Handicraft, ODOP items to get major exports boost from FDI in inventory-based e-comm: Official

New Delhi: The decision to permit FDI in an inventory-based e-commerce model only for export purposes will give a major boost to the shipments of handicrafts and ODOP goods, an official said.

One District One Product (ODOP) is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) for promotion of at least one product from each district of the country.

As of date, 1,244 products have been identified across 773 districts in the country under the ODOP framework.


"Goods made by MSMEs and handicraft artisans will now get huge opportunities to access global markets through this easing of the FDI norms," the official said, adding extensive consultations have been done to finalise the changes.

On July 23, 2026, the government amended the Foreign Direct Investment (FDI) policy and stated that the restrictions on the inventory-based model of e-commerce will not apply in case of exports of domestically manufactured products.

The move is aimed at facilitating greater exports through easier and increased access of global markets by Indian sellers.

This means that e-commerce firms with foreign stakes can now maintain inventory only for export purposes. Earlier, the policy did not explicitly specify this.

DPIIT, an arm of the commerce and industry ministry, deals with foreign direct investment (FDI) related issues.

The decision will come into effect from the date of FEMA (Foreign Exchange Management Act) notification.

The proposal was initially mooted by the Directorate General of Foreign Trade (DGFT) to boost India's exports through e-commerce. E-commerce stakeholders, too, have demanded the same.

The directorate will come out with detailed guidelines on this decision.

The move is important as the government is looking at ways to boost exports through the e-commerce medium.

It is working on other measures as well, such as setting up e-commerce export hubs.

As per estimates, the country's e-commerce exports are about USD 2 billion currently compared to China's staggering USD 350 billion.

The global e-commerce trade is about USD 800 billion and is estimated to reach USD 2 trillion by 2030.