[REVISION HISTORY]
India e‑commerce FDI policy change
Updated 2 times since CLSTR started tracking revisions of this situation.
What changed
2026-08-05 23:22 UTC → 2026-08-06 19:06 UTC ·
added
removed
On 23 July 2026 India’s Department for Promotion of Industry and Internal Trade (DPIIT) announced that foreign direct investment is allowed 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 kept retained the 100 % FDI allowance for B2B and marketplace models and retained 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 now own inventory and sell Indian‑made products directly overseas. Amazon welcomed the shift, citing its goal a target of $80 billion in cumulative exports from India by 2030, while domestic retailers warned that foreign players could gain of an unfair advantage. The change clarification coincided with India‑United States India‑U.S. trade talks where e‑commerce market access is a contentious issue. 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) registration, requiring and required firms to manage export inventory against confirmed overseas orders, maintain a digital records 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, and the framework took effect immediately. 2030.
Versions
- 2026-08-06 19:06 UTC India e‑commerce FDI policy change
- 2026-08-05 23:22 UTC India e‑commerce FDI policy change
- 2026-07-27 05:25 UTC India e‑commerce FDI policy change
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