India relaxes FDI rules for e‑commerce, boosting Amazon’s export model

The Indian government has amended its foreign direct investment (FDI) policy to allow foreign‑funded e‑commerce companies to own inventory and directly export goods manufactured in India. The change lifts the previous restriction that limited foreign e‑commerce firms to a marketplace model, enabling them to purchase, store and sell Indian products to overseas buyers.

Amazon welcomed the shift, saying it will help manufacturers in smaller towns access global markets and supports its goal of $80 billion in cumulative exports from India by 2030. The policy, announced through a DPIIT press note, will take effect after related amendments to the Foreign Exchange Management Act rules. Traditional retailers, represented by the Confederation of All India Traders, have opposed the move, warning that it could give foreign firms an unfair advantage. The reform comes amid ongoing India‑United States trade negotiations, where e‑commerce market access has been a contentious issue.