FDI in inventory-based e-commerce models exclusively for exports permitted – DPIIT

In brief

On 23 July 2026, the Department for Promotion of Industry and Internal Trade (DPIIT) issued a Press Note1 (PN3 2026) reviewing para 5.2.15.2 of the Consolidated Foreign Direct Investment (FDI) Policy Circular of 2020 (FDI Policy), as applicable to the e-commerce sector. PN3 2026 now permits ecommerce entities that have foreign investment or are eligible to receive foreign investment to engage in an inventory-based e-commerce model exclusively for the export of goods or products manufactured or produced in India.

These changes will take effect from the date of the corresponding notification amending the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, issued under the Foreign Exchange Management Act, 1999 (FEMA).