INDUSTRY
Eased e-commerce policy set to boost exports, help MSMEs to tap wider global markets
- IBJ Bureau
- Jul 25, 2026
The government has eased foreign investment rules to allow e-commerce companies to buy products directly from Indian sellers and sell them to overseas customers.
The relaxed norms are a major boost for Amazon, which has lobbied for the change for months.
The move marks a rare relaxation of India’s tightly controlled e-commerce regime, which has long barred foreign online retailers from buying and selling goods directly.
Amazon and Walmart have argued that the restrictions limit their ability to expand, while retailer groups warn that any easing of rules can give foreign firms an unfair advantage.
Seeking to protect millions of small retailers, India has only allowed foreign e-commerce firms to operate as online marketplaces that connect buyers and sellers.
The new norms facilitate e-commerce platforms, including those owned by foreign companies, to buy goods from Indian manufacturers and sellers, hold inventory of products exclusively for exports and ship the products abroad.
The government has said that the change in rules is aimed at boosting exports.
The decision would encourage more entities, especially from the MSME segment, to foray into exports, as the platforms will take the responsibility of exporting their goods, foreign exchange risks and other related issues.
Moreover, the wide reach of the platforms will provide Indian sellers a greater access to the overseas market.
However, the Confederation of All India Traders (CAIT), which represents millions of brick-and-mortar retailers, has argued that the change could be abused by foreign companies and give them more control over supply chains.
Report By
View Reporter News