The plan is likely to be launched first at the UK – Indian new free trade partner. According to the proposal, companies with electronic trading financed abroad can directly buy goods in India and export them to the UK, which bypasses the current restrictions only on the market, said two people who knew about this matter.
The government step, which allows a business model based on electronic trading companies, is aimed at strengthening direct foreign investments (FDI) -India expects to reach $ 100 billion in FY26-A in FY26, they said.
Gujarat proved to be a preferred state that hosted a pilot project that would allow companies to own electronic trading and sell products directly to consumers in the UK, instead of acting only as an online marketplace, the first cited person said.
Indian FDI rules currently do not allow electronic trading companies to work in an inventory -based model. They can only act as a neutral platform for a digital marketplace. The same limitations apply to exports – can be facilitated by third -party dealers, not in themselves. However, a fully Indian electronic trading company can own reserves and sell goods to local and abroad.
After the pilot project, this model based on the inventory can be introduced for other 14 FTA partners with whom India has signed agreements, the person said. The initiative is in line with the fact that Indian pressure is to double your exports with FTA partners and increase the flow of direct foreign investments.
As part of the proposed model based on the inventory, reserved export entities would hold shares, manage customs clearance and process a package on behalf of small businesses.
“The problem was discussed at a recent session in the Ministry of Trade with key stakeholders, including Swadeshi Jagran Manch and representatives of domestic retailers. The leaders of the leading players of electronic trading also participated,” the other person said.
“Although domestic groups have aroused fears that the products deposited in stocks can be diverted to the local market instead of being sold abroad, the government ordered the CEO to the foreign trade (DGFT) to run a pilot project,” the other person said.
“The pilot will help evaluate its effectiveness and once the domestic parties are convinced, the inventory model will be introduced for electronic trading players,” the person said.
Questions sent to business ministries, external matters and the British embassy in Nový Delhi remained unanswered.
Development comes against the background of the ongoing India-USA interviews on the completion of a bilateral trade agreement (BTA) to November. The interviews between the two nations continued on 16 September after a break for more than a month because of India, which attracted its red lines to agriculture, dairy products and genetically modified crops. The US has imposed 50% tariff in India – the highest so far – which includes 25% mutual tariff and 25% fine for buying Russian oil.
“In small and medium exporters, this could reduce the dependence on intermediaries and facilitate consumers’ addressing on markets such as the United Kingdom. At the same time, it is important that warranties are introduced to ensure that the model remains on export and does not affect domestic retailers,”
India and the United Kingdom signed an agreement on free trade Milestmate 24 July, ended the years of negotiations and described a new phase in their economic partnership. The agreement will be great pressure on bilateral trade and investment and offers greater access to the market across key sectors.
FTA – formally known as a comprehensive economic and business agreement – looking for an increase in two -sided trade to $ 120 billion by removing or significantly reducing the cells on a wide range of products.
Indian exports of goods to the UK increased by 12.6% to $ 14.5 billion in the years 2024-25, while imports grew slightly by 2.3% to $ 8.6 billion. The total bilateral trade was $ 21.34 billion in 2023-24, from $ 20.36 billion in the previous year.
“Allowing The Inventory Model for E-Commerce, Specifically for Exports, Can Be and Game-Changer for Indian Brands. Today, Demand for Indian Products is Growing Across Globals Scale The Inventory model Will Enable Companies to Stock Products Closer to the Point of Demand, Ensuring Faster Delivery, Better Customer Experience, and Greater Competitiveness Against Global Peers, “Ravi Saxen, CEO and founder of Wonderchef, said. “For consumer brands like Wonderchef, this would open up significant opportunities to serve international customers, spread to new geographies and build stronger capital abroad. Even more importantly, India can help move the value chain in global trade and build us as a reliable source of high quality products.”
Previously, Mint 13th March reported that US trade negotiators were promoting an electronic -based field -based field, such as Amazon and Walmart, Flipkart against Indian companies such as Reliance, Tata and others.
Mint also previously informed on February 13 that India proposed comprehensive policy of electronic trading, which attracted the significant interest of global players such as Amazon and Walmart, was suspended because the country reassessed its priorities after a major change in the US regime.
According to the Invest India report, the Electronic Trading market in the country will be set to $ 325 billion and by 2030 the digital economy to $ 800 billion.
India with 881 million Internet users is the second largest online market in the world. Its growing digital economy could make it the third largest retail market by 2030, according to the Invest India report.
The global electronic trading market was awarded approximately $ 26.8 trillion in 2024, and by 2033 it is assumed that, according to Mordor Intelligence, it will increase to $ 214.5 trillion.
From now on, India has 15 partners with whom he has free trade agreements (FTA). In response to Lok Sabha on 18 March, Minister of Union of Commerce Jitin Prasada said India had signed 14 FTA with her business partners.
The store with these partners aggregated to approximately $ 118 billion in FY25. In FY24, India’s total exports to 14 FTA partners were $ 122.75 billion.
(Tagstotranslate) Direct foreign investment
