{"id":51578,"date":"2023-01-04T12:28:19","date_gmt":"2023-01-04T06:58:19","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=51578"},"modified":"2023-01-04T12:29:04","modified_gmt":"2023-01-04T06:59:04","slug":"garment-export-how-good-is-it-and-how-to-start","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/garment-export-how-good-is-it-and-how-to-start\/","title":{"rendered":"Garment Export: How Good Is It And How To Start?"},"content":{"rendered":"\n<p>India has remained the prominent garment exporter globally\nfor years. The favourable Government policies and incentives have boosted the\ncross-border trading of different types of garments.&nbsp; If you are looking to leap into this venture,\nyou must know what it takes to get it started. So, without any ado, let dive\nstraight into the legalities of this venture and other key factors.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/garment-export-how-good-is-it-and-how-to-start\/#Analysing_the_Potential_of_Garment_Export_in_India\" >Analysing the Potential of Garment Export in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/garment-export-how-good-is-it-and-how-to-start\/#Licenses_to_Start_Garment_Export_from_India\" >Licenses to Start Garment Export from India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/garment-export-how-good-is-it-and-how-to-start\/#Role_of_the_Apparel_Export_Promotion_Council_In_Garment_Export\" >Role of the Apparel Export Promotion Council In Garment\nExport<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/garment-export-how-good-is-it-and-how-to-start\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Analysing_the_Potential_of_Garment_Export_in_India\"><\/span><strong>Analysing the Potential of Garment Export in India <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>With the availability of ample raw materials and a\nmassive workforce, India is all set to rule the global garment export. India\nhas a vast variety of fabrics and fibers and its cotton textile value chain is\nquite formidable. Although India is yet to gain traction in global export as\nfar as man-made fiber is concerned, the GOI is making efforts in solidifying\nthe nation\u2019s presence via different schemes and initiatives. <\/p>\n\n\n\n<p>India\u2019s export is projected to register a CAGR of\n12-13% by 2027, surpassing the overall valuation of $30- thanks to\ngovernment-backed incentive schemes, a trade agreement with several nations,\nand an ever-dropping share of china in the RMG (Ready-Made Garment) market.\nThis will enable our nation to accomplish the gigantic textile export target of\nUS$ 100 billion by 2030.<\/p>\n\n\n\n<p>As per the CareEdge Ratings, the RMGs accounted for\na share of $850 billion in the calendar year 2021in the global textile. This\nfigure is expected to reach around 1.5 times by 2027. The global RMG market is\ncomposed of the EU, the UK, the US, Canada, Japan, and South Korea which are\ncollectively contributing around 60 percent of the overall global import.<\/p>\n\n\n\n<p>Nations like Bangladesh, Spain, Vietnam, China, and\nIndia rule the export regime, with China leading from the front with 33 percent\nof overall RMG exports -bolstered by amplified productivity, the economy of\nscale, and reduced transportation costs. Owing to these the Indian RMG garment\nexport is likely to surpass the whooping valuation US$ 30 billion mark by\nCY27.&nbsp; This will enable the nation to\ngrab a 4.6-4.9% share in the global export, which is currently poised at 3\npercent. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Licenses_to_Start_Garment_Export_from_India\"><\/span><strong>Licenses to Start Garment Export from India <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following is the list of licenses that are mandatory\nto set up a legally viable garment export business in India: <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>1.  Business Registration (mandatory for legalizing the business structure)<\/em><\/strong><\/h3>\n\n\n\n<p>Business registration is\nmandatory to legalize the existence of any commercial entity. Depending on the\nnature of the business and scale of operation, one can choose a viable business\nstructure from the available options such as OPC, Private Limited Company,\nPartnership Firm, LLP, etc to get things started. Each structure adheres to\ndistinct constitutional requirements and compliances. So make sure to pick the\none that suits your needs. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. <em>Shop And Establishment License (mandatory for exporters having godowns for stocking goods)<\/em><\/h3>\n\n\n\n<p>Shop and Establishment license is mandatory for\ncommercial establishments but not for production entities. The licensing\nprocess, paperwork, and norms for this license vary state-wise. It is granted\nby the state\u2019s labor department against the prescribed application and fee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. <em>Trade License (mandatory for exporters having godowns for stocking goods)<\/em><\/h3>\n\n\n\n<p>A <strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/trade-license\">trade license<\/a><\/strong> is\ngranted by the State\u2019s municipal corporation and it is not applicable in every\nstate. It is a mandatory legal permit that governs various aspects concerning\nworking labour and business premises. The trade license undermines the\nexploitation of the labourers at the workplace and prevents business owners to\nattempt illicit conduct in the context of operation or trade to keep everyone\u2019s\ninterest intact. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. <strong><em>Import-Export Code (IEC) &#8211; (It is a mandatory legal permit for exporting or importing goods) <\/em><\/strong><\/h3>\n\n\n\n<p>No cross-border trade can be possible without IEC\nregistration. Those who want to start garment export must have this permit in\nthe first place. It is a 10-digit unique code allocated by the authority to the\nimporter or exporter. The IEC helps customs recognize the exporter or importer\nduring shipment inspection. Also, it serves as a bridge when it comes to\nsecuring payment from the importer. Directorate General of Foreign Trade\naccords IEC via online application. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. <em>RCMC Certificate<\/em><\/h3>\n\n\n\n<p>It is mandatory for accessing export incentives,\nduty drawbacks, and duty scrip under <strong>Foreign Trade Policy<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.dgft.gov.in\/CP\/?opt=ft-policy\"><strong>[1]<\/strong><\/a><\/sup>. Directorate General of Foreign Trade accords this\ncertificate against online application available on their portal.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. <em>Fire NOC (stocking goods in godown for exports)<\/em><\/h3>\n\n\n\n<p>Establishments with a height of 15 m or high need to\nsecure Fire NOC in India. It is accorded by the state fire department against\nthe prescribed application and fee. Soon after submitting the application for\nFire NOC, the fire department official shall perform a premises inspection for\nthe availability of firefighting equipment and an emergency escape plan. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_the_Apparel_Export_Promotion_Council_In_Garment_Export\"><\/span><strong>Role of the Apparel Export Promotion Council In Garment\nExport<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>AEPC came into existence in 1978. It is an apex\ngovernment institution that strengthens apparel export by providing viable\ntrade opportunities to exporters. For all textile exporters, AEPC serves as an\nideal avenue for information advice, market intelligence, and technical\nguidance workforce. Registering with AEPC implies that exporters will have\naccess to real-time trade stats, market details, and international fairs to augment\ntheir reach. AEPC plays a pivotal role in exploring uncharted trade territories\nand prominent trade delegations to various nations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The garment export is a profitable venture since it adheres to tremendous growth potential. The export market size of India in the garment sector is expanding every passing year. Thus, it is an ideal time to leap into this venture and reap a healthy profit margin. However, it is vital to take exporting regulations and expenditures into account before commencing your business journey.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/how-to-set-up-garment-manufacturing-business-in-india\/\">How To Set Up Garment Manufacturing Business In India?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India has remained the prominent garment exporter globally for years. The favourable Government policies and incentives have boosted the cross-border trading of different types of garments.&nbsp; If you are looking to leap into this venture, you must know what it takes to get it started. So, without any ado, let dive straight into the legalities [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":51579,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[968],"tags":[2998],"acf":{"service_id":"250"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":4357,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51578"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=51578"}],"version-history":[{"count":3,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51578\/revisions"}],"predecessor-version":[{"id":51582,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51578\/revisions\/51582"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/51579"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=51578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=51578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=51578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}