FDI in Inventory-Based E-Commerce for Exports: What Press Note 3 of 2026 Changed for Sellers

On 23 July 2026 the government issued Press Note No. 3 of 2026, which lets an e-commerce entity with foreign investment run an inventory-based model solely to export goods manufactured or produced in India. It adds a new paragraph, 5.2.15.2.5, to India's FDI policy. Domestic retail sales are not covered. As of November 2026, several practical details, including how "made in India" is checked, are not clear from the reporting I could open. This page says what changed, who it affects and what to do.

What did Press Note 3 of 2026 change?

Before this change, India's FDI policy barred foreign-owned e-commerce companies from holding inventory for sale to consumers. They could run a marketplace but not own the stock. The Press Note carves out one case. A commentary on it says the new paragraph:

• permits an e-commerce entity to run an inventory model "solely for the export of goods/products manufactured and/or produced in India"
• allows entities with FDI to procure, own, warehouse and export those goods directly to overseas customers
• says the existing restrictions on business-to-consumer and inventory-based e-commerce do not apply to these export transactions

The commentary was published on 24 August 2026. The Press Note is dated 23 July 2026.

Who does it affect?

The relaxation is aimed at e-commerce entities that have foreign investment. If you are an Indian seller on Amazon, Flipkart or your own store, the Press Note does not change your obligations. It could change who you sell to. A foreign-invested export company could, in principle, buy Indian-made goods from you and ship them abroad under its own name, instead of you listing as a seller on a marketplace. Whether that happens, and on what terms, depends on how companies use the new room. Nothing in the material I opened names a company that has started doing this.

What conditions apply?

According to the commentary, exports must comply with the Foreign Trade Policy 2023, its Handbook of Procedures and the foreign exchange laws that govern exports. DGFT, India's trade regulator, hosts the Foreign Trade Policy documents and an E-Commerce Exports Handbook for MSMEs in its learning section. Domestic retail sales are outside the relaxation.

What is not clear yet?

The commentary points to several open questions. I list them so you do not assume answers:

The 2018 rule matters because Press Note 2 of 2018 treats a vendor's inventory as controlled by a marketplace entity when more than 25% of the vendor's purchases come from that entity or its group companies. The commentary does not say whether that 25% test applies to the new carve-out. Do not assume it does or does not.

Why does the government want this?

Amazon, in its October 2025 announcement of its export milestone, cites the Government of India's goal of US$200 to 300 billion in ecommerce exports by 2030. The same release says Amazon's own aim is US$80 billion in cumulative exports from Indian sellers by 2030. The Press Note fits that direction, though the commentary I read does not state the government's reasons. Treat the link as context, not as the official rationale.

Does it change how I export today?

Not by itself. The routes open to a seller are the same as before: a marketplace export programme, your own website, or selling to an exporter. See Amazon vs own site vs other marketplaces for export for the comparison. What the Press Note may add over time is a fourth route: supplying a foreign-invested exporter that buys inventory from you.

If you are thinking about that, consider these points:

1. Payment terms. A buyer that owns inventory pays you for stock. That is a B2B sale with its own invoice, GST treatment and credit risk.
2. Brand control. The buyer decides pricing and presentation abroad unless your contract says otherwise.
3. Brand protection. Check who owns the listing and who can file complaints. Amazon's Brand Registry in India is covered in our Brand Registry guide.
4. Paperwork. The exporter handles customs, but ask for proof of export if your GST position depends on it. This is a point for your chartered accountant.

How is this different from the marketplace export route?

In the marketplace route you stay the seller. On Amazon Global Selling, for example, you list your own products, choose how to fulfil them (ship yourself, use Fulfillment by Amazon, or use the SEND service) and proceeds can be credited to your bank account in INR or in international currency. Amazon's page also says the export documents you need depend on product category, origin and destination.

In the inventory route that the Press Note opens, the exporter buys and owns the goods. That is a different business: you sell stock once, invoice a company, and the company takes the overseas customer risk. The first suits brands that want control of the listing and the customer experience. The second suits manufacturers that want volume and faster cash and are happy to let another party own the shopper relationship. Neither is better in general. It depends on your margin, your brand and how much working capital you can lock up in stock abroad.

What should a manufacturer ask a foreign-invested exporter?

If an exporter approaches you with an offer to buy your goods for overseas sale, ask these questions before agreeing:

• Which Indian entity buys the goods, and what does it say about its FDI approval status under the 2026 Press Note?
• Is the order a one-off or a repeat contract, with minimum volumes?
• Who is the seller of record on the overseas marketplace or site, and who owns the product listing?
• What are the payment terms in days, and what happens if goods are returned from abroad?
• Does the exporter give you proof of export for your GST and accounting records?
• Can you still sell the same goods through your own channels, or does the contract limit you?

Get the answers in the contract, not on a call. A chartered accountant should check GST on the invoice and any export proof you need.

What should an Indian seller do now?

1. Do nothing drastic. No platform has told sellers to change anything because of this Press Note, as far as the material I opened shows.
2. Read the Press Note. Find it on the DPIIT website (the department that issues FDI press notes) and read paragraph 5.2.15.2.5 yourself. I could not open the government PDF directly while writing.
3. Fix your export basics first. IEC, GST export treatment and a clear shipping route matter more than FDI policy for a seller exporting from India. See the Dubai export guide for a worked corridor.
4. Watch for platform notices. If a marketplace or exporter approaches you with a new inventory-buying offer, ask what Press Note rules they rely on and get terms in writing.

FAQ

What is Press Note 3 of 2026? It is a government FDI policy notice dated 23 July 2026. It adds paragraph 5.2.15.2.5, which lets e-commerce entities with foreign investment hold inventory solely to export goods made or produced in India.

Can foreign-owned e-commerce companies now sell to Indian customers from their own inventory? No. According to the commentary I read, domestic retail sales are not covered, and the restrictions on inventory-based e-commerce still apply to them. The carve-out is for exports only.

Does this apply to me as an Indian seller on Amazon or Flipkart? It does not change your obligations as a seller. It affects entities with FDI that want to own stock for export. You are not required to do anything because of it.

Is there a minimum export percentage? The commentary does not state one. A 25% figure appears in the older 2018 Press Note on vendor control, but the commentary does not say it applies here. Check the Press Note text.

Where can I read the Press Note? Departments such as DPIIT publish FDI press notes on their websites. I could not open the official PDF during research, so I rely on a law-firm commentary. Read the official text for the exact wording.

Does an exporter still need an IEC and follow foreign exchange rules? The commentary says exports must comply with Foreign Trade Policy 2023, the Handbook of Procedures and foreign exchange laws. Confirm what that means for your shipments with DGFT guidance or a customs broker.

Next step

If you are a brand weighing an export test, Blooprint's Amazon account management team can look at your catalogue and help you plan a first overseas listing. Before any change of structure, get a lawyer's view on the Press Note.