India has introduced a new export-only FDI rule allowing Amazon, Flipkart and other eligible foreign-funded e-commerce platforms to purchase, own and export goods manufactured in India. While the change could simplify exports and reduce inventory risks for manufacturers, domestic marketplace rules remain unchanged. The policy aims to boost exports while preserving restrictions on inventory-led e-commerce within India's retail market

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…

The government’s decision to allow foreign-funded e-commerce companies to hold inventory for exports is expected to boost export volumes while reducing compliance burden for…