India Eases FDI Rules to Allow Export-Focused Inventory-Based E-Commerce
India has revised its foreign direct investment (FDI) policy to allow e-commerce companies with foreign funding to use inventory-based models exclusively for exporting goods made in India. Previously, such a model was restricted under the country's tight regulations on business-to-consumer and inventory-based e-commerce. The new provision aims to boost Indian exports by enabling easier access to global markets. The change is expected to benefit companies like Amazon, which has expressed support for the move as it aligns with its goal of achieving $80 billion in cumulative exports from India by 2030. This policy shift follows discussions between industry groups and government officials last year, where concerns were raised about potential advantages foreign firms might gain over local retailers. The decision is seen as a step toward resolving long-standing tensions around e-commerce regulations with the United States, which has been working to finalize a trade agreement with India.
Topics: e-commerce export policy FDI India-US trade