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Dated: 07.09.2026

India Eases E-Commerce Rules: Inventory-Based Model Now Permitted for Export of Indian Goods

The Government of India has introduced a significant amendment to its Foreign Exchange Management (Non-debt Instruments) Rules, 2019, opening new avenues for e-commerce entities focused on exports. This article provides a detailed overview of the changes, their implications, and what they mean for businesses and the broader export ecosystem.

Background: Regulatory Landscape for E-Commerce in India

Historically, India has maintained strict regulations on e-commerce models, especially concerning inventory-based operations. Under previous rules, e-commerce entities were largely restricted from operating inventory-based models for Business-to-Consumer (B2C) sales, aiming to protect small retailers and ensure fair competition. These restrictions, however, also limited the ability of Indian manufacturers and producers to leverage e-commerce platforms for global exports.

The 2026 Amendment: What Has Changed?

On September 2, 2026, the Ministry of Finance issued a notification amending the Foreign Exchange Management (Non-debt Instruments) Rules, 2019. The key highlights of the amendment are:

1. Permission for Inventory-Based E-Commerce for Exports
   • E-commerce entities are now allowed to engage in inventory-based models exclusively for the export of goods or products manufactured or produced in India.
   • This is to be done in accordance with the Foreign Trade Policy 2023, the Handbook of Procedures (HBP), and the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015.
2. Relaxation of B2C and Inventory-Based Restrictions for Exports
   • The previous restrictions on B2C and inventory-based e-commerce models (as outlined in earlier provisions) will not apply to the export of goods or products through e-commerce, as permitted by the new clause.

Implications for E-Commerce and Exporters

1. Boost to Export-Oriented E-Commerce

• Indian e-commerce platforms can now directly hold inventory and sell products overseas, streamlining logistics and improving delivery timelines for international customers.
• This move is expected to enhance the global competitiveness of Indian products, especially in sectors like handicrafts, textiles, electronics, and consumer goods.

2. Opportunities for Indian Manufacturers

• Manufacturers and producers in India can partner with e-commerce entities to access global markets more efficiently, leveraging the platforms’ inventory and fulfillment capabilities.

3. Alignment with Foreign Trade Policy

• The amendment ensures that export-focused e-commerce operations are aligned with the latest Foreign Trade Policy and regulatory frameworks, providing clarity and legal certainty for businesses.

Compliance Requirements

E-commerce entities availing this relaxation must:

• Ensure that goods or products exported are manufactured or produced in India.
• Adhere to the provisions of the Foreign Trade Policy 2023 and the Handbook of Procedures.
• Comply with the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015.

Conclusion

This regulatory change marks a progressive step in India’s approach to e-commerce and exports. By permitting inventory-based models for export purposes, the government aims to empower Indian businesses to tap into global demand more effectively, fostering growth and innovation in the sector.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!

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Source: Ministry of Finance

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