India has revised its foreign investment guidelines for e-commerce, aiming to support small producers, artisans, and farmers, while balancing protection against foreign market dominance, as announced by Commerce Minister Piyush Goyal.
India has tightened and widened its foreign investment rules for e-commerce in a move that Commerce and Industry Minister Piyush Goyal said is designed to help small businesses reach more buyers while supporting artisans, farmers and fishermen. Speaking after the BRICS Trade and Industry Ministers’ Meeting in Jaipur, Goyal said the revised framework would make it easier to sell products such as handlooms, handicrafts, textiles, footwear and food items online.
The changes are being presented as a way to expand market access without undermining smaller sellers. According to the Economic Times report, the minister said the policy shift would help producers of everyday goods connect with larger customer bases through digital channels, including those that buy food products and other household items online.
The announcement comes after a longer period of scrutiny over how foreign-backed e-commerce groups operate in India. In recent years, Goyal has argued that online retailers must comply with the country’s foreign direct investment rules, while the government has been reviewing complaints from consumers and small traders about alleged breaches by major platforms. Business Standard reported that officials have also considered clarifications to ensure the sector operates in the “true spirit” of the law.
At the same time, the government is examining whether inventory-based e-commerce should be opened up for exports only, a proposal reported by Moneycontrol as a way to support outbound shipments without affecting domestic retailers. Together, the measures suggest New Delhi is trying to balance its push for digital trade with its longstanding concern that foreign capital should not distort competition in India’s retail market.
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