Archive · 4 Sep 2026
India Eases E-Commerce FDI Rules for Export-Only Inventory
India has changed a rule for online shopping companies with foreign investment.
These companies may now keep products in their own inventory if they plan to export them.
The products must be made or produced in India.
They cannot use this permission to sell their own inventory directly to shoppers in India.
The change was announced in July and officially notified on September 2.
Companies must follow India’s export and foreign-exchange rules.
They must also show that the products came from India and that export payments were properly received and reported.
The policy is intended to help Indian goods reach customers in other countries while keeping domestic retail restrictions in place.
India’s Finance Ministry has allowed foreign-invested e-commerce firms to maintain inventory exclusively for exports.
The goods must be manufactured or produced in India and exported under applicable trade and foreign-exchange rules.
Foreign investment in inventory-based e-commerce retailing for domestic consumption remains prohibited.
The Department of Economic Affairs added the provision to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, on September 2.
The amendment implements a decision announced in July and requires companies to document Indian origin, exports, and realization of export proceeds.
- Who
- The Department of Economic Affairs, the Finance Ministry, and foreign-invested e-commerce entities.
- What
- India has permitted e-commerce firms to use an inventory-based model exclusively to export Indian-manufactured or Indian-produced goods.
- When
- The notification was issued on September 2; the decision had been announced in July, and the report was published on September 4.
- Where
- India, with the eligible goods intended for export to other countries.
- Why
- To permit foreign-invested e-commerce platforms to support exports while retaining restrictions on inventory-based domestic B2C sales.
- Rule change
- Foreign-invested e-commerce entities may maintain and sell their own inventory exclusively for exports.
- Eligible goods
- Goods or products manufactured or produced in India.
- Domestic sales
- Foreign investment in inventory-based e-commerce retailing for domestic consumption remains prohibited.
- Legal instrument
- Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
- Notification date
- September 2; the provision implements a decision announced in July.
- Compliance requirements
- Exports must follow the Foreign Trade Policy 2023, its Handbook of Procedures, and the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015.
- Verification
- Companies must demonstrate Indian origin, export, and realization and reporting of export proceeds.
