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How To Export Knitted and Crocheted Fabrics From India


Introduction: Export Procedure of Knitted and Crocheted Fabrics

The textile industry has been booming since being introduced. India has been one of the top countries to export cloth and apparel all over the world. With a business of over 300 billion dollars, the industry is surely on top of things. One of the few textiles exported from India is Knit and Crocheted fabric. It can however be tricky to export your effort if one is unaware of the procedures to be followed. A successful shipment goes through due process. Several factors are to be taken into consideration before something is exported from one country to another. Hence with proper care and formalities, our fabrics can be sent with utmost safety and ease.

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Export Procedure

  • Obtain an IEC Code

An export license needs to be obtained from the Directorate General of Foreign Trade (DGFT). The body allows an Import Export Code (IEC) number. The number is extremely crucial for the traders as it shall help them clear customs and smoothly initiate transactions. The number is permanent and valid for a lifetime. There are certain products barred and may require additional permits or licenses. There are a few exemptions made as well which means those are not required to issue an IEC Code.

  • Register at the Indian Chamber of Commerce (ICC)

The ICC gives out a Certification of Origin that is necessary for further processes of export and it signifies that the exported goods have originated in India.

  • Finance for Export

After obtaining a license, the exporter may now approach a bank that shall help him proceed with the export process.

  • Obtain Relevant Documents

Keeping in accordance with the type of goods, documents shall be prepared. Following are a few essential documents an exporter shall have-

  1. Bill of Lading
  2. Bill of Export
  3. Commercial Invoice 
  4. Foreign Exchange Form
  • Ask for a Letter of Credit

A letter of credit contains the payment details of a shipment. The importer issues this letter from a bank and hence ensures an easy and timely transaction. 

  • Ensure Product Formalities
  1. The exported items shall be properly labelled and stamped as required by the importer. 
  2. Get insurance against credit risks. It can easily be done by Export Credit Guarantee Corporation.
  3. Apply for Marine Insurance
  4. Run an inspection and obtain a certificate from the Export Inspection Agency.
  • Foreign Exchange Rates and other Formalities

It is important to determine the updated exchange rate so the transaction of the shipment is smooth. It is easier to go ahead if the importer and exporter mutually fix the rates of the shipment. Before the shipment, the exporter needs to follow the provisions of the Foreign Exchange Regulation Act of India (FERA). 

  • Ensure RBI guidelines are followed

An exporter must ensure that the RBI guidelines are strictly followed. Foreign exchange on an export shall be followed as per the working of the RBI. 

Legal Authorities and Provisions

  • Directorate General of Foreign Trade (DGFT)

The DGFT is a certified organization affiliated with the Ministry of Commerce. It has been assigned to look after the exports of the country and promote the same. With its headquarters in Delhi, DGFT keeps a check and hands licenses to exporters for international business. The organization plays a crucial role in monitoring and maintaining standards as well as adhering to the WTO agreement for the development of international trade.

  • Foreign Trade (Development & Regulation) Act, 1992

This Act was introduced to facilitate imports into and increase exports from India, as well as for matters connected or incidental thereto, to grow and regulate international trade. The acts lay down provisions related to exports and how can be promoted. Its further monitor's exports from India along with listing out the provisions in favor of the import/export business.

  • Export-Import Policy of India (EXIM)

The EXIM is a policy formed under the umbrella of the FTA Act, of 1992. The authority under which the policy is governed is the DGFT. It contains rules, guidelines, and instructions of export goods in India. It was initially formed to look into the working of existing export policies in India but later focused on dealing with imports and exports from the nations, particularly export promotion measures, policies, and procedures linked to exports, the Indian EXIM Policy contains many policy-related decisions made by the government.

Market Demand

Data from the Ministry of Commerce and Industry show that between January and October of last year, India's knitted fabric export values decreased by 5.57%. During the specified period, the nation exported knitted fabrics worth US$ 348.71 million, down from US$ 369.27 million in the preceding period. However, the demand for these fabrics remained constant in the below countries-

Top Countries for Crocheted Fabric from India

S. No. Country Value (USD- Million)
1 USA 1,649.61
2 UAE 653.1
3 UK 328.08
4 Germany 290.67
5 France 166.01

Top Countries for Knitted Fabric from India

S. No. Country Value (USD- Million)
1 Sri Lanka 144
2 USA 90.24
3 Bangladesh 44.74
4 Ethiopia 19.34

Government Concessions on Exports

To help boost the export business in India, the government has observed and offered incentives against exports.

  • Refund:- An exporter in India is allowed to assert a refund on all State and Central excise duties and service tax levies paid on the materials used in the production of textiles and garments.
  • CDCE Scheme:- The Cumulative Duty Credit Entitlement Scheme has been initiated to allow exporters of textiles that ensure benefits against the inputs used for a transaction.
  • Export Promotion Capital Goods (EPCG):- Capital goods can be used in export sectors under this scheme without paying any customs duty. 
  • SEZ developers:- They are provided to promote their exports duty-free and several capital benefits. 


The business of Export is an essential activity that elevates trade all over the world. It encourages the interdependence of countries on each other and supports globalization. It is essential to note that proper procedure and adherence to laws can help prevent penalties and promote a better relationship between countries with each other. The export business significantly revolves around compliance and licensing of goods correctly.  In order to avoid unnecessary customs, it is essential to follow a flow set of rules that will enable better and quality transactions of shipments.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.


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A Post Graduate in the field of Corporate and Commercial Laws. I  have worked as a freelance content writer for several Legal topics for over 5 years. I aspire to learn and grow in this field along with being able to portray my Legal skill...

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