Govt Operationalises New Framework To Spur Ecommerce Exports

More than a week after exempting B2B ecommerce exports from foreign direct investment (FDI) rules, the government has now notified the new norms to enable online marketplaces to export products from India. 

In a circular dated August 5, the Directorate General of Foreign Trade (DGFT) rolled out a new operating framework to enable “inventory-based cross-border ecommerce”. Clubbed under Foreign Trade Policy, 2023, the new policy creates a registration process for marketplaces looking to export products from the country. 

The rules come into effect immediately, read the DGFT circular.

The new framework outlines how B2B ecommerce exports will work in practice. It covers registration, inventory handling, seller visibility, reverse logistics, compliance checks and dispute resolution.

The new regime bars stockpiling of goods and allows ecommerce platforms to only procure goods against confirmed export orders. 

“Export inventory may be procured only against confirmed export orders, and speculative inventory build-up for export purposes is not permitted. The export inventory must be distinctly identified, segregated and maintained through a digital repository to ensure complete traceability. Further, export inventory cannot be diverted for sale in the domestic market,” said the commerce ministry in a statement.

The Finer Print

The new norms also introduce the concept of an “exporter-on-record”, an entity that shall be responsible for managing export inventory, making sure the goods are compliant and handling the export process. The entity, in other words inventory-based cross-border marketplaces, is mandatorily required to register with the DGFT.

Under the framework, exporters must also build a digital repository that links procurement records, GST invoices and export documents to each “seller-on-record”. The repository must be accessible to DGFT and other authorised authorities. 

In addition, the onus will be on exporter-on-record to also ensure that:

• goods in inventory match what the seller declared
• inventory, prior to export, complies with all laws
• requirements of the destination country including testing, inspection, certification, accreditation, registration, licensing and conformity assessments
• goods also follow market access requirements such as labelling, packaging, marking, product information and safety warnings

In terms of seller protections, the new framework offers merchants visibility into consolidated inventory records of the marketplaces, including final sale price, order status, shipment tracking and destination country. The rules also require ecommerce platforms to disclose the manufacturer and owner of the brand.

The new rules also envisage that goods that fail quality checks should be returned to the seller within seven days. Returned or rejected goods from overseas buyers will have to be re-exported, returned, destroyed or otherwise disposed of within 30 days, added the circular.

The new framework also offers a dispute resolution mechanism. Issues of contention between exporters and sellers will be referred to the relevant DGFT regional authority for resolution within 30 days. Any further escalation will be adjudicated by DGFT (headquarters).

“The framework also provides for timely payments to Indian sellers within the prescribed timeline, irrespective of the receipt of payment from overseas buyers. Export rebates and refunds are required to be apportioned and passed through to the Sellers-on-Record in proportion to the FOB (freight on board) value attributable to their goods,” noted the ministry’s statement.

Online marketplaces looking to export goods under the new regime will also be required to get an annual compliance certificate from an independent professional for submission before DGFT within 90 days of the end of the fiscal year.

Under current rules, the Centre allows marketplaces to only connect buyers and sellers for a fee. While these restrictions continue for local goods, the directive has been removed for exports.

For years, Amazon and Walmart were at odds with the Centre over the restriction. However, officials began reviewing the demand in August last year after the commerce ministry held discussions with industry stakeholders to explore pilot projects to enable marketplaces to source products from Indian sellers for resale overseas.

During the meeting, ecommerce major Amazon reportedly lobbied heavily to exempt exports from FDI restrictions. However, several retail bodies pushed against the move, citing alleged deep-discounting tactics and favourable policies (for large sellers) employed by Amazon and Flipkart.

Thereafter in November 2025, the commerce ministry reportedly circulated a note on allowing FDI in inventory-based ecommerce models, solely for exports, to boost exports from the country without denting small retailers and businesses. It then also sought views and comments on the note from stakeholders.

With this, all decks have now been cleared for players like Amazon and Walmart-owned Flipkart to buy products directly from Indian sellers and then sell them to customers overseas.

At the heart of all this is the Centre’s bid to enable $200-$300 Bn in ecommerce exports from India by 2030.

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