By Naraway
In this article
India bought US$774.98 billion of goods from the rest of the world in FY 2025-26, US$54 billion more than a year earlier. Every container of it cleared customs under an Indian name.
That name, the importer of record, is the first thing an overseas seller needs and the one most often left until the goods are already at sea.
Sources: Commerce Ministry via Rural Voice; CMIE via Bank of Baroda; UKFT; NITI Aayog via ThePrint.
Who Sells to India
Six countries supplied 46% of India's merchandise imports in FY26: China, the UAE, Russia, the US, Saudi Arabia and Iraq. For most other exporters, India is still a market where they hold a small share of a very large total.
The Importer of Record
Indian customs needs a party in India to file the bill of entry, pay the duty and answer for the goods. That party, the importer of record, generally holds an Importer Exporter Code from the Directorate General of Foreign Trade, a PAN and a GST registration. A foreign company without an Indian entity has none of these.
The buyer imports
The Indian customer is the importer of record. Simple, but the seller gives up control of pricing, timing and the customer relationship at the border.
A distributor imports
A local partner holds stock and sells on. Common for consumer goods; the margin and the brand's presence sit with the distributor.
An importer-of-record service
A third party imports on the seller's behalf for a fee. Useful for equipment and pilots; not designed for scale.
The seller's own Indian entity
A subsidiary holds the IEC, pays the duty and claims GST credit. More set-up, full control.
What the Trade Deals Change
The India-UK agreement came into force on 15 July 2026; the India-UAE CEPA has been in force since 2022, and the India-EU agreement is due to be signed in December 2026. Each lowers duties, sometimes sharply: Scotch whisky goes from 150% to 40% under the UK deal. But the lower rate applies only when the goods meet the agreement's rules of origin and the paperwork proves it. "India-UAE CEPA rules of origin" is one of the most searched trade questions for a reason.
Where Shipments Stall
The importer is the first gate. The second is product certification. India had 790 Quality Control Orders by October 2025, each requiring BIS certification for a product before it can be imported or sold, and medical devices need a separate licence from CDSCO. A shipment without the right certificate does not clear, whoever the importer is.
Why Exporters Keep Coming
India's imports grew by US$54 billion in a single year, and the IMF expects the economy to grow 7% in 2026. New trade agreements with the UK, the UAE and soon the EU make that demand cheaper to reach for exporters in those countries than for their competitors.
Which importing route fits depends on the product, the volume, the margin and how much control the brand wants at the border. So does whether the trade agreement's lower duty is actually available for a given product. Those answers are worth having before the first shipment is booked.
Part of Naraway's research series India Market Entry in 2026.
In short
India imported US$774.98 billion of merchandise in FY 2025-26, with China (17.0%), the UAE (8.2%) and the US (6.8%) the largest sources. Every import needs an importer of record in India: the party named on the customs bill of entry, which generally must hold an Importer Exporter Code (IEC) from DGFT, plus PAN and GST registration. A foreign seller without an Indian entity therefore ships through a buyer, a distributor or an importer-of-record service. Trade agreements change the duty: the India-UK agreement in force since 15 July 2026 and the India-UAE CEPA cut tariffs for goods that meet their rules of origin.
- FY26 merchandise imports: US$774.98 billion, up from US$721.20 billion.
- Top sources: China 17.0%, UAE 8.2%, US 6.8% of imports.
- Every import needs an Indian importer of record, generally with an IEC, PAN and GSTIN.
- Trade deals cut duties only for goods that meet their rules of origin.
- Many products also need BIS certification before they can clear customs.
Sources
- India exports fall 7.4% in March, FY26 shipments rise 4.2% as trade deficit widens, Rural Voice
- BOB Economics: India's trade, April 2026, Bank of Baroda
- Importer-Exporter Code (IEC), Lawrbit
- UK-India FTA to enter into force on 15 July 2026, UKFT
- India's FTA tracker 2026, India Briefing
Frequently Asked Questions
Who can be the importer of record in India?
The party named on the customs bill of entry, which generally needs an Importer Exporter Code (IEC) from DGFT, a PAN and GST registration. Without an Indian entity, a foreign seller uses its buyer, a distributor or an importer-of-record service.
How much does India import?
US$774.98 billion of merchandise in FY 2025-26, up from US$721.20 billion in FY25.
Which countries export most to India?
In FY26, China supplied 17.0% of India's imports, the UAE 8.2% and the US 6.8%, according to CMIE data compiled by Bank of Baroda.
Does the India-UK trade agreement reduce import duties?
Yes, for goods that meet its rules of origin. The agreement entered into force on 15 July 2026; Scotch whisky tariffs, for example, fall from 150% to 40%.
Do imported products need certification in India?
Many do. Products under BIS Quality Control Orders need BIS certification before import, and medical devices need a CDSCO import licence.
