Reviewed by Sweta | Updated on Sep 25, 2022



Exports refer to the sale of goods or services originating or produced in one country to customers in another country. Exports are part of economic activities carried on between countries. Exports, along with imports, constitute business activities carried on under international trade and commerce.

Understanding Exports

Exports offer new market opportunities for manufacturers, producers, or sellers of the exporting country. Exports also offer the opportunity of expanding business activities, and increased economic activities spread across two or more countries. Exports offer a platform to a business entity for showcasing and establishing themselves as a global player.

The exports from a country have to follow the export policy and applicable laws and regulations. For example, exports from India are made in line with the EXIM policy, which is a five-year policy. The present EXIM policy is 2015-20.

The exporter should also abide by the customs laws of the country and other export-oriented schemes of the government. There may be restrictions on the export of certain goods, while certain other exports may be incentivised by the government.

In India, exporters should also comply with the regulations made by the Reserve Bank of India (RBI) for the realisation of export proceeds and reporting of the same. The RBI also prescribes that the export proceeds should be routed through authorised banks.

Certain countries have export policies favouring the development of the nation into a manufacturing and exporting hub. For example, India and China have attracted huge foreign investment for developing themselves into manufacturing and exporting hub. An example is the manufacture and sale of Apple’s iPhone in China and recently from India.

The export activity carries higher business risks in comparison to local sales. The risks associated with high credit period, quality of goods and realisation of export proceeds are high. However, exports also have the benefit of diversifying business by exploring new markets.


Exports facilitate and boost international relations between countries. They provide access to new technologies and learnings from diverse markets. With increased sales, the cost of production can be lowered, and risks can be diversified across countries. Exporters also benefit from new market practices and foreign competition, thus making them more quality compliant and competitive.

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