India, July 24 -- The Government on Thursday permitted FDI in an inventory-based model of e-commerce "exclusively" for export purposes, a move which will help increase India's outbound shipments without impacting the businesses of small retailers.

"In order to facilitate greater exports through easier and increased access of global markets by Indian sellers, the extant FDI Policy has been reviewed and it is decided that the restrictions on inventory-based model of e-commerce shall not apply in case of exports of domestically manufactured and/or produced goods/products," the Department for Promotion of Industry and Internal Trade (DPIIT) said in a Press Note.

As per the consolidated FDI (foreign direct investment), FDI is permitted in Bu...