Profitable Export from India to the USA: A Complete Guide

If you are an eCommerce seller, starting your export business to the USA may not be easy. You will need intense research and understanding of various factors like the US market, products in demand, the customs process for exporting, the legal requirements, etc. To make international shipping hassle free, here is an actionable plan that will help you export to the USA from India profitably. 

The largest export market for India is the United States. The bilateral trade between India and the US increased by 7.65 per cent in 2022–2023 to USD 128.55 billion from USD 119.5 billion in 2021–2022 (India Import and Export Data).  India’s 2023 exports to the United States were valued at USD 75.81 billion, according to the United Nations COMTRADE database on global trade.

What are the Products in Demand in the USA Market?

To begin a profitable export from India to the USA, businesses should first know the export value of each of the markets.

The statistical data shows that the US market is nearly double that of the second largest export market for India, which is the UAE. Hence, planning your export from India to the USA will have a higher export value than exporting to other markets.

Now, let us explore the products that are in high demand in the USA and are imported in large quantities from India: 

• Diamonds: India is renowned for its exceptional skill in cutting and polishing diamonds. The United States, a major consumer of these luxurious items, imports a significant amount of diamonds from India. This industry employs millions and contributes substantially to India’s exports to the US.
• Medical Appliances and Accessories: Indian medical products are of high quality and widely exported. The US market demands various Indian medical supplies, including surgical disposables, face masks, bandages, gauze, surgical caps, and sterile gloves. These exports highlight India’s role in global healthcare.
• Refined Petroleum: India, the world’s second-largest refining hub, exports a substantial amount of refined petroleum to the US. These exports, including petrol, diesel, and jet fuel, are crucial for meeting American energy needs and strengthening bilateral trade relations.
• Jewellery: Indian gold and silver jewellery, often featuring intricate designs and cultural motifs, is highly popular in the US. Major exporters like Titan Company, Gitanjali Gems, and PC Jeweller contribute to the steady flow of jewellery exports, showcasing India’s rich tradition and craftsmanship.
• Rice: India, a leading rice producer, meets the growing demand for rice in the US in which both basmati and non-basmati varieties are exported. Popular brands include Royal Shef Secret and Dawat Super for basmati, and Sona Masoori for non-basmati. These exports enhance food security and cultural ties.
• Automotive Components: India exports a wide range of automotive parts to the US, including engine parts, transmission components, and electrical systems. Companies like Bharat Forge, Motherson Sumi Systems, and Bosch India ensure high-quality standards and competitive pricing, making India a key supplier to the American automotive industry.
• Textiles and Apparel: India is a major exporter of textiles and garments to the US. From traditional fabrics to contemporary apparel, Indian products cater to diverse tastes. Companies such as Aditya Birla Fashion & Retail, Raymond, and Arvind Limited play significant roles. The popularity of Indian ethnic wear and sustainable fabrics boosts these exports.
• Chemicals and Petrochemicals: India exports a variety of chemical products to the US, including organic and inorganic chemicals, plastics, and specialty chemicals. Major players like Reliance Industries, Indian Oil Corporation, and Tata Chemicals are pivotal in this sector, emphasizing quality and innovation.
• Machinery: India’s growing technical expertise is reflected in its machinery exports to the US. Agricultural machinery, construction equipment, and other technical solutions from India are increasingly in demand, showcasing international collaboration and technological advancement.
• Agricultural Products: India’s diverse climate and geography support a wide range of agricultural exports, including fruits, vegetables, and spices. These products add exotic flavors to American kitchens and promote cultural exchange through cuisine.

Sell in the USA with Popular eCommerce Platforms: Outstanding Online Marketplaces

Backed by the knowledge of the best-selling Indian exports in the USA, let us find the top marketplaces for eCommerce businesses.  In the US there are over 1 million online marketplaces, with over 24 different types of platforms for different niches. Here are some of the outstanding online marketplaces you should consider for your business:

• Amazon: If you want to start your export business from India to the USA, Amazon is the most recommended online marketplace for you. Begin by registering with Amazon Global Selling to sell in over 30 export product categories. You can also choose to ship via Fulfillment by Amazon (FBA), a platform that bundles all Amazon services like prime benefits, customer service, hassle-free returns, storage, delivery, pickup, etc. You also have the choice of using third-party logistics services. Amazon gives you access to sell to over 100 million Prime members and more. 
• eBay: One of the oldest eCommerce platforms in the USA, it has a large number of loyal customers. You will need to register on the platform and add your profile before you can pick CBT as your shipping method. Offer a local address and a US bank account for this. Additionally, select the international shipping listings and the countries you will ship to. Next, you will choose your preferred shipping provider and include locations where you will not offer shipping services.
• Shopify:  One of the trending online marketplaces for Indian companies wanting to start an export business in the USA. Shopify is a highly integrated platform with loads of features for automated commerce. It has over 300,000 active merchants.
• Esty: A specialty products marketplace, Etsy is the most-loved platform in the US for unique, vintage and handmade products. The most popular categories it offers are jewelry, home and living, accessories, craft supplies, clothing and shoes, wedding items, toys, games, and collectibles. When you register on Etsy, you can access its customer service team.

The Entire Procedure for Export from India to the USA

When you want to start your Export from India to the USA, You will need to process different sets of documents. Let us look at some of the main applications and processes you need to complete:

1. Market Research and Product Selection

Begin by conducting thorough market research to understand the market demands and potential opportunities in the US. Look for products that are trending and allowed for export from India. This will help select the right products with a good market fit in the US.

2. Obtain an Import Export Code (IEC)

The Import Export Code (IEC) is essential for exporting goods from India. It is a mandatory requirement and can be obtained online through the DGFT (Directorate General of Foreign Trade) website. Without an IEC, you cannot legally export products from India.

3. Register With Export Promotion Councils

Register with the relevant Export Promotion Council based on your product category. These councils offer various benefits, such as market insights, networking opportunities, and access to export incentives. They can provide valuable support and information to help you succeed in exporting.

4. Understand Export Documentation Requirements

Get familiar with all the necessary export documentation. This includes a commercial invoice, packing list, certificate of origin, bill of lading or airway bill, and any other documents required for your product. Proper documentation is crucial for smooth export operations.

5. Compliance with Legal and Regulatory Requirements

Ensure that you comply with both Indian and US export laws and regulations. This includes obtaining necessary export licenses, paying customs duties, and understanding tariffs. Be aware of trade agreements and preferential tariffs that may apply to your products, which can reduce costs and simplify the export process.

6. Customs Clearance and Documentation

Prepare all required customs documentation accurately and thoroughly. This includes filing shipping bills through the ICEGATE (Indian Customs Electronic Gateway) portal and obtaining necessary certificates or permits. Accurate documentation is vital for the customs clearance process.

7. Packaging and Labeling

Ensure your products are properly packaged and labelled according to US regulatory standards. This might include compliance with specific labeling requirements, such as FDA regulations for food, drugs, and cosmetics. Proper packaging and labelling ensure that your products meet US standards and help avoid issues upon arrival.

8. Arrange Shipping and Logistics

Select a reliable freight forwarder or shipping company to transport your goods from India to the US. Coordinate with them to ensure that logistics operations run smoothly. A good shipping partner will handle all aspects of transportation, including documentation, customs clearance, and delivery.

9. Insurance Coverage

Consider obtaining insurance coverage for your goods during transit. This will protect against loss or damage during shipping. Insurance provides financial protection in case of unforeseen issues during transit.

10. Payment and Financing

Agree on payment terms with your US-based buyers and arrange any necessary financing or payment guarantees. Consider using secure payment methods such as letters of credit to mitigate payment risks. Clear payment terms and secure payment methods help ensure that you get paid for your products.

11. Export Declaration and Filing

File the required export declaration forms with the Indian customs authorities through the ICEGATE portal. This step is crucial for legal compliance and smooth export operations. Proper filing ensures that your exports are documented and tracked by customs authorities.

12. Post-Export Documentation and Compliance

Complete any post-export documentation requirements. This includes submitting proof of export and complying with post-export obligations or regulations. Ensuring that all post-export documentation is in order helps maintain compliance and can be important for future exports and any export incentives you might be eligible for.

Export Charges to the USA

One of the most important aspects of export business is the export price.

Exporting goods to the USA involves various charges that businesses need to consider. These charges can vary based on the type of product, the shipping method, and other factors. Here are the main charges involved:

1. Shipping Costs: Shipping costs depend on the weight and volume of the goods and the shipping method (air, sea, or land). Air freight is usually faster but more expensive, while sea freight is more economical for larger shipments.

2. Customs Duties and Taxes: The US imposes customs duties on imported goods. The duty rate varies based on the product classification according to the Harmonized Tariff Schedule (HTS). Additionally, state or local taxes could also be applicable.

3. Insurance Costs: Insurance is important to protect goods during transit. The insurance cost depends on the value of the goods and the level of coverage required.

4. Packaging Costs: Proper packaging ensures the goods arrive safely. Packaging costs vary based on the type and amount of packaging materials used.

5. Handling and Logistics Fees: These fees cover the cost of loading, unloading, and handling the goods at various points during the shipment process. They can include terminal handling charges, warehouse fees, and delivery charges.

6. Documentation Fees: Preparing and processing export documentation can incur costs. This includes fees for bills of lading, certificates of origin, export licenses, and other necessary documents.

7. Compliance and Inspection Fees: Certain products may require inspections and compliance checks, which can incur additional fees. This includes fees for safety inspections, quality control, and regulatory compliance.

8. Port and Airport Charges: These charges cover the use of port or airport facilities. They can include docking, loading and unloading fees, and storage fees if goods are held at the port or airport.

9. Brokerage Fees: Customs brokers facilitate the import process and ensure compliance with regulations. Their fees vary based on the complexity of the shipment and the services provided.

10. Currency Conversion Fees: If payments are made in different currencies, fees for currency conversion might be applied. These fees depend on the exchange rate and the financial institution handling the transaction.

ShiprocketX: Assisting Exporters with International Shipping

A leading shipping solution provider, ShiprocketX is a cross-border platform that aids exporters in meeting customer needs in over 220+ countries and territories. ShiprocketX offers an international shipping rate calculator on its website to help exporters compare shipping rates. It focuses on providing low freight rates by partnering with multiple courier providers. Exporters can track orders across 12+ sales channels on a single platform. Real-time updates on orders in transit are provided via email, SMS, and WhatsApp. The platform facilitates door-to-door deliveries with transparent B2B delivery access and no weight restrictions. ShiprocketX offers fee-based subscriptions for medium to large sellers. These include negotiated shipping rates, multiple eCommerce channel integrations, and emergency support. It also integrates multiple marketplaces, carriers, and carts into one international shipping platform.

Conclusion

To start exporting from India to the USA, first study the US market for the products you want to sell. This research will help understand the demand and competition for your products. Next, choose an online marketplace in the US, such as Amazon, Shopify, Etsy, or eBay, and register as a seller. These platforms provide access to millions of potential buyers, increasing your chances of making successful sales.

After choosing a marketplace, prepare the necessary documents to obtain a license for running an export/import business from the Indian government. Make sure to renew this license regularly to ensure smooth operations.

During the registration process on the marketplaces, you will also need to choose your courier partners. Selecting reliable shipping partners is crucial for timely and safe delivery of your products to customers in the USA.