India proposes foreign e-commerce firms holding inventory for Indian-made exports
India just proposed a big change: foreign e-commerce companies (think Amazon) could soon be allowed to actually hold inventory in India, but only for exporting Indian-made products.
Right now, these companies can't keep stock here; they just run online marketplaces.
The idea, announced July 23, 2026, would tweak the foreign direct investment (FDI) policy and needs some rule changes before it kicks in.
GTRI warns of domestic spillover
This move could make exporting easier for global players but has sparked debate.
The Global Trade Research Initiative (GTRI) worries that letting these companies hold inventory might spill over into domestic sales too, which could impact local businesses.
They also point out that India often gives foreign firms special breaks without getting much in return, a pattern that could weaken India's hand in future trade deals.