Government eases FDI rules for e-commerce companies aimed at export, first big relaxation in years
In a significant relaxation in its long-held stance, the government has proposed allowing foreign direct investment (FDI) in e-commerce companies that hold inventory and don’t just act as marketplaces as long as this inventory is used for exports. Net FDI turned negative again in May 2026 with outflows exceeding inflows by $74 millionIndia has for nearly a decade allowed FDI only in business to business (B2B) e-commerce and where the e-commerce company only serves as a marketplace but does not hold inventory of its own. The reality behind falling net FDIAccording to Sunil Kumar, partner in the tax and regulatory services division of EY India, this press note has provided clarity in an area that was earlier under doubt.
- ▪In a significant relaxation in its long-held stance, the government has proposed allowing foreign direct investment (FDI) in e-commerce companies that hold inventory and don’t just act as marketplaces as long as this inventory is used for e
- ▪Net FDI turned negative again in May 2026 with outflows exceeding inflows by $74 millionIndia has for nearly a decade allowed FDI only in business to business (B2B) e-commerce and where the e-commerce company only serves as a marketplace bu
- ▪The reality behind falling net FDIAccording to Sunil Kumar, partner in the tax and regulatory services division of EY India, this press note has provided clarity in an area that was earlier under doubt.
2 outlets in our directory ran this story, first to last over 15 hours. All of the coverage we found sits in one bucket: centre. That one-sidedness is itself worth noticing.
- ▪ India eases FDI rules for e-commerce firms to boost exports of locally made goods — Business Line - Home
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In a significant relaxation in its long-held stance, the government has proposed allowing foreign direct investment (FDI) in e-commerce companies that hold inventory and don’t just act as marketplaces as long as this inventory is used for exports. Net FDI turned negative again in May 2026 with outflows exceeding inflows by $74 millionIndia has for nearly a decade allowed FDI only in business to business (B2B) e-commerce and where the e-commerce company only serves as a marketplace but does not hold inventory of its own.
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