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ARTICLE · 15 SEPTEMBER 2026

FDI In E-Commerce: India's Export-Focused Carve-Out Under Press Note 3 (2026 Series)

Saga Legal
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On 23 July 2026, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, issued Press Note No. 3 (2026 Series) a document whose brevity belies the significance of what it achieves. In a little over two pages, the Government of India has quietly dismantled one of the most longstanding restrictions in its FDI policy architecture: the blanket prohibition on foreign investment in inventory-based e-commerce. The caveat, however, is precise and deliberate: the permission is confined exclusively to exports of goods manufactured or produced in India.

IndiaGovernment, Public Sector
Neeraj Vyas
Neeraj Vyas
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An Analysis of the DPIIT Amendment and Its Legal Implications

On 23 July 2026, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, issued Press Note No. 3 (2026 Series) a document whose brevity belies the significance of what it achieves. In a little over two pages, the Government of India has quietly dismantled one of the most longstanding restrictions in its FDI policy architecture: the blanket prohibition on foreign investment in inventory-based e-commerce. The caveat, however, is precise and deliberate: the permission is confined exclusively to exports of goods manufactured or produced in India.

This article examines the legal text of the amendment, situates it within the decade-long regulatory history of FDI in Indian e-commerce, analyses the multi-instrument framework through which it has been operationalised, and identifies the open questions that practitioners and businesses will need to navigate in the months ahead.

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