New Delhi, Sept. 18 -- India is considering a pilot project to allow foreign-funded e-commerce companies to buy goods from local vendors, stock them, and sell to consumers abroad, in a shift away from the current rules that permit these firms to operate only as a marketplace, connecting buyers and sellers.

The plan is likely to be launched first with the UK-India's new free trade agreement partner. Under the proposal, foreign-funded e-commerce companies can directly buy goods in India and export them to the UK, bypassing the current marketplace-only restriction, two people aware of the matter said.

The government's move to allow inventory-based business model for e-commerce firms is aimed at boosting foreign direct investment (FDI)-Indi...