Fin Min allows e-commerce inventory for exports

The finance ministry has updated Foreign Direct Investment (FDI) regulations to permit e-commerce firms to keep inventory exclusively for exporting goods manufactured in India. This change, announced in July and effective now, restricts the inventory-based model of e-commerce to exports only, not domestic sales. E-commerce entities can maintain inventory for export of Indian-origin goods, but must demonstrate compliance with foreign trade policy and FEMA regulations.

This policy shift aims to support Indian manufacturers in global markets while preserving protection for domestic e-commerce businesses and small retailers.