Govt eases FDI rules to allow inventory-based e-comm exports

Government announced that foreign-funded e-commerce companies will be allowed to operate an inventory-based model exclusively for exports purposes, relaxing long-standing restrictions under the foreign direct investment (FDI) policy. The Department for Promotion of Industry and Internal Trade (DPIIT) on Wednesday reviewed the FDI policy for the e-commerce sector, and proposed that restrictions applicable to inventory-based e-commerce and business-to-consumer (B2C) sales will not be allowed to avail the relaxation as this move is particularly for exports purposes.