What Changed
On 23 July 2026 the DPIIT issued a press note permitting foreign-funded e-commerce entities to operate an inventory-based model exclusively for exporting goods manufactured or produced in India. Eligible companies can buy qualifying Indian-made goods from manufacturers and hold that inventory for export.
Existing restrictions on foreign-funded inventory-based e-commerce serving domestic consumers are unchanged, and the change takes effect only on notification under FEMA. Businesses running both domestic marketplace and export inventory operations should keep the two models clearly separated.
Source pending: replace with the DPIIT press note before publishing.
Why It Matters
Narrow relevance, but sharply relevant if it applies. This matters for brands with an export ambition or already selling into overseas markets through a marketplace — it does not change anything for a purely domestic D2C business.
Two caveats worth holding onto. The change takes effect only on notification under FEMA, so it is an announced direction rather than an operative rule today. And nothing about the domestic restriction has moved: foreign-funded inventory-based e-commerce serving Indian consumers remains off the table.
For anyone running both a domestic marketplace presence and an export operation, keeping the two models clearly separated is the compliance point to raise with counsel early rather than retrofit.