Govt Weighs Inventory-Led Ecommerce Framework

SUMMARY

In an effort to spur international trade, the government is reportedly weighing the option of permitting inventory-led ecommerce models for exports

The commerce ministry has held consultations with ecommerce majors, logistics players and trader bodies

Under the current Indian FDI rules, ecommerce platforms can only operate as marketplaces, not as inventory-based models

In an effort to spur international trade, the government is reportedly weighing the option of permitting inventory-led ecommerce models for exports.

An NDTV report, citing sources, said that the commerce ministry has held consultations with ecommerce majors, logistics players and trader bodies to explore pilot projects enabling global platforms to source products directly from Indian sellers for overseas resale.

Under the current Indian foreign direct investment (FDI) rules, foreign-invested ecommerce platforms can only operate as marketplaces, not as inventory-based models. This means they cannot own inventory or sell directly to consumers; instead, they facilitate transactions between buyers and sellers. These platforms can receive 100% FDI under the automatic route, but are barred from controlling inventory or significantly influencing the sale price to ensure a level playing field for all sellers.

The development follows a recent report claiming that Amazon is lobbying the Commerce Ministry to amend FDI rules so that it can directly buy goods from Indian sellers and export them.

However, three retailer bodies opposed easing ecommerce restrictions during a ministry meeting, citing concerns that such a move would harm small Indian businesses by allowing Amazon and Flipkart to continue offering deep discounts and favouring certain large sellers, thereby undermining market fairness and small-scale traders.

The Ministry of Statistics and Programme Implementation (MoSPI) will reportedly begin collecting price data directly from ecommerce giants like Amazon and Flipkart to update and overhaul its benchmark inflation gauge.

“The statistics ministry has begun scraping prices from e-commerce websites in 12 cities with populations above 2.5 million and is in talks with platforms to access data directly,” MoSPI Secretary Saurabh Garg was quoted as saying in the report.

India’s Push To Strengthen Ecommerce Exports

India has been prioritising export growth, with finance minister Nirmala Sitharaman announcing in her February budget speech that the Centre will launch an Export Promotion Mission with sectoral and ministerial targets.

In September last year, the Central Board of Indirect Taxes and Customs (CBIC) extended export-related benefits under the remission of duties and taxes on exported products (RoDTEP) scheme to shipments made through courier mode, to streamline ecommerce exports out of India.

In November 2024, the government selected Shiprocket and Cargo Service Centre (CSC) to pilot ecommerce export hubs (EEHs) near Delhi’s international airport, with operations starting in February this year.

As per Inc42 data, the Indian ecommerce market is projected to surpass $400 Bn by 2030, fueled by a growing base of more than 500 Mn online shoppers. Key factors driving this expansion include rising internet penetration, increased adoption of digital payments and the growing prominence of smaller cities.