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Is it profitable to export readymade garments from India?

With the increasing global demand for Indian fabrics such as Muga Silk, Kota Doria, and Manipuri cotton, readymade garment export is the ideal export business to consider today. The demand for readymade clothing made of these and other materials, which are known for their outstanding quality, is considerable on the international market.

Not only that, but given India’s talent in embroidery, design, and other areas, the garment exporting sector is also highly successful, raising the value of Indian readymade clothes around the world. As a result, it is fair to assume that a high-quality product has enormous export potential in the readymade garment business.

If you want to establish a readymade garment export business in India, you should know that it is a very safe business to start.

Before starting your garment exporting business in India, read this essential step-by-step guide to gain all of the important insights and knowledge regarding readymade garment export. This comprehensive guide will teach you how to complete all of the necessary stages.

How to Start a Readymade Garment Export Business in India: A Step-by-Step Guide:

As a first step, create an export strategyexport garments

The first stage in any successful business is planning. As a result, you’ll need to devise a foolproof export strategy that gives you with some key answers. This strategy will assist you in creating a roadmap and a clear understanding of your production goals.

An optimal export strategy is one that takes into account the company’s strengths and disadvantages. This step entails making critical decisions on the following aspects of the apparel export industry:

  • Product Type: Because the garment industry is a consumer-driven industry, the product chosen should meet market demand. As a result, a product that is popular in the global market should be selected. After you’ve decided on the product you want to make, you’ll need to set a pricing that makes your product viable for the international market and allows you to make a profit at the end of the day.
  • Choose your market: Indian clothing is in high demand all across the world. As a result, items must be designed to sell in high-demand markets.
  • Financial Analysis: Finance is an important aspect of any organisation. The funds required for the creation of readymade clothing must be examined both outside and internally, as well as sales forecasts and pre- and post-shipment financing possibilities.

Step 2: Establish a manufacturing facility.

This is a process you should be familiar with if you already possess a readymade clothes production business. It is, nonetheless, a critical step for newcomers who want to invest in the export

Setting up a production unit is a massive undertaking that entails multiple processes, which are outlined below:

  • A plan is designed to conceptualize your vision into reality before starting any manufacturing.
  • Following that, you may need to study garment production in depth.
  • You determine how much money you wish to put into your company.
  • You decide on the best location for your factory.
  • You select a product category and an ideal product, as well as the quantity you wish to make.
  • After you’ve decided on a product, you’ll need to figure out which machines and trained technicians you’ll need for your production.
  • Then numerous licenses that are essential to start up a factory are taken.
  • The plant is then set up and run.

As a result, once a production unit has been established and production has begun, you may concentrate completely on the export element of your firm.

Step 3: Obtain the various licences required for exporting.

Export and import are highly regulated activities that necessitate a few licences from the producer in accordance with foreign trade policy. These are some of the licences you’ll need when you’ve successfully set up a production unit for readymade garment export:

  • Incorporation of a Business

It is a legal document that serves as documentation of your company’s formation. It distinguishes between assets, investment income, and owners.

  • Certificate of Import-Export

The Director-General of Foreign Trade issues a certificate with a ten-digit lifetime validity code to persons who seek to start an import-export business.

  • RCMC

It’s also known as the Registration Cum Membership Certificate, and it’s issued by groups like the Export Promotion Council. For the textile and apparel choice, it is required.

  • Registration for the GST

Registration for the Goods and Services Tax (GST) is another name for it. This is given to a taxpayer who wishes to operate their business under the GST framework.

  • Registration of Small and Medium-Sized Businesses

It pertains to the registration of Micro, Small, and Medium Businesses. It is done in order to encourage these industries by providing them with particular advantages.

Step 4: Obtain Orders for Export

After you’ve taken care of the legalities, your main attention should be on obtaining export orders. These orders could be obtained through the use of a multipotential strategy, such as:

  • International clothing traders are being contacted through email.
  • Putting up adverts on social media and going online
  • Getting involved with export communities
  • Responding to internet inquiries and registering on online trade platforms
  • International commercial shows, seminars, and conferences

Step 5: Seek assistance from the AEPC.

Apparel Export Promotion Council is an acronym for Apparel Export Promotion Council. It acts as a middleman, assisting both exporters and those who have chosen India as a sourcing destination for their export business. It provides vital guidance to all entities involved in the export business. It focuses on a number of goals and memorandums of understanding (MoU).

Trendy clothing will never go out of style in today’s style-conscious world, where global trends reign supreme and fashionable clothing has become a need. As a result, the garment export business is the greatest export business in India to pursue. As a country with a lot of labor-intensive skills, the garment export sector is a good option to investigate.


Q. Is there another organisation in the country that promotes readymade export business prospects than AEPC?

Other export promotion organisations exist, although they focus on other sectors. The AEPC (Garment Export Promotion Council) is the only organisation that provides help to the apparel sector.

Q. Is it necessary to establish a new production unit in order to do export business?

No, you can start your export business with your current manufacturing unit. However, the things you make must match international standards and consumer needs around the world.

Q. What are the most important factors that influence export pricing?

The cost of manufacturing and distribution, international taxes, bilateral agreements, type of garment, nature of demand, ease of availability of fabrics and accessories, design, and other factors all influence export pricing in the apparel sector.

Q. How much does it cost to obtain all of the documentation required for the export business?

The average cost of procuring all of the documentation for this business ranges from roughly 12,000 INR to 37,000 INR, depending on the size of the company.

Q. What are some of the most important export markets?

Ans: The United States, parts of Asia, the Middle East, and the European Union are the key markets for garment exports.


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