Selling to India – Overview & Tips

Why consider selling to India?

India is the world’s most populous country and one of its largest economies. The World Bank’s India data reports a population of approximately 1.46 billion and GDP of about US$3.96 trillion for 2025. The same data records economic growth of 7.6% in 2025.

Those headline figures do not mean every product will succeed. Purchasing power, competition, distribution costs and customer preferences vary significantly. Exporters should assess the opportunity at product, state, city and customer level rather than relying only on national growth statistics.

Promising but competitive sectors

Opportunities may exist in industrial machinery, specialist components, clean-energy technologies, healthcare products, food and beverage, consumer products, education, digital services and premium or differentiated brands. However, some sectors have ownership restrictions, product standards, price controls or specialised approvals.

Choose the right way to enter the Indian market

The appropriate route depends on the product, expected sales, regulatory exposure and the level of control required.

The Government-supported Invest India guide to setting up a business provides a useful starting point. Foreign companies should also take Indian legal and tax advice before choosing an entity or signing a long-term distribution arrangement.

Indian business culture: practical guidance

India is highly diverse. Business practices can differ between regions, industries, generations and companies, so cultural observations should be treated as guidance rather than fixed rules.

• Invest in relationships. Trust and continuity often influence long-term business decisions.
• Confirm decisions in writing. After meetings, send a concise record of prices, specifications, responsibilities and dates.
• Identify the decision-maker. Organisational structures may be hierarchical, but this varies by company.
• Allow time for negotiation. Price is important, but service, reliability, credit, warranties and local support can also decide a sale.
• Use clear English. English is widely used in business, but avoid slang and ambiguous contract language.
• Respect local calendars. Public holidays and major religious festivals differ by state and can affect meetings, transport and production.

Indian tariffs, taxes and import policy

India applies customs duties and domestic taxes according to the product’s classification, origin, value and any available preferential arrangement. The total landed cost may include Basic Customs Duty, Social Welfare Surcharge, Integrated GST and, for some goods, cess, anti-dumping or safeguard duties.

India now has multiple trade agreements, including arrangements with ASEAN, Japan, South Korea, Australia and the United Arab Emirates. New agreements and tariff schedules continue to develop. Preferential duty is not automatic: the goods must meet the applicable rules of origin and documentary requirements.

1. Identify the correct Indian Trade Classification (ITC HS) code.
2. Check whether the import policy is free, restricted, prohibited or subject to conditions.
3. Confirm the current duty calculation and customs valuation treatment.
4. Check for a trade remedy, such as anti-dumping duty.
5. If claiming preferential duty, verify origin rules before issuing or requesting an origin document.

Use the DGFT ITC HS import-policy tool and the ICEGATE Trade Guide on Imports. Because rates and product conditions change, ask an Indian customs broker to confirm the calculation before agreeing a delivered price.

Product standards, certification and labelling

There is no single label or certification rule covering every import. Requirements depend on the product, its packaging and how it will be sold. The importer and exporter should establish the applicable rules before production or labelling begins.

BIS certification and Quality Control Orders

Bureau of Indian Standards certification is generally voluntary, but the Indian Government makes compliance compulsory for specified products through Quality Control Orders and other schemes. These can affect electrical goods, electronics, machinery, chemicals, construction materials, steel products, toys and other categories.

Check the current BIS compulsory-certification lists and upcoming Quality Control Orders. Do not assume that a CE mark, overseas test report or certification accepted in another country replaces an Indian requirement.

Pre-packaged consumer goods

Pre-packaged commodities sold in India may need declarations under the Legal Metrology rules. Depending on the product and current rules, these can include the manufacturer’s, packer’s or importer’s details, country of origin, generic product name, net quantity, month and year information, consumer-care details and maximum retail price inclusive of taxes.

The exact declaration and whether information may be added before customs clearance should be confirmed with the importer or a Legal Metrology specialist. Avoid printing a large production run until the artwork has been approved for India.

Food and regulated products

Imported food is regulated by the Food Safety and Standards Authority of India. Food labelling, ingredients, nutrition, allergens, vegetarian or non-vegetarian identification, importer details, shelf-life and claims can all require review. Consult the FSSAI food-import resources and the current Labelling and Display Regulations.

Other products—including cosmetics, medical devices, pharmaceuticals, telecoms equipment, plants, animal products and chemicals—may come under different regulators. Product-specific advice is essential.

Import documentation and customs clearance

The old assumption that India has “no formal import-documentation requirements” is incorrect. Documentation varies, but a commercial import commonly involves:

• Bill of entry filed by or for the importer
• Commercial invoice
• Packing list, or a combined commercial invoice and packing list where accepted
• Bill of lading or air waybill
• Insurance document where relevant
• Certificate or declaration of origin where required or used for preference
• Import licence, registration, test certificate or product approval where applicable
• Other product-specific certificates, such as phytosanitary, health or fumigation documents

An Indian importer normally needs an Importer-Exporter Code, subject to limited exemptions. The Directorate General of Foreign Trade explains IEC requirements.

Quotations, payment and contracts

The Indian rupee (INR) is India’s currency. Cross-border receipts and payments operate under the Foreign Exchange Management Act and Reserve Bank of India directions. This does not mean every transaction must use one particular payment method or currency.

Parties may agree an appropriate invoicing currency and payment structure, subject to banking, tax and foreign-exchange rules. Common options include advance payment, documentary collection, open account and letters of credit. The right choice depends on credit risk, bargaining position, cost and the parties’ trading history.

• Carry out credit and identity checks on a new customer or distributor.
• State the agreed Incoterms® rule and named place precisely.
• Define currency, bank charges, payment date and documents required.
• For letters of credit, have a bank or trade-finance specialist review the draft before issue.
• Include product acceptance, warranty, intellectual-property, termination and dispute-resolution terms.
• Consider export-credit insurance where appropriate.

Current foreign-exchange information is available from the Reserve Bank of India’s FEMA resources.

Protect intellectual property and manage disputes

Registering a company or domain name does not automatically protect a brand. Consider Indian trade-mark, patent and design protection before disclosing valuable information or appointing a distributor. Search and filing resources are available through Intellectual Property India.

Use written confidentiality, manufacturing, distribution and licence agreements. Specify governing law and a workable dispute-resolution mechanism. India has legislation covering arbitration, commercial courts and mediation, including the Mediation Act 2023. Obtain Indian legal advice rather than copying a clause from another market.

If your India strategy also includes sourcing products

Some companies selling into India also buy products, components or packaging from Indian manufacturers. In that situation, market-entry work and supply-quality control should be treated as separate disciplines.

Before placing a significant order, verify the supplier’s legal identity and manufacturing capability. Give the factory clear specifications, approved samples, tolerances, packaging artwork and testing requirements. Depending on the risk, checks may be needed during production, before shipment or during container loading.

Selling to India: final checklist

• Research demand by product, region and customer segment.
• Complete due diligence on agents, distributors and buyers.
• Agree who will act as importer of record.
• Confirm the ITC HS code, import policy and landed cost.
• Check BIS, Legal Metrology, FSSAI and other product-specific rules.
• Approve India-specific labels and packaging before production.
• Register important intellectual property early.
• Use a written contract and appropriate payment protection.
• Have the importer and customs broker approve draft shipping documents.
• If sourcing in India, define the quality-control and inspection plan before production.

Frequently asked questions about selling to India

Do I need an Indian importer to sell goods in India?

Commercial goods normally need an eligible Indian importer of record to complete import formalities. The importer generally requires an Importer-Exporter Code unless an exemption applies.

Does every product imported into India require BIS certification?

No. BIS certification is not compulsory for every product. However, specified products are covered by mandatory certification schemes or Quality Control Orders. Check the current product list using the exact Indian standard and ITC HS classification.

What documents are usually required to export goods to India?

Common documents include a commercial invoice, packing list, transport document and bill of entry. Origin documents, licences, test reports or health, phytosanitary and fumigation certificates may also be required depending on the product and tariff treatment.

Can imported products use English labels in India?

English is widely used, but the required language and declarations depend on the product and applicable regulation. Consumer goods, food and regulated products can have detailed India-specific label requirements. The importer should approve final artwork before production.

What is the safest payment method when selling to a new Indian customer?

There is no single safest method for every sale. Advance payment or a correctly structured letter of credit may reduce seller risk, while other arrangements may suit established customers. Check the buyer, agree terms in writing and ask a bank or trade-finance adviser to review higher-value transactions.

Can Goodada inspect products made in India?

Yes. Goodada can arrange quality-control inspections and supplier audits across India. The inspection scope can cover the agreed product specifications, quantities, workmanship, measurements, packaging, labels and other buyer requirements.