India has revised its foreign direct investment rules to permit foreign-funded e-commerce companies to use inventory-based models exclusively for exporting goods manufactured or produced in India. The change, set out in a review of FDI policy on the e-commerce sector, modifies the 2020 Consolidated FDI Policy Circular and adds a new provision allowing such entities to operate an inventory-based model solely for exports. Existing curbs on business-to-consumer and inventory-based e-commerce will not apply to exports under the new provision, which takes effect from the date of the Foreign Exchange Management Act notification. Amazon told Reuters the policy shift would help manufacturers in smaller towns and cities access overseas buyers and supports its target of reaching $80 billion in cumulative exports from India by 2030. The relaxation marks a rare easing of India's tightly controlled e-commerce regime, which has long prevented foreign online retailers from directly buying and selling goods.
Amazon.com IncIndia eases FDI rules to allow inventory-based e-commerce for exports, benefiting Amazon's export operations.