India Allows Foreign Direct Investment in Inventory‑Based E‑commerce for Exports

On 23 July 2026 the Department for Promotion of Industry and Internal Trade (DPIIT) announced that foreign direct investment (FDI) is permitted in an inventory‑based e‑commerce model when the goods are exported. The change excludes the existing restrictions on such models for domestic sales, aligning the policy with the Foreign Trade Policy 2023 and FEMA regulations.

The amendment aims to boost India’s outbound shipments without harming small domestic retailers. It maintains the current allowance of 100 % FDI in B2B e‑commerce and marketplace models, while B2C and inventory‑based e‑commerce for domestic consumption remain barred. The move is expected to give Indian sellers easier access to global markets and could benefit international e‑commerce players such as Amazon.