{"id":368171,"date":"2026-07-25T09:28:25","date_gmt":"2026-07-25T03:58:25","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=368171"},"modified":"2026-07-25T09:28:25","modified_gmt":"2026-07-25T03:58:25","slug":"fdi-in-inventory-based-e-commerce-models","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/fdi-in-inventory-based-e-commerce-models\/","title":{"rendered":"FDI in Inventory-based E-commerce Models"},"content":{"rendered":"<div class=\"content-box-green\">\n<p><strong>News:<\/strong> The Government allowed Foreign Direct Investment in inventory-based e-commerce entities exclusively for exports of goods manufactured and produced in India.<\/p>\n<\/div>\n<h2 class=\"red-h2-box\">About FDI in Inventory-based E-commerce Models<\/h2>\n<figure id=\"attachment_368212\" aria-describedby=\"caption-attachment-368212\" style=\"width: 518px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-368212\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/07\/Source-BS-1.jpg?resize=518%2C259&#038;ssl=1\" alt=\"FDI in Inventory-based E-commerce Models\" width=\"518\" height=\"259\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/07\/Source-BS-1.jpg?resize=300%2C150&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/07\/Source-BS-1.jpg?resize=1024%2C513&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/07\/Source-BS-1.jpg?resize=768%2C385&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/07\/Source-BS-1.jpg?w=1372&amp;ssl=1 1372w\" sizes=\"auto, (max-width: 518px) 100vw, 518px\" \/><figcaption id=\"caption-attachment-368212\" class=\"wp-caption-text\">Source &#8211; BS<\/figcaption><\/figure>\n<ul>\n<li><strong>Two Models of E-commerce in India:<\/strong> India&#8217;s <strong>FDI policy<\/strong> has traditionally distinguished <strong>between two models of e-commerce:<\/strong>\n<ul>\n<li><strong>Inventory-based Model:<\/strong> The <strong>e-commerce entity owns the inventory<\/strong> of goods and <strong>sells them directly to consumers.<\/strong><\/li>\n<li><strong>Marketplace-based Model:<\/strong> The <strong>e-commerce entity acts only as an intermediary<\/strong> that <strong>connects independent sellers with buyers<\/strong> without owning the inventory.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Key Features of New Policy:<\/strong>\n<ul>\n<li><strong>Export-only FDI:<\/strong> The policy <strong>permits 100% FDI in inventory-based e-commerce entities<\/strong> <strong>exclusively for exports of goods manufactured or produced in India.<\/strong><\/li>\n<li><strong>Domestic Restriction:<\/strong> The existing <strong>ban on foreign-funded inventory-based Business-to-Consumer (B2C) e-commerce for domestic retail remains unchanged.<\/strong><\/li>\n<li><strong>Support to Manufacturers: <\/strong>The policy <strong>aims to provide Indian<\/strong> <strong>manufacturers<\/strong>, particularly MSMEs and businesses <strong>located in Tier-II and Tier-III cities<\/strong>, with <strong>easier access to international markets.<\/strong><\/li>\n<li><strong>Policy Clarity:<\/strong> The amendment <strong>clarifies that inventory restrictions apply only to domestic retail trade and not to export-only operations.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 class=\"yellow-h2-box\"><strong>Current FDI Provisions<\/strong><\/h2>\n<ul>\n<li><strong>Marketplace Model:<\/strong> <strong>Since 2016, 100% FDI under the automatic route<\/strong> has been permitted in marketplace-based e-commerce.<\/li>\n<li><strong>Inventory-based Domestic Trade:<\/strong> FDI remains <strong>prohibited in inventory-based e-commerce for domestic retail sales.<\/strong><\/li>\n<li><strong>Business-to-Business (B2B):<\/strong> FDI has <strong>already been permitted in e-commerce entities engaged in B2B operations since 2000.<\/strong><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The Government allowed Foreign Direct Investment in inventory-based e-commerce entities exclusively for exports of goods manufactured and produced in India. About FDI in Inventory-based E-commerce Models Two Models of E-commerce in India: India&#8217;s FDI policy has traditionally distinguished between two models of e-commerce: Inventory-based Model: The e-commerce entity owns the inventory of goods and&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/fdi-in-inventory-based-e-commerce-models\/\">Continue reading <span class=\"screen-reader-text\">FDI in Inventory-based E-commerce Models<\/span><\/a><\/p>\n","protected":false},"author":10401,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-368171","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/368171","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10401"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=368171"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/368171\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=368171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=368171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=368171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}