A proposal to allow FDI in an inventory-based model of e-commerce only for export purposes is under examination as it will help increase India's outbound shipments without impacting the businesses of small retailers, Commerce and Industry Minister Piyush Goyal said.

At present, the country's FDI policy does not permit foreign direct investment (FDI) in the inventory-based model of e-commerce. It is allowed only in firms that are operating through a marketplace model.

"I liked that proposal, the department is examining it," Goyal told PTI.

The minister said that if such e-commerce firms want to keep inventory for exports, then "I think we have no objection to that".

When asked if the ministry will tweak the policy for that, he said: "We may need to issue a clarification" in this regard.

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