Archive · 18 Sep 2025
India to Pilot E-commerce Export Model with UK
India is testing a new plan to help online shopping businesses that sell things to other countries.
The government wants these businesses to be able to buy products from Indian sellers, keep them in a warehouse, and then sell them to people in places like the UK.
Right now, these businesses can only connect buyers and sellers, but they can't buy and sell the products themselves.
This change should make it easier for Indian brands to sell overseas and bring more money into India.
Gujarat will be the first place to try out this new plan.
India plans a pilot project for foreign-funded e-commerce firms to use an inventory-based export model.
The UK will be the initial partner for the pilot program under the existing FTA.
The aim is to boost foreign direct investment (FDI) and diversify exports.
Gujarat is the chosen state for the pilot project's local base.
The model will allow firms to own and sell directly to consumers in the UK.
- Who
- Indian government, e-commerce companies, small businesses.
- What
- India is planning a pilot project to allow foreign-funded e-commerce companies to use an inventory-based model for exports to the UK.
- When
- Pilot project is planned to begin soon.
- Where
- India and the United Kingdom.
- Why
- To boost exports, attract FDI, and provide easier market access for small businesses.
- Pilot Program Goal
- Allow foreign-funded e-commerce firms to buy, stock, and export goods.
- Initial Partner
- United Kingdom (UK) under the FTA.
- Key Benefit
- Potential to increase FDI and diversify exports.
- Location of Pilot
- Gujarat
- Current Rules
- Foreign-funded e-commerce companies are currently restricted to marketplace model.
- FTA Partners
- Model may expand to 14 other FTA partners after successful pilot.
- E-commerce Market
- India's market expected to reach $325 billion by 2030.
