New Delhi, Nov. 3 -- The Commerce and Industry Ministry has circulated a consultation note to central government departments on a proposal to permit foreign direct investment (FDI) in the inventory-based model of e-commerce exclusively for export-oriented operations, an official said.

The move aims to support India's export ambitions while safeguarding the interests of domestic retailers.

Currently, FDI is not allowed in entities operating on an inventory-based e-commerce model, where the platform owns the goods it sells.

Instead, 100 percent FDI under the automatic route is permitted only in marketplace-based e-commerce platforms that act as facilitators between buyers and sellers.

The proposal under review would allow inventory-base...