Govt may tweak e-commerce FDI norms to boost MSMEs to export

To facilitate greater participation of MSMEs in global e-commerce exports, the Directorate General of Foreign Trade (DGFT) has proposed introducing an inventory-based e-commerce export model. Under this framework, third-party export entities would hold inventory and manage backend processes on behalf of MSMEs.

To operationalise the model, DGFT has also suggested amendments to e-commerce FDI regulations, specifically reviewing the current prohibition on inventory-based e-commerce for this export-only carve-out.