BS EDIT: Unnecessary Division

By Business StandardPublished On Jul 28, 2026

A Positive First Step

Allowing FDI in inventory-based ecommerce for exports is a welcome reform

It can strengthen exports and help Indian manufacturers, particularly MSMEs, access global markets more efficiently

Reform Falls Short

The change applies only to exports. Restricting inventory-based ecommerce in the domestic market preserves a fragmented policy framework instead of creating a level playing field

Complex Rules, Higher Costs

Different rules for exports and domestic sales force companies to maintain separate warehouses and supply chains, increasing costs and operational complexity

Competition Needs Clarity

Current regulations distinguish between marketplace and inventory models for foreign firms

Such divisions complicate business and discourage investment without ensuring fair competition

A Sector Ready to Expand

India's ecommerce market is projected to reach around $250 billion by 2030. Sustaining this growth requires simpler regulations that support innovation and ease of doing business

The Way Forward

A modern ecommerce policy should establish clear, uniform rules, reduce regulatory overlap, and foster investment, competition, and growth