Entering India in 2027?

Entering India in 2027? A Global Company’s Complete Guide to IOR, EOR, Warehousing, Customs & Distribution

India is one of the world's most important growth markets. But entering India successfully requires more than finding customers or shipping products.

For a global company, the real challenge is building an India operating model that can handle importing, customs, compliance, inventory, warehousing, distribution and customer delivery, without creating unnecessary infrastructure, cost or risk.

This guide explains the key logistics decisions global companies should consider when entering or expanding in India in 2026, including Importer of Record (IOR), Exporter of Record (EOR), customs, warehousing, transportation, inventory ownership and 3PL outsourcing.

Planning to enter India ? Zenxl can help you design and operate your India logistics model, from import and customs through warehousing and final distribution.

Why India Requires a Different Logistics Strategy

• The First Question: Who Will Import Your Products?
• IOR vs. EOR: What's the Difference?
• Choosing the Right India Market-Entry Model
• India Customs and Import Compliance
• Understanding Duties and Taxes
• What Happens After Customs Clearance?
• Choosing the Right Warehouse Strategy
• Transportation and Distribution Across India
• Why a 3PL Can Accelerate India Market Entry
• Common India Logistics Mistakes
• A Practical India Market-Entry Checklist
• How Zenxl Supports Global Companies in India
• Frequently Asked Questions
• Start Your India Logistics Strategy With Zenxl

1. Why India Requires a Different Logistics Strategy

Entering India is not simply a matter of shipping products from your existing supply chain into another country. Companies need to consider several interconnected decisions:

• Who will act as the importer?
• Who will own the inventory?
• Who will be responsible for customs compliance?
• Where will goods be cleared?
• Where will inventory be stored?
• How will goods move between locations?
• How will customer orders be fulfilled?
• Who will manage returns and reverse logistics?
• How will taxes, duties and other import costs be handled?
• What happens if volumes increase significantly?

Getting one piece wrong can affect the entire supply chain.

The good news is that companies do not necessarily need to build their own warehouse network, logistics organization or infrastructure before entering India. A well-designed 3PL and India market-entry model can allow a company to establish operations faster, test the market and scale infrastructure as demand develops. India's logistics and industrial market is also becoming increasingly sophisticated. In H1 2026, third-party logistics providers accounted for 31% of industrial and logistics absorption according to CBRE, while engineering and manufacturing represented another 26%.

The implication is:

Global companies increasingly have the option to outsource parts (or all) of their India supply-chain execution to specialist logistics partners.

2. The First Question: Who Will Import Your Products?

One of the first decisions a global company must address is:

Who is the Importer of Record in India?

The Importer of Record is generally the party responsible for the import transaction and associated customs obligations.

Depending on the company's structure, the importer could potentially be:

• The company's Indian subsidiary
• An Indian distributor
• An authorized business partner
• A specialized IOR service provider
• Another appropriately structured entity

The right answer depends on the company's commercial model, ownership structure, product category, regulatory requirements and intended customer relationship.

This is why IOR should not be treated simply as a customs-clearance service.

IOR is part of the overall India operating model. Before selecting an IOR structure, companies should understand:

• Who owns the goods?
• Who sells the goods?
• Who pays the supplier?
• Who receives payment from the Indian customer?
• Who bears inventory risk?
• Who is responsible for customs compliance?
• Where will the goods be stored?
• Who will deliver the goods to customers?

These decisions should be designed together.

3. IOR vs. EOR: What's the Difference?

The terminology can be confusing because different companies use IOR/EOR terminology differently depending on the transaction and service structure.

Importer of Record (IOR)

An IOR structure is generally associated with the party responsible for importing goods into a country and fulfilling the applicable import and customs obligations. For a global company entering India, an IOR solution may allow the company to import products without immediately establishing the entire operational infrastructure required to conduct imports itself.

Exporter of Record (EOR)

An EOR is generally the party responsible for the export transaction and applicable export requirements. EOR becomes particularly relevant when goods are being exported from India and the commercial structure requires another party to manage the export process. The important point is that IOR/EOR should be designed around the actual commercial transaction, not treated as a standalone logistics service.

A good India logistics partner should first understand the transaction and then recommend the appropriate operating model.

4. Choosing the Right India Market-Entry Model

There is no single model that works for every company. A global company may consider several approaches.

Model 1: Global Company → Indian Subsidiary → Customer

The company establishes an Indian legal entity that imports, owns inventory, sells to customers and manages operations.

Advantages

• Maximum control
• Direct customer relationship
• Long-term operating flexibility
• Ability to build a permanent India organization
• Challenges
• Entity setup
• Compliance responsibilities
• Working capital
• Hiring
• Warehousing
• Logistics management
• Higher initial infrastructure requirements

This model can make sense when India is expected to become a significant long-term market.

Model 2: Global Company → IOR/3PL Partner → Customer

A specialized partner manages the import and logistics execution while the global company focuses on sales and customers.

The partner may support:

Import → Customs → Warehouse → Inventory → Order Fulfillment → Transportation → Delivery

This can be particularly attractive when a company wants to enter India quickly without immediately building a full logistics organization.

Model 3: Global Company → Distributor → Customer

The distributor imports and owns the goods and manages downstream sales.

This can simplify the operating model but gives the global company less control over inventory, customer relationships and the overall supply chain.

Model 4: Partner-Owned Inventory / Commercial Resale Model

Under some commercial structures, a local partner may import and purchase goods, then resell them to Indian customers.

This can simplify certain aspects of the transaction but changes:

• Ownership
• Commercial risk
• Working capital
• Pricing
• Revenue recognition
• Customer relationship
• Tax and compliance considerations
• The commercial and legal structure should be reviewed before implementation.

5. India Customs and Import Compliance

Customs should be treated as a strategic part of the supply chain, not something addressed only when a shipment arrives at the port. India has extensive digital customs infrastructure. The Indian Customs EDI System (ICES) processes customs transactions electronically, while ICEGATE provides the interface connecting customs with trade, transport, banking and regulatory stakeholders. Faceless assessment is also designed to reduce physical interaction and standardize assessment.

However, digitization does not eliminate the need for accurate information.

Companies should establish a clear process for:

• Product classification
• HS code determination
• Importer details
• Commercial invoices
• Packing lists
• Country of origin
• Product descriptions
• Valuation
• Licenses and approvals, where applicable
• Product-specific regulatory requirements
• Customs documentation
• Duty and tax assessment
• Record retention
• Post-entry reconciliation

One of the most common mistakes

Companies often assume that the logistics provider can solve customs issues after the shipment arrives. That is backwards. The best time to address customs risk is before the first shipment.

Product classification, documentation and regulatory requirements should be reviewed as part of the India market-entry planning process.

6. Understanding Duties and Taxes

Import costs in India can include multiple components depending on the product, classification, applicable notifications, origin and other factors.

Depending on the transaction, companies may need to consider items such as:

• Basic Customs Duty (BCD)
• Social Welfare Surcharge (SWS)
• Integrated Goods and Services Tax (IGST)
• Applicable additional duties or levies
• Product-specific regulatory charges or requirements
• The actual amount depends on the applicable tariff classification, valuation, origin, exemptions and current regulations.
• There is no single “India import tax rate.”
• This is particularly important when preparing landed-cost calculations.

A company should understand the approximate landed cost before committing to an India pricing model.

• A basic landed-cost framework
• Product Cost
• Freight & Insurance
• Customs Duty / Applicable Import Charges
• Taxes
• Customs Clearance
• Port / Terminal / Handling Charges
• Warehousing
• Domestic Transportation
• Landed Cost

A reliable landed-cost model allows the commercial team to establish realistic India pricing and margins before launching.

Import duties, taxes and regulatory requirements vary by product and transaction. Companies should obtain product-specific customs and tax advice before implementation.

7. What Happens After Customs Clearance?

Customs clearance is only the beginning. Once goods are released, the company needs an operating model for the inventory.

That may include:

• Receiving
• Physical receipt
• Quantity verification
• SKU identification
• Condition checks
• Serial-number capture where required
• Storage
• Put-away
• Location management
• Inventory tracking
• Cycle counting
• Stock reconciliation
• Order fulfillment
• Order receipt
• Picking
• Packing
• Quality checks
• Documentation
• Dispatch
• Transportation
• Regional distribution
• Customer delivery
• Shipment tracking
• Proof of delivery
• Exception management
• Reverse logistics
• Returns
• Inspection
• Repair
• Replacement
• Repackaging
• Re-export or disposal where appropriate

This is where the value of a 3PL partner becomes significant.

Instead of managing separate vendors for customs, warehouse, transportation and fulfillment, a company can create a connected operating model.

8. Choosing the Right Warehouse Strategy

A warehouse should not simply be selected based on the lowest price per square foot.

The right location depends on:

• Customer concentration
• Port and airport access
• Manufacturing locations
• Delivery requirements
• Transportation costs
• Inventory levels
• SKU complexity
• Service-level requirements
• Future growth
• Labor availability
• Technology requirements

India's warehousing market continues to expand, with strong demand from 3PL and manufacturing occupiers. In H1 2026, warehouse leasing accounted for 67% of logistics and industrial leasing activity across the markets tracked by Cushman & Wakefield.

9. Transportation and Distribution Across India

India's geographic scale makes domestic transportation strategy critical.

Companies should evaluate:

• Air vs. road vs. other modes
• Full truckload vs. part-load
• Express vs. standard delivery
• Regional distribution
• Customer delivery requirements
• Shipment visibility
• Freight cost
• Delivery performance
• Reverse logistics

The objective should not simply be:

“How do we move this shipment?”

It should be:

“What transportation model delivers the required customer experience at the required cost?”

10. Why a 3PL Can Accelerate India Market Entry :

For many global companies, building an India logistics organization from scratch is unnecessary.

A 3PL can potentially provide access to:

• Warehousing
• Transportation
• Inventory management
• Order fulfillment
• Customs coordination
• Import/export support
• Reverse logistics
• Technology
• Operational personnel
• Multi-city infrastructure

This allows the global company to focus on:

Customers + Sales + Products + Market Development

while the logistics partner focuses on:

Import + Compliance + Inventory + Warehousing + Distribution

11. Common India Logistics Mistakes Global Companies Should Avoid

Mistake #1: Treating India as simply another destination

India requires local operating knowledge. The supply chain should be designed specifically for the Indian market.

Mistake #2: Waiting until the first shipment to address compliance, Customs and regulatory requirements should be evaluated before shipping.

Mistake #3: Selecting a warehouse based only on price

A cheaper warehouse can create higher transportation costs and poorer customer service.

Mistake #4: Building too much infrastructure too early, A new market does not necessarily justify a large fixed-cost infrastructure investment.

An asset-light 3PL model can provide flexibility.

Mistake #5: Using multiple disconnected vendors

Customs, warehousing and transportation work best when the handoffs are clearly designed.

Mistake #6: Ignoring scalability

The logistics model that works for 10 shipments per month may fail at 500.

The initial architecture should allow for growth.

Mistake #7: Not understanding inventory ownership

Companies should clearly define who owns the goods, who carries inventory risk and who is responsible for the commercial transaction.

12. A Practical India Market-Entry Checklist

Before the first shipment, a global company should be able to answer the following:

Corporate & Commercial

• What is the India business model?
• Will the company establish an Indian entity?
• Who will sell to the customer?
• Who will own the inventory?
• Import & Compliance
• Who will be the Importer of Record?
• Are products correctly classified?
• What customs duties and taxes may apply?
• Are any licenses, approvals or certifications required?
• Are import documents ready?
• Warehousing
• Where will inventory be stored?
• What warehouse capacity is required?
• What are the security and handling requirements?
• Is inventory technology integrated?
• Distribution
• What are the target customer locations?
• What delivery service levels are required?
• Which transportation modes will be used?
• How will returns be handled?
• Financial
• What is the landed cost?
• What is the logistics cost per unit/order?
• What working capital is required?
• What happens to the cost structure os volumes increase?
• Scalability
• Can the model support 2× or 5× volume?
• Can additional warehouse locations be added?
• Can the logistics partner support new cities?
• Can automation be introduced as volume increases?

13. How Zenxl Supports Global Companies in India

Zenxl helps globais companies build and operate their India supply chain through an integrated logistics model.

Our approach can combine:

IOR / EOR: Support for companies that need an India import/export operating model without immediately building the entire local logistics infrastructure themselves.

Customs & Import Coordination: Support for documentation, customs processes and shipment coordination.

Warehousing: Flexible warehouse solutions designed around inventory, customer locations and growth requirements.

Transportation: Domestic transportation and distribution designed around service levels, cost and geographic requirements.

Fulfillment: Inventory management, order processing, pick/pack and customer delivery support.

Reverse Logistics: Returns, replacements, repairs and other reverse-flow requirements.

Warehouse Automation: Technology and automation solutions designed to improve productivity, accuracy and scalability.

3PL Management: An integrated operating model that brings multiple logistics activities together under one coordinated partner.

14. Frequently Asked Questions

What is an IOR in India?

An Importer of Record is generally the party responsible for the import transaction and applicable customs obligations. The appropriate structure depends on the company's legal, commercial and regulatory circumstances.

Does a company need an Indian entity to import products?

Not necessarily in every circumstance. The appropriate import structure depends on the product, transaction, regulatory requirements and commercial model. Companies should evaluate the structure before shipping.

What is the difference between IOR and EOR?

IOR generally relates to importing goods into a country, while EOR generally relates to exporting goods from a country. The specific responsibilities depend on the transaction and applicable regulations.

Can a 3PL handle warehousing and transportation in India?

Yes. Many 3PL models combine warehousing, inventory management, fulfillment and transportation, allowing companies to outsource significant portions of their supply-chain operations.

How should a company choose an India warehouse?

The decision should consider customer locations, ports and airports, transportation costs, inventory requirements, service levels, labor, technology, security and future scalability, not just warehouse rent.

How long does India customs clearance take?

There is no universal clearance time. It depends on factors including shipment type, documentation, classification, regulatory requirements, customs assessment and whether additional examination or information is required.

What are the major import costs in India?

Potential costs can include customs duties, applicable taxes, freight, insurance, customs clearance, port and handling charges, warehousing and domestic transportation. Actual costs depend on the product and transaction.

Can Zenxl support a company entering India for the first time?

Yes. Zenxl can work with global companies to design an India logistics model covering areas such as IOR/EOR, customs coordination, warehousing, transportation, fulfillment and distribution.

15. Start Your India Logistics Strategy with ZeNXL

Entering India does not require a global company to build an entire logistics organization on day one. The better approach is to build the right operating model first, and then scale the infrastructure as the business grows.

That may mean starting with:

IOR → Customs → Warehouse → Fulfillment → Transportation

and progressively expanding into:

Multi-city Distribution → Automation → Advanced Supply-Chain Management

The objective is simple:

• Make entering India easier.
• Make operating in India more efficient.
• Make scaling in India more predictable.

About ZeNXL :

ZeNXL is an India-focused logistics and supply-chain partner supporting global companies with IOR/EOR, warehousing, transportation, fulfillment and integrated 3PL solutions. With experience supporting global businesses across India, ZeNXL helps companies move from market-entry planning to operational execution, and scale as their India business grows.

ZeNXL: Your Supply Chain Partner in India.