New framework allows eligible e-commerce entities to undertake export-only inventory operations through registered Exporters-on-Record, opening global markets to Indian manufacturers, traders and MSMEs.
The government has operationalised an inventory-based cross-border e-commerce export framework under the Foreign Trade Policy (FTP) 2023, allowing eligible e-commerce entities to undertake export-only inventory operations through registered Exporters-on-Record (EORs).
The Ministry of Commerce and Industry said the framework has been notified through Notification No. 27/2026-27 and Public Notice No. 25/2026-27, dated August 5, 2026. It lays down the policy and procedures for inventory-based e-commerce exports of goods manufactured or produced in India.
The move follows an amendment to India’s foreign direct investment (FDI) policy through Press Note No. 3 of the 2026 Series, which permits inventory-based e-commerce operations exclusively for exports.
How the new e-commerce export model will work
Under the framework, registered Exporters-on-Record will be allowed to procure goods from Indian Sellers-on-Record against confirmed overseas orders. The EOR will export the products in its own name and assume responsibility for export operations and compliance with regulations in the destination country.
This could significantly reduce the compliance burden for smaller Indian businesses looking to sell overseas. Sellers will be able to delegate export documentation, customs procedures, product testing and certification, packaging, labelling, fulfilment, logistics and reverse logistics to the exporter-on-Record.
More from BusinessThe framework is expected to particularly benefit Indian MSMEs, manufacturers and traders that may have products with global demand but lack the infrastructure or expertise needed to independently handle cross-border e-commerce operations.
Government puts safeguards against inventory misuse
The government has also introduced safeguards to prevent the export-only model from being used to build inventory for India’s domestic e-commerce market.
Export inventory can be procured only against confirmed overseas orders, meaning speculative inventory accumulation will not be permitted. Such inventory will have to be separately identified and digitally recorded and cannot be diverted for sale in the domestic market.
The framework also seeks to protect Indian sellers on the payment front. Sellers must receive payments within the prescribed timeline regardless of when the Exporter-on-Record receives money from the overseas buyer.
Export-related rebates and refunds will also have to be passed on to Sellers-on-Record in proportion to the FOB value of their goods.
Indian sellers will additionally get visibility into the final sale price, order status and shipment tracking of their products, improving transparency in cross-border transactions.
For returned or rejected consignments, the framework requires goods to be re-exported, returned to the seller or disposed of according to prescribed procedures. Annual compliance certification and maintenance of digital records have also been mandated.
The government expects the new framework to increase the participation of Indian manufacturers, traders and MSMEs in global e-commerce supply chains by providing access to organised fulfilment and logistics networks while ensuring regulatory oversight and timely payments.
