India, Nov. 3 -- The commerce and industry ministry has reportedly circulated a note on allowing foreign direct investment (FDI) in inventory-based ecommerce models, solely for exports.

Citing a government official, PTI reported that the proposal is aimed at boosting India's exports without denting small retailers and businesses. The ministry has sought views and comments on the note from stakeholders.

The proposal has been circulated by the Directorate General of Foreign Trade (DGFT) and is being examined by the Department for Promotion of Industry and Internal Trade (DPIIT).

Currently, India prohibits 100% FDI in inventory-led ecommerce but is allowed in ecommerce platforms which are operating as marketplaces.

Under an inventory-bas...