Overview
- The DGFT proposal would allow platform-linked export entities to buy from Indian sellers and sell to overseas customers, with changes to DPIIT’s FDI rules and cabinet approval still required.
- Safeguards in the draft include segregated export inventory, full traceability, escrow-based settlements, strict reporting, periodic audits, and stiff penalties including possible criminal action for breaches.
- The Commerce Ministry has discussed the model with Amazon, Flipkart, FedEx, DHL, industry bodies, and the RBI’s foreign exchange department, with an initial rollout limited to a few entities.
- The plan aims to ease cross-border trade for MSMEs by shifting documentation, logistics and returns processing to export facilitators, with export incentive sharing mechanisms under consideration.
- Retail associations representing small brick-and-mortar sellers oppose the change, citing diversion risks, as the proposal surfaces during sensitive U.S.–India trade discussions and ongoing scrutiny of platform practices.