Explainer: How FDI in inventory-based e-commerce can help MSMEs

The government proposes to allow FDI in inventory-based e-commerce platforms to shore up exports. The crucial question is whether foreign e-commerce firms, despite their potential to boost export demand through their global presence, will operate in a way that benefit Indian producers, writes Beena Saraswathy

l What are the changes proposed by the govt?

THE PRESS NOTE issued by the Department of Industrial Policy and Promotion (DIPP) on July 23, 2026 has proposed to remove restrictions on foreign direct investment (FDI) in the inventory based model, exclusively for the export of domestically manufactured products.