Quick Take
- DGFT notified the inventory-based E-Commerce Export Framework on August 5, 2026, under FTP 2023.
- Foreign-funded platforms can now own India-made stock, but only for export, through registered EORs.
- Indian sellers get timely payments, export incentive pass-through and full order visibility.
In This Article
The government has operationalised the inventory-based E-Commerce Export Framework under the Foreign Trade Policy (FTP) 2023 on August 5, 2026, letting foreign-funded platforms own India-made goods purely for export.
The Directorate General of Foreign Trade (DGFT) issued the rules through Notification No. 27/2026-27 and Public Notice No. 25/2026-27, both dated August 5, 2026. The framework follows the FDI policy change under DPIIT’s Press Note 3 (2026 Series), which opened inventory-based e-commerce to foreign capital for exports only.
StartupFeed Insight
The real signal here is control, not just access. By forcing every export through a registered Exporter-on-Record with digital traceability and a payment guarantee, the government hands scale to large platforms while ring-fencing the small seller from non-payment. Amazon and Flipkart-owned sellers will move first, because they already have the fulfilment muscle. Watch for the first batch of EOR registrations on the DGFT portal within 60 days, and expect at least one large marketplace to publicly announce an India export target before the end of 2026. StartupFeed expects MSME clusters in tier-2 cities to see the first real order flow by Q1 2027. By Harshvardhan Jain.
E-Commerce Export Framework: Key Facts
The E-Commerce Export Framework is a set of DGFT rules that lets foreign-funded e-commerce entities hold and export inventory of Indian-made goods, without touching the domestic retail ban. It sits inside FTP 2023 and amends the Handbook of Procedures (HBP) 2023.
| Metric | Detail | Notes |
|---|---|---|
| Notification | No. 27/2026-27 | Dated August 5, 2026 (PIB) |
| Public Notice | No. 25/2026-27 | Amends HBP 2023 |
| Registration Form | Aayaat Niryaat Form (ANF) 9A | Filed with DGFT |
| Key Roles | Exporter-on-Record (EOR), Seller-on-Record (SOR) | EOR exports in own name |
| Enabling Policy | DPIIT Press Note 3 (2026 Series) | Dated July 23, 2026 |
| Effective Date | August 5, 2026 | Immediate effect (DGFT) |
The most important line in the notification is the export-only lock. Inventory can be procured only against confirmed overseas orders, and it cannot be diverted into the domestic market, as stated by the Ministry of Commerce and Industry.
About the Framework
The E-Commerce Export Framework was notified by the DGFT, the trade regulator under the Ministry of Commerce and Industry, headed by Union Minister Piyush Goyal. It builds on FTP 2023 (effective April 1, 2023) and the DPIIT FDI reform of July 2026. The model targets Indian manufacturers, artisans and MSMEs seeking global buyers, with large marketplaces like Amazon and Flipkart as the main fulfilment partners. It supports the government aim of $200 Bn (Rs 19,04,000 Cr) in e-commerce exports by 2030, at Rs 95.2 per USD.
How does the export model work?
The model runs entirely through a registered Exporter-on-Record, who becomes the legal exporter for every transaction. The EOR buys goods from an Indian Seller-on-Record against a confirmed overseas order, then exports in its own name.
According to the framework, the flow has five clear stages. An overseas buyer orders through an eligible platform. The EOR receives the confirmed order and procures goods from the SOR. It then tags the goods as export inventory in a digital repository. The EOR completes customs clearance, documentation and shipping. Finally, it pays the seller, passes on export incentives and manages any returns.
Registration is not a one-time task. The EOR must obtain an annual compliance certificate from an eligible professional and keep operational records for 5 years, even after the registration is cancelled, according to the DGFT public notice.
How does it protect Indian sellers?
The framework protects Indian sellers by guaranteeing payment, incentive pass-through and transaction visibility. Payment to the Seller-on-Record must be made within the prescribed timeline, even if the overseas buyer has not yet paid, as stated by the Ministry of Commerce and Industry.
The framework enables such exports while safeguarding the interests of Indian sellers, the Ministry of Commerce and Industry said in its August 5, 2026 statement.
Export rebates and refunds must be apportioned and passed through to sellers in proportion to the FOB (Free on Board) value of their goods. Sellers also get digital visibility of final sale price, order status and shipment tracking. Speculative stock build-up is banned, and rejected consignments must be re-exported, returned or disposed of under set rules.
Who benefits from this policy?
The clearest winners are large FDI-backed platforms and the MSMEs that plug into their networks. Amazon and Walmart-owned Flipkart lobbied for this opening for years, and both run the fulfilment and logistics scale that inventory-based export demands.
| Stakeholder | What Changes |
|---|---|
| FDI-backed platforms | Can own India-made export stock for the first time |
| MSMEs and artisans | Access global buyers without handling customs or logistics |
| Domestic B2C retail | No change, inventory-based FDI stays banned here |
What sets this apart from earlier courier-export tweaks is scale: it lets platforms warehouse and ship at volume, not just parcel by parcel, which is why global giants pushed for it.
What’s Next
The first test is uptake. Watch the DGFT portal for early EOR registrations via ANF 9A, and for the first big marketplace to announce a hard India export number. The government wants e-commerce exports at $200 Bn (Rs 19,04,000 Cr) by 2030, a mark India currently misses by a wide gap. Will tier-2 manufacturers get real order flow, or will the benefit pool at the top?
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