The government on Wednesday operationalised inventory-based e-commerce exclusively for exports, requiring interested firms to conduct business through a registered entity as an exporter-on-record (EOR), which can procure goods domestically only against confirmed overseas orders.
“The EOR procures goods from Indian Sellers-on-Record (SORs) against confirmed overseas orders, undertakes exports in its own name, and assumes responsibility for export operations as well as compliance with destination-country requirements,” the Ministry of Commerce and Industry said in a statement issued on July 23.
The development is in line with the Foreign Trade Policy (FTP), unveiled on March 31, 2023, which identifies e-commerce as a focus area for amplifying India’s exports. “The rapid growth of cross-border e-commerce presents a significant opportunity for Indian manufacturers, artisans and MSMEs (micro, small and medium enterprises) to access global markets,” it said.
Following the amendment to the foreign direct investment (FDI) policy through Press Note No. 3 (2026 Series), which permits inventory-based e-commerce operations exclusively for exports, the government has now operationalised the corresponding regulatory framework under the FTP, it added.
Operationalising the framework for inventory-based cross-border e-commerce on August 5, 2026, the ministry said it provides a comprehensive policy and procedural architecture for facilitating inventory-based cross-border e-commerce exports of goods manufactured or produced in India. “The framework enables such exports while safeguarding the interests of Indian sellers,” it added.
By leveraging a registered EOR, Indian sellers can access overseas markets while delegating export documentation, customs formalities, destination-country regulatory compliance, product testing and certification, packaging, labelling, fulfilment, logistics and reverse logistics to the entity, it said.
The framework also ensures timely payment to sellers, transparency in overseas sales and clear accountability for export compliance, thereby reducing compliance costs and enabling Indian enterprises to focus on production and innovation while expanding their global market access, it added.
The framework incorporates several safeguards to ensure that the benefits of e-commerce exports accrue to Indian manufacturers and MSMEs while maintaining regulatory oversight, it said.
“Export inventory may be procured only against confirmed export orders, and speculative inventory build-up for export purposes is not permitted. The export inventory must be distinctly identified, segregated and maintained through a digital repository to ensure complete traceability,” it said. Further, export inventory cannot be diverted for sale in the domestic market, it added.
The framework also provides for timely payments to Indian sellers within the prescribed timeline, irrespective of the receipt of payment from overseas buyers. Export rebates and refunds are required to be apportioned and passed through to the SORs in proportion to the value attributable to their goods. In addition, sellers are provided visibility regarding the final sale price, order status and shipment tracking of their products, it said.
Returned or rejected consignments must be re-exported, returned to the seller or disposed of in accordance with the prescribed procedures, the ministry said. To further strengthen transparency and enforcement, the framework mandates annual compliance certification and maintenance of digital records, it added.