Overview
- On November 2, the Commerce and Industry Ministry circulated a note to central departments seeking comments on permitting FDI in inventory-based e-commerce exclusively for exports.
- The plan would allow foreign-owned e-commerce entities to hold stock only to ship goods made in India overseas, keeping domestic retail protections intact.
- Current rules permit 100% FDI under the automatic route for marketplace platforms but prohibit foreign investment in inventory-led models for domestic sales.
- Commerce Minister Piyush Goyal has signaled no objection to firms holding inventory for exports, and officials indicate the change could be effected through a policy clarification.
- The move aligns with steps to scale e-commerce exports, including designated export hubs near major airports and extending RoDTEP and duty drawback, with exports now in the low billions versus ambitions of roughly $200–$300 billion by 2030.