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Centre opens inventory-based e-commerce to FDI for exports

hellohimachalse@gmail.com 24 Jul 2026 24 Jul 2026

New Delhi: The government on Thursday permitted FDI in an inventory-based e-commerce model “exclusively” for export purposes, a move which will help increase India’s outbound shipments without impacting the businesses of small retailers.

These firms will have to export goods that are manufactured or produced in India. Also, FDI in inventory-based e-commerce retailing has not been permitted. “In order to facilitate greater exports through easier and increased access of global markets by Indian sellers, the extant FDI Policy has been reviewed and it is decided that the restrictions on inventory-based model of e-commerce shall not apply in case of exports of domestically manufactured and/or produced goods/products,” the Department for Promotion of Industry and Internal Trade (DPIIT) said in a Press Note. This means that e-commerce firms with foreign stake can now maintain inventory only for export purposes. Earlier, the policy did not explicitly specify this. DPIIT, an arm of the commerce and industry ministry, deals with foreign direct investment (FDI) related issues. It releases policy changes through Press Notes (PNs). As per the current FDI policy, overseas investments are permitted in business-to- business e-commerce and marketplace models. However, FDI is not allowed in business-to-consumer e-commerce and inventory-based e-commerce models where inventory of goods and services is owned by an online retailer and is sold to consumers directly. DPIIT has inserted a clause in the policy, which states: “An e-commerce entity is permitted to engage in an inventory-based model of e-commerce exclusively for the export of goods/products manufactured and/or produced in India as per the applicable provisions of the Foreign Trade Policy 2023…and the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015”. It added that the restrictions on B2C and the inventory-based model of e-commerce will not apply to the export of goods/products through e-commerce.

The decision will come into effect from the date of FEMA (Foreign Exchange Management Act) notification, it said. The proposal was initially mooted by the Directorate General of Foreign Trade (DGFT) to boost India’s exports through e-commerce. E-commerce stakeholders, too, have demanded the same. The decision is important as the government is looking at ways to boost exports through the e-commerce medium.

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