FDI In Inventory-Based Ecommerce For Exports: Commerce Ministry Seeks Comments

The Ministry of Commerce & Industry has circulated a consultation paper seeking views on allowing foreign direct investment (FDI) into the inventory-based e-commerce model, but limited to exports of goods produced in India. Currently, 100% FDI is permitted only in marketplace-based e-commerce, where platforms do not own inventory. The proposed change would allow foreign-invested entities to warehouse goods in India for sale to overseas buyers, boosting exports and supporting MSMEs engaged in manufacturing. This policy aims to strengthen cross-border e-commerce, improve ease of doing business, and enhance India’s export competitiveness. Regulatory focus areas include compliance with FDI rules under FEMA, ensuring segregation from domestic retail operations, GST applicability, and coordination with DGFT and customs frameworks.