India has relaxed foreign direct investment rules for the e-commerce sector in a move aimed at supporting exports of goods made in the country. Under the updated policy, foreign-funded e-commerce companies will be allowed to use inventory-based models when those operations are meant only for exports.
The change means restrictions that usually apply to inventory-led e-commerce and business-to-consumer sales under India’s FDI framework will not apply in cases involving exports of products produced in India. The policy shift was outlined in Press Note 3 of 2026.
The decision signals a targeted effort by the government to strengthen outbound sales without broadly changing the domestic rules for e-commerce. By carving out exports from existing limits, India is creating more room for global-backed online platforms to source and sell Indian-made goods in overseas markets.
The easing of norms could help expand export channels for locally manufactured products and improve access to international buyers through digital commerce networks. It also underlines the government’s focus on using e-commerce as a tool to boost shipments of Indian goods abroad.
