India to allow e-commerce firms to hold inventory for exports
India is set to revamp its e-commerce export policy to help small and medium businesses (SMEs) sell abroad more easily.
On September 15, government officials will meet with Amazon, Walmart, and logistics companies to discuss a third-party export facilitation model—meaning a dedicated export entity would manage compliance, logistics, and customs procedures.
This would be a shift from current FDI rules that don't allow marketplaces to hold inventory.
Proposed changes aim to cut red tape
Right now, less than 10% of Indian MSMEs export online because high costs and tricky rules make it tough.
Most new exporters from 2020-2024 have already dropped out by 2025 due to these hurdles.
The proposed changes aim to cut red tape so small businesses can focus on building their brands—even as US trade policies get stricter.
If these reforms go through, it could open up global markets for more Indian entrepreneurs while still protecting local shops at home.