India is examining a calibrated policy shift that could allow foreign direct investment (FDI) in inventory-based e-commerce, but strictly for export purposes.
According to a report by The Economic Times, the framework under consideration would permit overseas-funded entities to procure goods locally and ship them directly to international customers.
The proposal, currently under inter-ministerial review, aims to unlock global market access for Indian sellers while preserving protections for domestic retailers.
However, the model comes with tight guardrails to ensure compliance with existing norms that prohibit FDI in inventory-led ecommerce for domestic sales.
A key requirement being discussed is the physical segregation of export-bound goods from those meant for the Indian market.
Warehouses handling such operations may be located in proximity, but would need to maintain strict separation, supported by robust tracking systems to monitor inventory movement from procurement to final delivery.
The government is also exploring the creation of dedicated export-focused entities linked to FDI-backed marketplace platforms.
These entities would manage the entire fulfilment chain, from sourcing and logistics to regulatory compliance and last-mile delivery, based on confirmed overseas orders.
Officials believe the safeguards are critical to prevent diversion of export inventory into domestic channels, which would violate current policy.
Systems to ensure transparency and traceability are being built into the proposed model.
The move is part of a broader push to accelerate e-commerce exports without undermining small traders.
Consultations are ongoing with industry stakeholders on operational aspects such as GST refunds, duty remission schemes, and data usage norms.
Small and medium enterprises are expected to be among the biggest beneficiaries.
A large proportion of sellers in categories like fashion, jewellery, home décor, and wellness could gain improved access to global markets through streamlined export channels.
Please click here to add Swarajya as your preferred and trusted news source on Google
Also Read: India’s Russian Crude Buying Rebounds Threefold In March On Higher Prices And Eased Supply Curbs