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India Eases FDI Rules for E-Commerce Exports, Allowing Foreign-Funded Firms to Hold Inventory

Published July 26, 2026 at 10:33 AM UTC

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India has relaxed foreign direct investment rules for e-commerce exports, allowing foreign-funded companies to own inventory meant for overseas sales. The policy change, reported by Medianama, aims to boost exports by removing a previous restriction that prevented such firms from holding stock. Previously, e-commerce companies with foreign investment were barred from controlling inventory, forcing them to act only as marketplaces. The new rule permits them to own goods for export, potentially opening up larger-scale operations. This move is part of broader efforts to make India a bigger player in global e-commerce trade. Small exporters and logistics firms may benefit from easier access to inventory and streamlined processes. However, domestic retailers have expressed concerns about increased competition. The government expects the change to simplify compliance and reduce costs for export-oriented e-commerce platforms. The exact implementation timeline remains unclear, but industry analysts predict a positive impact on India's export volumes.