# India e‑commerce FDI policy change

> Live situation record from CLSTR: https://clstr.news/situations/india-ecommerce-fdi-policy-change
> Updated: 2026-08-04T10:59:20.000Z. Sources: 12. Developments: 3.

On 23 July 2026 India’s Department for Promotion of Industry and Internal Trade (DPIIT) announced that foreign direct investment is permitted in inventory‑based e‑commerce models when the goods are exported, aligning the rule with the 2023 Foreign Trade Policy and FEMA regulations. The amendment retained the 100 % FDI allowance for B2B and marketplace models and kept the ban on domestic B2C and inventory‑based e‑commerce.

Three days later, on 26 July 2026, the government clarified that foreign‑funded e‑commerce firms may own inventory and sell Indian‑made products directly overseas. Amazon welcomed the shift, citing a target of $80 billion in cumulative exports from India by 2030, while domestic retailers warned of an unfair advantage. The clarification coincided with India‑U.S. trade talks where e‑commerce market access was contentious.

On 5 August 2026 the Directorate General of Foreign Trade (DGFT) issued Public Notice No. 25/2026‑27, operationalising an inventory‑based cross‑border e‑commerce export framework. The notice introduced the Exporter‑on‑Record (EOR) registration (Form ANF 9A) and required firms to manage export inventory against confirmed overseas orders, maintain a digital repository linking procurement, GST invoices and export documents, and comply with anti‑stockpiling, reverse‑logistics and dispute‑resolution rules.

A related announcement on 4 August 2026 detailed the framework’s regulatory architecture: it defines both Exporter‑on‑Record and Seller‑on‑Record entities, mandates that export inventory be procured only after confirmed orders, and obliges EORs to handle customs formalities, destination‑country compliance, packaging, logistics, reverse‑logistics, timely payment to Indian sellers and proportionate pass‑through of export rebates. Registration with DGFT is mandatory, with annual compliance certification and DGFT oversight. The government aims to generate $200‑$300 billion in e‑commerce exports by 2030.

## Claims

- The framework defines the roles of Exporter‑on‑Record (EOR) and Seller‑on‑Record (SOR). (corroborated by 3 sources)
- DGFT issued Notification No.27/2026‑27‑DGFT on 5 August 2026 introducing an inventory‑based cross‑border e‑commerce facilitation framework under the Foreign Trade Policy 2023. (corroborated by 2 sources)
- Exporters must maintain a segregated, traceable export inventory and a digital repository accessible to DGFT. (corroborated by 2 sources)
- Export inventory may be procured only against confirmed export orders; speculative inventory build‑up is prohibited. (corroborated by 2 sources)
- Exporters must bear the cost of reverse logistics and cannot sell returned consignments in the domestic market. (corroborated by 2 sources)
- E‑commerce platforms must register as Exporter‑on‑Record entities with DGFT to operate under the framework. (corroborated by 2 sources)
- Exporters must make payment to Sellers‑on‑Record within seven days of acceptance of goods. (single source)
- The new regime aims to generate $200‑$300 billion in e‑commerce exports from India by 2030. (single source)

## Timeline

### 2026-08-04: India launches inventory‑based cross‑border e‑commerce export framework

India’s DGFT has operationalised an inventory‑based cross‑border e‑commerce export framework, creating Exporter‑on‑Record entities, requiring export‑only inventory, digital traceability and aiming to expand e‑‑

5 sources. https://clstr.news/cluster/indias-dgft-launches-inventorybased-crossborder-ecommerce-export-framework

### 2026-07-26: India relaxes FDI rules for e‑commerce, boosting Amazon’s export model

India has eased FDI rules, permitting foreign e‑commerce firms to use inventory‑based models for exporting Indian-made goods, a move seen as a win for Amazon and aimed at boosting exports.

2 sources. https://clstr.news/cluster/india-relaxes-ecommerce-fdi-rules-letting-foreign-firms-export-directly

### 2026-07-23: India Allows Foreign Direct Investment in Inventory‑Based E‑commerce for Exports

India’s DPIIT approved FDI in inventory‑based e‑commerce for export of Indian‑made goods, aiming to increase exports while keeping domestic B2C restrictions unchanged.

5 sources. https://clstr.news/cluster/india-approves-fdi-for-inventorybased-ecommerce-focused-on-exports

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Cite as: India e‑commerce FDI policy change. CLSTR, https://clstr.news/situations/india-ecommerce-fdi-policy-change