The government may allow FDI in inventory-led ecommerce for exports, but limiting it this way ignores how integrated the ecommerce supply chain has become
Restricting FDI to exports preserves an outdated divide between domestic and global retail, out of step with India’s evolving digital marketplace
Rules meant to shield small traders once made sense, but India’s ecommerce ecosystem has matured beyond the early fears of deep discounting
Policy focus must shift from who owns inventory to how the market operates, ensuring transparency, fair competition, and equal access for sellers
Allowing FDI in inventory-led models can boost logistics, warehousing, and exports while connecting small producers to larger markets
With stronger oversight, India can protect traders and modernise retail. It’s time to extend FDI liberalisation to both online and offline retail sectors