Complete Guide to Importing Goods to India: Process & Services

India is one of the most lucrative markets for importers due to its growing economy, high population, rapid modernisation and increasing disposable income of its middle-class segments. As of recent data, the country has imported goods worth US$515.21 billion and services worth US$135.93 billion in FY25-26. Total imports in 2025 stand at US$651.13 billion, up from US$620.14 billion in the previous year.

Imports to India encompass a wide range of goods, from raw materials, precious metals and industrial components to consumer goods and advanced technologies. The most imported products in India in 2025 have been petroleum oil, gold, high-end electronics, smartphones, gemstones, industrial machinery, and integrated circuits. As of November 2025, our top import sources have been the USA, China, Thailand, Hong Kong, Brazil, and the United Arab Emirates.

India’s rapid industrialisation, growing consumer needs, and energy requirements shape what products and services are frequently imported. India’s ‘Make In India’ and ‘Atmanirbhar Bharat’ result in demand for raw materials, industrial equipment, high-end machinery and steel. Moreover, as Indian consumers get more disposable income, they desire premium consumer goods, like laptops, cars and jewellery.

Here are some of the reasons and benefits of starting an importer business in India:

Access to a Broad Portfolio of Products: Importer businesses can procure products from many different countries and regions. This makes them an ideal supplier for e-commerce stores and customers looking for rare and unique products or brands. By offering unique products in low supply, importers can earn a high profit margin.

Higher Profits Due to Positioning: Importers are ideally positioned to find high-value products for affluent customers. They can connect with overseas exporters in regions around the world to find products at competitive prices and sell them at high margins. By bringing in branded, one-of-a-kind, handcrafted or exquisite products, importers can access higher price points.

Risk Diversification: Since importers are not limited to a single geography, they can hedge against local disruptions by creating a network of global suppliers. Building contacts gives them negotiating power over foreign exporters, lowering input costs and the risks of a single market.

Ability to Get Assured Profits: Importers can get assured profits by analysing the market demand and selling only high-demand products in short supply. For this strategy to be effective, import businesses should calculate all expenses, including logistics, duties, and local transportation, and ensure a net profit.

Gaining Competitive Advantage: Opening an import business lets you outcompete your rivals by offering exclusive products or lower prices. By sourcing goods from countries with lower production costs or advanced manufacturing facilities, you can improve your offerings and gain more customers.

Government Incentive Schemes: The Indian Government offers various export promotion schemes, such as the Advance Authorisation (AA) Scheme and Export Promotion Capital Goods (EPCG) Scheme. These initiatives also benefit businesses that import capital goods, machinery and raw materials used to manufacture export products.

Before you start to import products in India, make sure that you know all the requirements for registering as an importer:

Mandatory Registrations

IEC: The Importer-Exporter Code (IEC) is issued by the Directorate General of Foreign Trade and is mandatory for all imports and exports.

Business Registration: You can register as a sole proprietorship, partnership firm, Limited Liability Partnership (LLP), private limited company, or public limited company.

GST Registration: You need this for invoicing and claiming IGST refunds.

Bank Account: You need to register a current account with an AD bank.

Udyam and DPIIT Registration: Your business needs these to register as a startup or MSE, respectively.

Approvals & Licences

Advance Authorisation: Required to purchase products restricted under the ITC-HS Code

Certifications: FSSAI licence (foods), BIS (electronics), CDSCO (medical devices), etc.

Labelling and Packing: Country of Origin details, manufacturer details, MRP (maximum retail price), net weight, etc.

Other Requirements

Import Declaration: Used to disclose the full value of items to be imported

Letter of Credit: Used to make payments to exporters

Marine and Cargo Insurance: Protects imported goods against loss or damage during transit

You will need the following documents for the necessary registrations, customs clearance and other processes:

Mandatory Documents

Commercial Invoice cum Packing List: This is a combined document with a commercial invoice for the imported product and a packing list for all items in the shipment.

Bill of Lading or Airway Bill: Issued by the customs or airport authorities, this provides proof of shipment.

Bill of Entry: This document is filed by the importer with the customs before the product is shipped, and is used to verify the contents of the shipment.

IEC Certificate: This is the primary document identifying the importer.

Additional Documents

Import Licence: Issued after prior authorisation for importing restricted goods

Certificate of Origin: Obtained from the exporter to calculate taxes and preferential rates

Inspection Report: Issued by the notified authorities in the exporter’s country

KYC Documents: Proof of identity and address for compliance needs

Importers may need to show an insurance certificate if they have purchased a marine insurance policy. This document shows whether the imported goods are covered and the sum insured amount.

Follow the given steps to seamlessly import products to India for your customers:

Step 1: Get prepared by applying for the necessary registrations, including the 10-digit IEC, GST registration and business registration. Keep all the necessary documents ready.

Step 2: Research overseas markets to look for products in your specific niche and their price, availability, demand, and quality standards. Then, find the 8-digit ITC-HS Code (Indian Trade Classification)(Harmonised System) of your selected product to check its duties, restrictions and other details.

Step 3: Open a business current account with an AD (Authorised Dealer) Category-I bank and enable forex transactions on it. Then, start looking for buyers on B2C and B2B portals.

Step 4: Once you have a buyer ready, you need to find overseas suppliers via export agents, trade associations, or government portals like the Indian Trade Portal. Decide on the Incoterms to define the terms of your contract with the exporter and sign the document.

Step 5: Depending on the product you want to import, you may need an import licence, advance licence or advance authorisation. Then, place your order directly or through an indent house or a canalizing agency, such as MMTC.

Step 6: After getting confirmation for the dispatch of your shipment, complete your payment. This is usually done by issuing a Letter of Credit from your bank. Next, contact the customs department, appoint clearing and forwarding agents, and get pre-import clearance.

Step 7: Furnish an import declaration in Bill of Entry format to the customs office along with your BIN (Business Identification Number) and supporting documents. This includes commercial invoice, packing list, Bill of Lading/Airway Bill, Letter of Credit, and other documents submitted by the exporter.

Step 8: After the goods are shipped, customs officials will check the shipment against your Bill of Entry and issue a ‘pass out’ order.

Step 9: Then, you need to pay the applicable duties, goods-specific charges, tariffs, anti-dumping charges, and IGST.

Step 10: Once all charges are paid, you will receive the shipment and can now sell the products to your customers. To file for refunds/incentives, you need to file the necessary application on the ICEGATE/DGFT portal and upload the invoices.

The following are some of the most popular imported items in India:

Petroleum and Mineral Oils: As our domestic production barely meets total energy demand, crude oil and mineral oils remain a top Indian import. Primary sources include Russia, Saudi Arabia, Iraq, and the United Arab Emirates.

Gold and Precious Metals: Gold and precious metals are significant to India’s culture, leading to high imports, especially during festive seasons. They are also used for investments. Top sources are the United States Emirates, Switzerland, and South Africa.

Electrical Machinery and Equipment: India imports advanced electrical machinery, circuits and automation systems to support its rapid industrialisation and manufacturing efforts. Top sources include Vietnam, South Korea, and China.

Heavy Industrial Machinery: Due to low local availability, India imports heavy and complex industrial machinery, such as construction equipment, textile units, food processing systems, etc. Top sources include Germany, Japan, and the United States.

Iron and Steel: This category includes slabs, coils, sheets and finished steel products, used for industrial and infrastructure growth. Sources include Japan, China, and South Korea.

Organic Chemicals: Under this category, chemicals such as fertilisers, bio-plastics, precursor chemicals, etc., are imported. Top sources are China, Singapore and the USA.

Aircraft and Defence Equipment: This includes advanced military equipment, weapons, sensitive technology and aircraft for the defence and aerospace sector. Top sources include Russia, France and the United States.

Plastics and Plastic Products: Under this category, India imports PVC, polyethylene, and various synthetic compounds for packaging, industrial parts and consumer goods. Primary sources include China, the USA and Germany.

Animal Fats and Vegetable Oil: India imports palm oil, sunflower oil, soybean oil, and other edible oils to keep up with household demand. Leading suppliers include Malaysia, Indonesia, and Ukraine.

Technical and Medical Devices: This includes various advanced and proprietary medical devices, optical devices and laboratory equipment. The main sources are the USA, Japan and Germany.

Here is a list of customs duties, tariffs and taxes levied on imports in India:

Basics Customs Duty (BCD): BCD is charged on all goods that enter India. There are four slabs of BCD, namely 5%, 15%, 25% and 35%. Some products are exempt from BCD.

Custom Tariffs: Specific custom rates are charged on certain products like rice (60%-80%), wheat (100%), sugar (100%), and edible oil (45%-100%).

Special Additional Duty (SAD): SAD at a flat 4% applies to imported products whose domestic versions have equivalent sales tax.

Social Welfare Surcharge: This is an additional 10% tax applicable to products that have a 35% basic customs duty rate.

Countervailing Duty: It’s an additional 16% duty charged on products that have gained an unfair tax advantage in their country of origin.

Anti-dumping Duty: This is a penalty on imports from specific countries for unfair trading practices.

Integrated GST (IGST): This is charged on all imports at rates as per prevailing GST slabs, i.e., 0, 5%, 18% and 40% for sin goods.

Starting a business to import products in India may seem overwhelming at first, but with sufficient preparation, the processes detailed above can be completed seamlessly. Before placing your order, ensure to check the Foreign Trade Policy guidelines, certificates and licences required, duty rates and supplier information. Moreover, you should know the latest regulations and avoid mistakes in your documentation.

To keep your purchased products secure during transit, you may want to get marine insurance online. Opt for TATA AIG Transit Insurance Online for comprehensive risk protection that covers shipments from 130+ countries.