Commerce Ministry Exempts Exports From FDI Restrictions

After years of industry lobbying, the commerce ministry has now relaxed foreign direct investment (FDI) rules to enable online marketplaces to export products from India. In a press circular dated July 23, the commerce ministry noted that FDI is now permitted in B2B ecommerce and marketplaces models. It also clarified that foreign direct investments are still now allowed for B2C and inventory-based ecommerce platforms.