New Delhi: The Central Government has operationalised the Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy (FTP), 2023, creating a structured mechanism to help Indian manufacturers, artisans and MSMEs expand their presence in global e-commerce markets.
The framework was notified through Notification No. 27/2026-27 and Public Notice No. 25/2026-27, both issued on August 5, 2026.
Export-Only Inventory Model Introduced
The framework allows eligible e-commerce entities to undertake export-only inventory operations through a registered Exporter-on-Record (EOR).
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The EOR will procure goods from Indian Sellers-on-Record (SORs) against confirmed overseas orders, export them in its own name and handle customs procedures, destination-country regulations, logistics, product certification and export compliance.
Greater Support for MSMEs and Manufacturers
The government said the framework is designed to reduce compliance burdens on Indian manufacturers, artisans and MSMEs by allowing them to focus on production and innovation while expanding into overseas markets.
It also ensures timely payments to sellers, visibility into overseas sales, shipment tracking and proportional transfer of export rebates and refunds.
Safeguards to Ensure Transparency
The policy incorporates several safeguards to prevent misuse and strengthen regulatory oversight.
Key safeguards include:
- Export inventory only against confirmed overseas orders.
- No speculative inventory build-up.
- Separate digital records for complete traceability.
- No diversion of export inventory into the domestic market.
- Annual compliance certification.
Boosting India’s Global E-Commerce Presence
According to the government, the framework is expected to increase the participation of Indian manufacturers, traders and MSMEs in global e-commerce supply chains while ensuring transparency, accountability and effective regulatory oversight.
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