ARTICLE · 19 AUGUST 2026

FDI Policy Update - Inventory Based E-Commerce Model For Exports

Aurtus Consulting LLP

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The Department for Promotion of Industry and Internal Trade (‘DPIIT’) issued a Press Note No. 3 (2026 Series) on 23 July 2026 amending the Consolidated FDI Policy Circular of 2020 dated 15 October 2020 (‘FDI Policy’) in relation to foreign funded e-commerce companies.

IndiaGovernment, Public Sector

Aurtus Consulting LLP

BACKGROUND

The Department for Promotion of Industry and Internal Trade (‘DPIIT’) issued a Press Note No. 3 (2026 Series) on 23 July 2026 amending the Consolidated FDI Policy Circular of 2020 dated 15 October 2020 (‘FDI Policy’) in relation to foreign funded ecommerce companies.
With this amendment, an e-commerce entity with foreign investment is permitted to operate an inventory-based model exclusively for the export of goods manufactured
in India. In other words, an FDI backed e-commerce entity can now purchase goods manufactured in India, hold them as inventory and sell them directly to customers
outside India.
We have summarized below the current regulatory position under FEMA, together with the amendments introduced by the DPIIT.

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