be free, restricted, prohibited or subject to policy conditions. Additional rules may apply through BIS, FSSAI, CDSCO, WPC, plant quarantine or other regulators depending on the product. Never order first and investigate approvals later.
3. Set up the business and obtain IEC
Choose a suitable legal structure, obtain PAN, open a business current account and apply for an IEC through the official DGFT portal where required. Keep entity and bank details accurate and complete the annual IEC update or confirmation in the prescribed period.
4. Find and verify suppliers
Shortlist suppliers through trade fairs, industry associations, verified B2B platforms and referrals. Check company registration, factory or warehouse address, product specifications, export history, references and sample quality. Use video inspections or independent pre-shipment inspection where appropriate.
5. Calculate landed cost
Do not compare supplier price alone. Include product price, inland origin transport, export handling, freight, insurance, customs duty, applicable cess or taxes, port charges, customs broker, testing, local transport, bank charges, currency conversion, financing and expected defects. Confirm the applicable customs valuation and duty treatment with a qualified customs professional.
6. Agree commercial terms
Specify product standards, quantity, packaging, delivery schedule, inspection, warranty, remedies, payment milestones and the Incoterm with a named place. For first transactions, avoid unsecured advance payments to unverified suppliers. Consider secure payment structures and professional advice.
7. Prepare import documents
The core import document categories under the Foreign Trade Policy include a transport document, commercial invoice-cum-packing list and Bill of Entry. Product-specific approvals and additional documents may also be required.
8. Clear customs and receive goods
Coordinate with your customs broker, shipping agent and bank. Ensure the Bill of Entry, valuation, classification, country of origin and supporting documents are accurate. Inspect goods on arrival and record shortages, damage or non-conformity immediately.
Common mistakes
- Importing a restricted product without permission.
- Using an incorrect HS code or undervaluing goods.
- Ignoring product certification and labelling.
- Paying a new supplier in full without verification.
- Forgetting freight, duty, port and working-capital costs.
- Assuming a supplier's certificate is automatically accepted in India.
FAQs
Is IEC required to import goods?
Generally, yes, unless a specific exemption applies. Confirm the current DGFT policy for your case.
Can an individual import for personal use?
Certain personal imports may fall under exemptions or different rules. Commercial resale is a different activity and needs appropriate compliance.
What is the most important import cost?
The full landed cost matters; customs duty is only one component.
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Official resources
- DGFT: https://www.dgft.gov.in/
- ICEGATE: https://www.icegate.gov.in/
- CBIC Customs: https://www.cbic.gov.in/
This is general information, not customs, tax or legal advice. Confirm current product rules and duty rates before ordering.