The Government of India has introduced a new framework to make it easier for Indian businesses to sell their products through international e-commerce platforms.
The new Inventory-based Cross-border E-Commerce Export Framework has been introduced under the Foreign Trade Policy (FTP), 2023.
The framework was officially operationalised on August 5, 2026, through Notification No. 27/2026-27 and Public Notice No. 25/2026-27.
The move is expected to help Indian manufacturers, artisans and MSMEs reach customers in overseas markets without having to handle every complicated step of the export process themselves.
How Will the New Export System Work?
The framework introduces the concept of an Exporter-on-Record (EOR).
Under this system, eligible e-commerce companies can carry out export-only inventory operations through a registered EOR.
The EOR will purchase products from Indian Sellers-on-Record (SORs) after receiving confirmed orders from customers in overseas markets.
The goods will then be exported in the EOR’s name.
The EOR will also take responsibility for export-related procedures and compliance with the rules of the destination country.
This means Indian sellers can focus more on making and supplying their products while the EOR handles much of the international export process.
Export Paperwork and Logistics Made Easier
International exports can involve several complicated steps.
Under the new framework, the EOR can handle tasks such as:
Export documentation
Customs procedures
Product testing and certification
Packaging and labelling
Overseas regulatory compliance
Order fulfilment
Logistics and shipping
Reverse logistics for returned products
The system is also designed to provide Indian sellers with timely payments and greater visibility into their overseas sales.
Sellers can track information such as the final sale price, order status and shipment details.
Government Puts Strict Checks on Export Inventory
The government has also introduced safeguards to prevent misuse of the system.
Export inventory can only be purchased against confirmed overseas orders.
This means businesses cannot simply stock large quantities of products in the hope of selling them abroad later.
The export goods must also be separately identified and kept apart from other inventory.
Details of the inventory will be maintained digitally so that the goods can be tracked.
One important rule is that products marked as export inventory cannot be diverted for sale in the Indian domestic market.
Big Opportunity for Indian MSMEs and Manufacturers
The new framework could be particularly useful for MSMEs, manufacturers and artisans looking to enter international markets.
Instead of managing every part of an export operation themselves, sellers can use organised e-commerce fulfilment networks and focus on production.
The framework also provides greater transparency for sellers.
They will be able to get information about their products’ overseas sales, orders and shipments.
Any eligible export rebates and refunds will also have to be passed on to sellers proportionately based on the FOB value of their products.
What Happens to Returned Products?
International orders can sometimes be rejected or returned.
Under the new framework, returned or rejected shipments must be handled according to prescribed procedures.
They can either be re-exported, returned to the original seller or disposed of as permitted under the rules.
This is intended to ensure that export inventory does not enter the Indian market outside the permitted process.
Digital Records and Annual Compliance
The new system will also rely heavily on digital record-keeping.
Entities operating under the framework will have to maintain proper digital records and complete annual compliance certification.
The government’s broader aim is to reduce the cost and complexity of exporting while keeping proper regulatory checks in place.
For Indian businesses, especially smaller manufacturers and MSMEs, the framework could make participation in global e-commerce supply chains easier.
In simple terms, sellers can focus on making and selling products, while registered export entities take care of much of the paperwork, customs, logistics and overseas compliance.
