๐ Introduction: Why Exporting Chemicals from India Is a Smart Move
India is one of the largest producers and exporters of chemicals in the world, contributing over 11% to global chemical production. With a rich supply of raw materials, skilled manpower, and growing demand from countries like USA, UAE, Bangladesh, Africa, and Europe, starting a chemical export business can be highly profitable.
Whether you’re manufacturing detergents, personal care chemicals, lubricants, industrial cleaners, or agrochemicalsโexports can multiply your profit margins by 2x to 5x compared to domestic sales.
This guide will walk you through:
- Legal requirements
- Registration and licenses
- Step-by-step export process
- Popular chemical products to export
- Smart tips to grow globally
๐ฆ What Chemicals Can You Export from India?
You can export many formulated, technical, or specialty chemicals, such as:
Chemical Category | Examples |
---|---|
Household Chemicals | Detergents, toilet cleaners, floor disinfectants |
Cosmetic/Personal Care | Shampoos, hair oils, lotions, hand sanitizers |
Industrial Chemicals | Lubricants, engine coolants, degreasers, solvents |
Agrochemicals | Pesticides, herbicides, plant growth promoters |
Paints & Coatings | Emulsions, thinners, primers |
Specialty Chemicals | Fragrance chemicals, food preservatives, adhesives |
โ ๏ธ Note: Some chemicals (e.g. acids, pesticides, explosives, industrial alcohol) require special export permissions under Indian law.
๐งพ Legal Requirements for Exporting Chemicals from India
To legally export chemicals from India, follow this checklist:
1. Register Your Business
Start as:
- Sole Proprietor
- Partnership
- LLP or Pvt. Ltd. Company
Apply for:
- GST registration
- MSME (Udyam) registration for subsidies
2. Get Import Export Code (IEC)
Issued by DGFT (Directorate General of Foreign Trade), IEC is mandatory for all exports.
- Apply at: https://www.dgft.gov.in
- Cost: โน500 (lifetime valid)
- Time: 1โ3 working days
3. Check for Restricted Chemicals
Some chemicals are listed under:
- SCOMET List (Special Chemicals, Organisms, Materials, Equipment and Technologies)
- Hazardous Waste Rules
- Insecticides Act, 1968
If your product is in these categories, you must:
- Apply for export authorization from DGFT or related ministry
- Follow hazard labeling, safety data sheet (SDS), and packaging norms
๐ Check export restrictions for chemicals here: DGFT SCOMET Guidelines
4. Product Safety Compliance
For most chemicals, you need:
- Material Safety Data Sheet (MSDS/SDS)
- HS Code (Harmonized System Code)
- Packaging with UN numbers, hazard signs, and batch details
5. REACH Compliance (If Exporting to Europe)
REACH is a European Union regulation for chemicals.
- Required if you’re exporting more than 1 ton/year to EU
- Need to register substance with ECHA
- You may need an Only Representative (OR) based in EU
๐ค Step-by-Step: How to Export Chemicals from India
โ Step 1: Finalize Your Product & Formula
Decide whether you’re exporting:
- Finished formulations (e.g. liquid detergent, hair oil)
- Raw chemicals (e.g. solvents, acids)
Get your productโs:
- HS Code
- SDS/MSDS
- Test reports and label design
โ Step 2: Get a Buyer or Export Order
Options:
- Trade portals: IndiaMART, Alibaba, TradeIndia
- Online ads: Google, Facebook
- Government help: EPCs (Export Promotion Councils)
Always get a purchase order and verify buyerโs identity before shipment.
โ Step 3: Choose the Right Packaging
- Use HDPE, LDPE, glass, or metal containers for chemicals
- Ensure leak-proof and international compliance
- Label: product name, HS code, batch no, warning symbols, expiry
Bonus Tip: Use UN-certified packaging for dangerous goods
โ Step 4: Hire CHA & Freight Forwarder
A Customs House Agent (CHA) helps in documentation, clearance, and port handling. Freight forwarders assist in shipping via air, sea, or road.
Choose from:
- DHL, FedEx (for small samples)
- Maersk, MSC (for sea shipping)
- Blue Dart, Gati (for domestic logistics)
โ Step 5: Prepare Export Documents
Document | Purpose |
---|---|
Invoice | Commercial value |
Packing List | Product & quantity info |
Bill of Lading/Airway Bill | Proof of shipment |
SDS/MSDS | Chemical safety |
COO (Certificate of Origin) | Issued by Chamber of Commerce |
LC or Bank Guarantee | (if applicable for payment terms) |
๐ง Keep digital + hard copies ready for customs clearance.
โ Step 6: File Shipping Bill with ICEGATE
Register on https://icegate.gov.in and file a Shipping Bill for customs clearance.
Your CHA will help with:
- Product inspection
- Clearance from Customs, DGFT, and Excise
โ Step 7: Shipment & Payment
- Send goods to port via logistics
- Get Bill of Lading after shipment
- Buyer pays as per terms: advance, LC, or TT
Use RBI-compliant payment gateways or foreign inward remittance via bank.
๐ Top Countries Importing Chemicals from India
Country | Popular Imports |
---|---|
USA | Pharma chemicals, cosmetics, cleaners |
UAE | Detergents, lubricants, adhesives |
Bangladesh | Pesticides, FMCG chemicals |
UK | Organic cosmetics, herbal oils |
Kenya/Nigeria | Cleaners, toilet products |
๐ฐ Profit Potential in Chemical Exports
Letโs look at sample numbers:
Product | Local Price (INR/Ltr) | Export Price (USD/Ltr) | Profit Margin |
---|---|---|---|
Liquid Detergent | โน20 | $1.8โ$2.5 | 300โ500% |
Engine Coolant | โน25 | $2.0โ$3.0 | 400% |
Herbal Shampoo | โน30 | $3.0โ$4.5 | 500โ700% |
With proper branding and B2B tie-ups, margins go even higher.
๐ผ Export Schemes & Subsidies from Indian Govt
- RoDTEP Scheme: Refund of duties on export products
- Interest Equalization Scheme: Lower bank interest on loans
- Export Credit Guarantee Corporation (ECGC): Protects exporters from payment risks
- MEIS (earlier): Replaced by RoDTEP but was useful for chemical exporters
๐ Smart Tips to Grow Your Chemical Export Business
- Focus on 1โ2 countries first
Build trust with importers in UAE, Africa, or Bangladesh - Offer samples first
Sending 100โ200ml samples builds trust and gets quicker orders - Build a Website + Digital Brochure
Include SDS, specs, pricing, factory photos - Attend Export Fairs & Exhibitions
Join expos like ChemExpo India, India Chem, Dubai Expo - Register with EPCs
Like CHEMEXCIL (Basic Chemicals Export Council of India) - Use WhatsApp Business + Email Campaigns
To stay in touch with buyers
๐ Final Thoughts
Exporting chemicals from India is a booming opportunity for small and mid-sized manufacturers. With rising demand for Indian-made formulations and products globally, you can create a highly profitable export business with proper licensing, documentation, and strategy.
Take one product, test it in 1 country, follow all legal steps, and keep scaling. The margins, demand, and repeat orders will make your export business thrive.