Govt To Hold Talks On Policy For Inventory-Led E-Commerce Exports To Support Msmes

(MENAFN- KNN India) New Delhi, Sep 12 (KNN) The government is preparing to hold consultations with industry stakeholders to frame a policy allowing inventory-based e-commerce exports, in a move aimed at opening global markets for small and medium sellers.

The Directorate General of Foreign Trade (DGFT) will convene a meeting on September 15, expected to be attended by Amazon, Walmart-owned Flipkart, logistics firms, and other government departments, according to agenda documents reviewed by TOI.

At present, foreign e-commerce marketplaces are prohibited from holding inventory under India's foreign direct investment (FDI) policy. Introducing an inventory-led framework exclusively for exports would mark a significant departure from current norms.

Officials said the proposal has been under discussion for more than a year but has gained urgency amid signs of a possible resumption of India-US trade talks and the recent decision by the US to withdraw duty-free import provisions for packages worth up to USD 800, a move that has impacted small Indian exporters.

Less than 10 percent of Indian MSMEs selling online currently participate in e-commerce exports, constrained by compliance requirements, documentation hurdles, and high logistics costs.

Studies show nearly 87 percent of enterprises onboarded between 2020 and 2024 exited the segment by 2025.

According to an agenda note shared by DGFT and reviewed by TOI,“The proposal envisages a third-party export facilitation model, wherein a dedicated export entity linked to e-commerce platforms would handle compliance, logistics, and customs processes. This would allow MSMEs to focus on product development, quality, and branding.”

The note further said that implementing the move may require updates to DPIIT's FDI guidelines, including a review of the prohibition on inventory-based e-commerce for export-only models.

(KNN Bureau)

MENAFN12092025000155011030ID1110054605