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Union Finance Ministry modifies FDI norms for e-commerce firms
04-Sep-2026, 11:13
The Department of Economic Affairs under the finance ministry has updated Foreign Direct Investment (FDI) norms. E-commerce firms can now hold inventory only for export purposes, and they must export goods made in India. Additionally, FDI in inventory-based e-commerce retailing is still not allowed. This change was notified on September 2 and added to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.
The Department of Economic Affairs under the finance ministry has updated Foreign Direct Investment (FDI) norms. E-commerce firms can now hold inventory only for export purposes, and they must export goods made in India. Additionally, FDI in inventory-based e-commerce retailing is still not allowed. This change was notified on September 2 and added to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.