Government allows foreign investment in e-commerce inventory model for exports
The Department for Promotion of Industry and Internal Trade (DPIIT) permitted foreign direct investment (FDI) in the inventory-based model of e-commerce, aiming to boost exports. This decision follows petitions from micro, small, and medium enterprises (MSMEs) seeking to ease compliance burdens, allowing manufacturers to avoid individual paperwork through large e-commerce platforms like Amazon and Flipkart. The move comes just ahead of the US's planned tariff changes on Indian goods, which could impact trade dynamics.