India's FDI rules prohibit ecommerce companies from holding inventory, requiring them to operate on a marketplace model to prevent large inflows of foreign capital from distorting competition for small sellers and traders. The Department for Promotion of Industry and Internal Trade (DPIIT) said on Thursday that restrictions on foreign investment in inventory-based ecommerce will "not apply in case of exports of domestically manufactured and/or produced goods/products." The policy, executives said, creates an additional channel for Indian sellers to access overseas markets.

The government has permitted foreign direct investment in an inventory-based e-commerce model. This new policy exclusively applies to the export of Indian manufactured goods. It…

The government has amended the FDI policy to allow inventory-based e-commerce for exports of India-made goods, aiming to boost global market access for sellers.

India relaxes FDI rules for e-commerce, allowing inventory-based models for exporting locally produced goods to boost exports.

The restrictions on foreign investment in inventory-based ecommerce will “not apply in case of exports of domestically manufactured and/or produced goods/products,” the Department…

New Delhi: Govt has amended the foreign direct investment rules to lift restrictions on inventory-based model of e-commerce in case of exports of domestically-manufactured goods.