The department, through a September 2 notification, has introduced a provision to this effect under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019. (File Photo)
\n\nThe government has brought a key change to India’s foreign investment framework, allowing e-commerce companies backed by foreign direct investment (FDI) to maintain inventory when those goods are meant exclusively for export. The Department of Economic Affairs (DEA), under the finance ministry, formalised the change through a notification dated September 2. The amendment has been incorporated into the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
\n\nThe move gives e-commerce businesses greater flexibility to stock products manufactured or produced in India, provided those products are ultimately shipped overseas. However, the relaxation does not open the door for inventory-based e-commerce retailing in the domestic market.
\n\nUnder the amended framework, an e-commerce entity can operate an inventory-based model specifically for exporting Indian-made products. The goods must be manufactured or produced in India and exported in accordance with the applicable foreign trade and foreign exchange regulations.
\n\n"An e-commerce entity is permitted to engage in inventory-based model of e-commerce exclusively for the export of goods or products manufactured or produced in India in accordance with the provisions of the Foreign…
Original source: https://www.timesnownews.com/business-economy
