The Government of India has operationalised a new Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy (FTP), 2023, aimed at enabling Indian manufacturers, artisans, traders and MSMEs to expand their access to international markets through e-commerce.
The framework has been introduced through Notification No. 27/2026-27 and the corresponding Public Notice No. 25/2026-27, both issued on August 5, 2026. It establishes a comprehensive policy and procedural framework for inventory-based cross-border e-commerce exports of goods manufactured or produced in India.
The move follows the amendment to India’s FDI Policy through Press Note No. 3 (2026 Series), which permits inventory-based e-commerce operations exclusively for exports. The new framework provides the regulatory architecture required to operationalise such exports while protecting the interests of Indian sellers.
Exporter-on-Record to Drive Compliance
Under the new framework, eligible e-commerce entities can undertake export-only inventory operations through a registered Exporter-on-Record (EOR). The EOR will procure goods from Indian Sellers-on-Record (SORs) against confirmed overseas orders, export the goods in its own name and assume responsibility for export operations and compliance with regulations in the destination country.
The model is designed to reduce the compliance burden on Indian sellers. Through the EOR, sellers can access overseas markets while delegating key activities such as export documentation, customs procedures, destination-country regulatory compliance, product testing and certification, packaging, labelling, fulfilment, logistics and reverse logistics.
The framework also provides for timely payments to Indian sellers, greater visibility of overseas sales and clear accountability for export compliance.
Safeguards to Protect Indian Sellers
The Government has incorporated several safeguards to ensure that inventory-based e-commerce exports benefit Indian manufacturers and MSMEs while preventing misuse of the system.
Export inventory can be procured only against confirmed export orders, ruling out speculative inventory accumulation. Such inventory must be distinctly identified, segregated and maintained through a digital repository to ensure end-to-end traceability. Export inventory cannot be diverted for sale in the domestic market.
Indian sellers must also receive payments within the prescribed timeline, irrespective of whether payment has been received from the overseas buyer. Export rebates and refunds are required to be passed on to Sellers-on-Record in proportion to the FOB value attributable to their goods.
Sellers will additionally receive visibility into the final sale price, order status and shipment tracking of their products.
Framework Addresses Returns and Compliance
The framework lays down procedures for handling returned or rejected consignments. Such goods must either be re-exported, returned to the seller or disposed of in accordance with prescribed procedures.
To strengthen transparency and regulatory oversight, participating entities will be required to maintain digital records and undertake annual compliance certification.
Boost to India’s Global E-Commerce Exports
The operationalisation of the framework is expected to strengthen India’s participation in global e-commerce supply chains by giving domestic businesses access to organised international fulfilment networks.
By separating production from the complexities of overseas export compliance, the framework could particularly benefit MSMEs, artisans and small manufacturers, allowing them to concentrate on production and innovation while leveraging EOR-led systems for international fulfilment.
The initiative is expected to support India’s broader objective of expanding its export base, improving market access for domestic enterprises and integrating Indian businesses more closely with global digital commerce and supply chains.
