India eases FDI rules for export-focused e-commerce companies
India has revised its foreign direct investment rules to allow foreign-funded e-commerce companies to use inventory-based models for exporting goods manufactured in India.
The change modifies the 2020 Consolidated FDI Policy Circular and allows e-commerce entities to operate an inventory-based model exclusively for export.
Existing curbs on business-to-consumer and inventory-based e-commerce will not apply to exports under the new provision.
The decision aims to facilitate greater exports through easier access to global markets by Indian sellers.