DPIIT Permits Inventory-based E-commerce Model For Export Of Manufactured/produced Goods Domestically

The Department for Promotion of Industry and Internal Trade (“DPIIT”), Ministry of Commerce and Industry, Government of India, on 23.07.2026, issued Press Note No. 3 (2026 Series) (DPIIT F. No. P-15015/9/2025-FDI Policy) (“Press Note”)¹, reviewing the Foreign Direct Investment (“FDI”) policy applicable to the e-commerce sector.

Under the existing Consolidated FDI Policy Circular of 2020, as amended from time to time (“FDI Policy”), FDI is permitted in Business-to-Business (“B2B”) e commerce and the marketplace model of e-commerce, while FDI is not permitted in Business-to-Consumer (“B2C”) e-commerce and the inventory-based model of e-commerce, where the inventory of goods and services is owned by the e-commerce entity and sold directly to consumers.