India eases e-commerce FDI rules, lets foreign-funded firms own inventory for exports
The Indian government has relaxed foreign direct investment (FDI) rules, allowing foreign-funded e-commerce companies to own inventory for exports of goods produced in India. This change enables firms like Amazon and Flipkart to purchase directly from Indian manufacturers and manage their own supply chains for overseas sales. The new framework will take effect upon notification under the Foreign Exchange Management Act (FEMA), although concerns remain about potential future extensions to domestic sales.