The government is considering a proposal to permit foreign direct investment (FDI) in the inventory-based model of ecommerce exclusively for export purposes, Commerce and Industry Minister Piyush Goyal said.
At present, India’s FDI policy allows foreign investment only in ecommerce firms operating under the marketplace model, not the inventory-based one. The new proposal, Goyal said, would help boost India’s export potential without affecting domestic small retailers.
“I liked that proposal, the department is examining it,” Goyal told Press Trust of India. “If such ecommerce firms want to keep inventory for exports, I think we have no objection to that,” he added.
The proposal, initiated by the Directorate General of Foreign Trade (DGFT), is under review by the Department for Promotion of Industry and Internal Trade (DPIIT). The minister said that the government “may need to issue a clarification” to tweak the current policy framework.
Ecommerce industry players have long sought a relook at the FDI policy for export-focused models, citing the need to expand India’s presence in global ecommerce trade. The government, too, is working on initiatives such as establishing ecommerce export hubs to encourage outbound online trade.
Currently, India’s ecommerce exports are estimated at just $2 billion, compared with China’s $350 billion. Global ecommerce trade, valued at about $800 billion, is projected to touch $2 trillion by 2030.
A recent report by the Global Trade Research Initiative (GTRI) suggested that India’s ecommerce exports could reach $350 billion by 2030, but banking challenges and high operational costs remain major obstacles.
India’s ecommerce export ecosystem is dominated by small businesses selling items worth between $25 and $1,000, including handicrafts, garments, books, imitation jewellery, home décor, ayurvedic products, and sports goods.
The government has set an ambitious goal of achieving $1 trillion in merchandise exports by 2030, identifying cross-border ecommerce as a key contributor to that target.
On the broader trade outlook, Goyal noted that despite global uncertainties, India’s exports are showing steady growth. During April–August FY26, exports rose to $184.13 billion from $179.6 billion in the same period last year.
He acknowledged that global trade has been impacted by factors such as the United States imposing high tariffs of up to 50% on several countries, including India. The World Trade Organisation (WTO) projects global merchandise trade to grow by 2.4% this year and only 0.5% next year.
“Exporters are focusing on alternative markets,” Goyal said, adding that India is working to strengthen trade ties with new partners.
The minister made the remarks during his two-day visit to Qatar, where he met Qatari leaders and business representatives to explore avenues for boosting bilateral trade and investment.