India Operationalises New Framework to Boost Ecommerce Exports
The Indian government has launched a new framework enabling e-commerce platforms to export products. The new norms focus on inventory-based e-commerce exports and require registration.
India's government has implemented a new framework aimed at boosting e-commerce exports from the country. The new policy, effective from August 5, allows e-commerce platforms to export products directly from India to international markets using an inventory-based model. This follows the government's earlier exemption of B2B e-commerce exports from foreign direct investment (FDI) rules.
The new regulations, part of the Foreign Trade Policy 2023, mandate registration for e-commerce platforms. The framework details the operational aspects of B2B e-commerce exports, covering registration, inventory management, seller visibility, and reverse logistics. Speculative inventory build-up for export purposes is prohibited; platforms can only procure goods against confirmed export orders. Export inventory must be segregated and maintained in a digital repository for traceability, and cannot be sold domestically.
The framework also introduces the concept of an "exporter-on-record," an entity responsible for managing export inventory, ensuring compliance, and handling the export process. This entity must register with the Directorate General of Foreign Trade (DGFT). Responsibility also lies in ensuring that goods in inventory match seller declarations and meet destination country legal requirements, including packaging and safety warnings.
Furthermore, the new rules provide sellers with visibility into the platforms' consolidated inventory records, including sale price, order status, and shipment tracking. Platforms must also disclose manufacturers and brand owners. The framework includes a dispute resolution mechanism and mandates timely payments to Indian sellers. E-commerce platforms operating under the new regime must obtain an annual compliance certificate and submit it to the DGFT.
These new provisions enable major players like Amazon and Walmart-owned Flipkart to purchase products directly from Indian sellers and sell them to international customers. The objective is to drive India's e-commerce exports to $200-$300 billion by 2030.