With an aim to improve India's outbound shipments without impacting the businesses of small retailers, the Department for Promotion of Industry and Internal Trade (DPIIT) has permitted foreign direct investment (FDI) in an inventory-based model of e-commerce ‘exclusively’ for export purposes.
It said ‘In order to facilitate greater exports through easier and increased access of global markets by Indian sellers, the extant FDI Policy has been reviewed and it is decided that the restrictions on inventory-based model of e-commerce shall not apply in case of exports of domestically manufactured and/or produced goods/products’.
FDI is permitted in Business to Business (B2B) e-commerce and marketplace model. However, it is not permitted in Business to Consumer (B2C) e-commerce and inventory-based model of e-commerce where inventory of goods and services is owned by an ecommerce entity and is sold to consumers directly.
The DPIIT has inserted a clause in the policy, which states: ‘An e-commerce entity is permitted to engage in inventory-based model of ecommerce exclusively for the export of goods/products manufactured and/or produced in India as per the applicable provisions of the Foreign Trade Policy 2023...and the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015’.
Start Research-backed Investing ...Now. Subscribe to Sapphire
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: