India has relaxed foreign direct investment (FDI) rules to allow foreign e-commerce firms to adopt an inventory-based model for exports. This policy change enables companies like Amazon and Walmart-owned Flipkart to purchase goods directly from Indian manufacturers for international sale.
Previously, these firms were restricted to a marketplace model that only connected independent buyers and sellers to protect local retailers. The prohibition on inventory-led models for domestic sales remains in effect.
The government aims to boost national exports and improve global market access for Indian sellers. Amazon expects the move to support its target of reaching $80 billion in cumulative exports from India by 2030.