India may allow foreign e-tailers to hold inventory
India is considering a major policy shift: allowing foreign e-commerce companies like Amazon and Flipkart to hold inventory and export products straight from India.
This would move away from the current rule where they can only act as online marketplaces and could open new doors for Indian sellers to reach global buyers.
Why is this significant?
Right now, fewer than 1 in 10 Indian small businesses export online because the rules are tough.
If these changes happen, it could make exporting much simpler for small and medium businesses, helping them tap into the booming global e-commerce market—expected to hit $2 trillion by 2034.
With India's e-commerce exports at just $4-5 billion (compared to China's $250 billion), this move could help Indian brands go global and close the gap.
Plus, new government-backed export hubs are in the works to give extra support to local sellers aiming for international markets.