Govt Considering FDI In Inventory-Based E-Commerce To Boost Exports: Piyush Goyal

2025-10-09 02:09:02

(MENAFN- KNN India) New Delhi, Oct 9 (KNN) The government is examining a proposal to allow foreign direct investment (FDI) in an inventory-based model of e-commerce exclusively for export purposes, Commerce and Industry Minister Piyush Goyal said, noting that the move could boost India's outbound shipments without affecting small retailers.

Currently, India's FDI policy permits foreign investment only in e-commerce firms operating through a marketplace model, not in those maintaining their own inventory.

“I liked that proposal, the department is examining it,” Goyal told PTI, adding that if foreign e-commerce firms wish to hold inventory for exports,“we have no objection to that.” He indicated that a formal clarification of existing rules may be sufficient to implement the policy change.

The proposal, initiated by the Directorate General of Foreign Trade (DGFT), is under review by the Department for Promotion of Industry and Internal Trade (DPIIT), and e-commerce stakeholders have also called for a reconsideration of the FDI rules.

The government is simultaneously promoting measures to boost exports via e-commerce, including the development of e-commerce export hubs.

India's e-commerce exports currently stand at around USD 2 billion, compared with China's USD 350 billion. Globally, cross-border e-commerce trade is estimated at USD 800 billion and expected to reach USD 2 trillion by 2030.

A report by economic think tank GTRI notes that India's e-commerce exports could potentially reach USD 350 billion by 2030, though banking and operational challenges remain a hurdle.

Small businesses, which drive India's e-commerce exports, typically ship products valued between USD 25 and USD 1,000, including handicrafts, art, books, ready-made garments, imitation jewellery, gems and jewellery, home décor, Ayurveda products, and sports goods.

Cross-border e-commerce has been identified as a key avenue for India to meet its target of USD 1 trillion in merchandise exports by 2030.

Between April and August 2025-26, exports rose to USD 184.13 billion from USD 179.6 billion in the same period last fiscal.

Goyal highlighted that exporters are exploring alternative markets to sustain growth.

(KNN Bureau)

MENAFN09102025000155011030ID1110174709

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.