·
The Department for Promotion of Industry and
Internal Trade (DPIIT) has issued Press Note No. 3 (2026 Series)
reviewing the FDI Policy
on the e-commerce sector.
·
Under
the existing Consolidated
FDI Policy Circular, 2020:
o 100% FDI is permitted in Business-to-Business (B2B) e-commerce.
o FDI is permitted in the marketplace model of
e-commerce.
o FDI is prohibited in:
§ Business-to-Consumer (B2C) e-commerce, and
§ Inventory-based e-commerce models, where the e-commerce entity owns
inventory and sells directly to consumers.
·
To
promote exports and improve global market access for Indian sellers, the
Government has relaxed
these restrictions for exports.
·
A new Para 5.2.15.2.5 is
proposed to be inserted in the FDI Policy titled:
o "Inventory-Based Model of E-Commerce
Exclusively for Exports."
·
The
new provision permits an e-commerce
entity to operate an inventory-based model exclusively for exports
of goods/products that are:
o Manufactured and/or produced in India; and
o Exported in accordance with:
§ the Foreign
Trade Policy (FTP) 2023,
§ the Handbook
of Procedures (HBP), and
§ the Foreign
Exchange Management (Export of Goods & Services) Regulations, 2015,
as amended.
·
The
existing restrictions relating to:
o B2C e-commerce, and
o inventory-based e-commerce models under Paras 5.2.15.2.1 to 5.2.15.2.4,
will not apply
to exports undertaken under the new provision.
·
The
policy change is intended to:
o Facilitate greater exports,
o Provide easier access to international
markets for Indian manufacturers, and
o Strengthen India's export-oriented
e-commerce ecosystem.
·
The
revised policy will come
into effect from the date of the relevant FEMA notification.