Foreign retailers mandated to create separate export entities in India

The Indian government has announced that foreign e-commerce retailers, such as Amazon and Flipkart (owned by Walmart), will be required to establish separate legal entities in the country for exporting Indian goods produced under a warehousing model.

The Directorate General of Foreign Trade (DGFT) published the relevant structure after the Department of Industry last month permitted 100 percent Foreign Direct Investment (FDI) into inventory-based retail e-commerce structures for exporting domestically manufactured goods, via a Note to Press Release No. 3 Series 2026.

Note to Press Release No. 3 pertains to FDI from countries sharing a land border with India.

Requirements for the new export system

Under the new regulation, the e-commerce firm must register this separate legal entity with the DGFT as an Exporter-on-Record (EOR) with an Importer-Exporter Code (IEC) and GST registration. Indian suppliers will be termed Seller-on-Record (SORs) and must have mandatory GST registration, supplying exclusively goods of Indian origin.

An Amazon representative welcomed the change, noting that the policy will provide clarity on exports through the warehousing model, thereby supporting the company's efforts to export $80 billion worth of goods by 2030.

They added that 'this policy clarity strengthens our vision to help Indian enterprises reach global customers. It is important to note that this initiative enables second and third-tier manufacturers to enter the global market and establish the 'Made in India' brand globally. We aim to support India's export ambitions by working towards our cumulative target of $80 billion by 2030—which reflects confidence in India's manufacturing capabilities.'

Under this directive, e-commerce firms can only procure goods after receiving confirmed orders, rather than simply stocking them in anticipation of demand. Exported goods must be stored separately, with digital links to the seller, the overseas order, and export documentation.

Rights and obligations of the EOR

The EOR has the right to claim export benefits and is obligated to share them with sellers. This does not apply to pre-approval benefits and capital goods for export promotion. According to the directive, the EOR will also retain GST reimbursements.

The DGFT specified that the EOR will manage all reverse logistics for returned or rejected batches and under no circumstances can sell or supply these goods to the domestic market, 'whether directly or through any other person or organization.'

The notification states that the e-commerce structure is responsible for maintaining records related to procurement from the domestic seller, inventory status, and linkage to export documentation.

The e-commerce exporter can also utilize the infrastructure of notified E-commerce Export Hubs (ECEH)—designated physical zones to optimize and accelerate cross-border e-commerce trade—for its operations.

Expert opinions

Ajay Srivastava, founder of the Global Trade Research Initiative analytical center, noted that the new policy is generally similar to the existing DGFT export house model, where small firms supply goods to export houses for sale abroad. He added: 'E-commerce firms could already use this scheme, so the change in FDI policy might not have been necessary.'

Spencer Cohen, principal specialist and founder of High Peak Strategy LLC, stated that China's export growth demonstrated how e-commerce platforms can act as powerful channels between small producers and global consumers, providing logistics, market intelligence, payments, and distribution opportunities that individual firms often cannot create independently.

He concluded: 'India is now moving in a similar direction, where it has the potential to overtake China. By enabling the export of 'Made in India' goods under a warehousing model, this reform can help thousands of small and medium-sized manufacturers overcome fixed costs and the complexity of entering foreign markets. This represents an important step toward expanding India's exporter base and transforming the strength of its manufacturing clusters into sustainable global export growth.'

nuz.uzAugust 7, 10:35

Analysis of Sum Exchange Rate Forecasts and Its Impact on Uzbekistan's Economy Until Year-End

The question of the future of the Sum exchange rate until the end of the current year is one of the most discussed topics in Uzbekistan, especially against the backdrop of dollar exchange rate fluctuations. International financial institutions indicate that the economy of Uzbekistan continues to demonstrate high growth rates, and the Central Bank is applying a sufficiently strict monetary policy to control the level of inflation.

According to data from the International Monetary Fund (IMF), it is forecasted that in 2026, the economy of Uzbekistan will increase by approximately 6.8%, and the inflation rate will decrease to 6.8% by the end of the year. Furthermore, the World Bank reported that the country's international reserves reached about $70 billion, with gold accounting for approximately 86% of these reserves.

The value of the dollar depends not only on internal conditions in Uzbekistan; the key factor remains the policy of the US Federal Reserve System. When interest rates in the US are at a high level, the dollar usually strengthens, as investors prefer to place capital in dollar assets. The opposite situation arises if the Fed begins to lower rates, which may reduce interest in American currency.

IMF analysts suggest that the Sum exchange rate will maintain relative stability due to several factors: high remittances, sustainable economic growth, and substantial international reserves. The Central Bank of Uzbekistan maintains the base rate at 14%, which, in its opinion, helps reduce inflation and makes savings in the national currency more attractive. Nevertheless, exchange rate stability does not exclude investment opportunities, as even minor fluctuations in the dollar's value can open interesting prospects in the foreign exchange market.

An example is provided: if an investor started a trade to buy the EUR/USD currency pair in January 2026 at a price of about 1.158 and closed it in early February at a price of 1.202, the return would be almost 3.8%. With an investment of $1000 using a moderate multiplier of x10, the potential profit could be around 38%.

Several factors currently affect the US currency exchange rate. On the one hand, there is a gradual slowdown in the US economy, and financial market participants are closely monitoring the decisions of the Federal Reserve System regarding interest rates. On the other hand, persistent geopolitical uncertainty traditionally supports demand for the dollar as one of the leading global reserve currencies.

For Uzbekistan, significant foreign exchange reserves, a favorable situation in the gold and metals market, and a high inflow of remittances serve as additional support for stability. In light of these circumstances, the foreign exchange market may remain quite volatile until the end of the year, providing investors with the opportunity to earn profits from both currency exchange and currency quote movements.

Access to the global financial market is provided by registering on the Forex Club website, topping up a trading account, and choosing an interested currency pair, such as EUR/USD, GBP/USD, USD/JPY, or other popular instruments. An investor can open a trade calculated for the growth of the US currency if they expect it to strengthen, or open a trade for a decline in the rate if they predict weakening.

The Forex Club platform provides technical analysis tools, an economic calendar, and a constantly updated feed of financial news to help choose the optimal time to enter the market. For beginners, a free demo account with a virtual balance of $50,000 is available, allowing them to test various trading strategies without risk to personal funds before moving on to real trading.

www.aajtak.inAugust 7, 10:06

Gold and silver prices sharply rose over four days amid geopolitical tensions

The rise in gold and silver prices has halted its downward trend, as both metals have shown significant growth over the past four days. Specifically, the price of silver increased by more than 12,000 rupees, and the cost of gold also rose substantially. This surge in prices is occurring against a backdrop of escalating global tensions.

On the MCX exchange on Friday, gold prices rose by 1,000 rupees, reaching the mark of 149,900 rupees for 10 grams. Simultaneously, silver prices in the commodity market increased by approximately 3,500 rupees, approaching 229,500 rupees per kilogram.

Comparing the data recorded on August 3rd on MCX, when the price of gold was around 1.43 lakh rupees and silver around 2.17 lakh rupees, it is evident that over four days, the price of gold jumped by 7,000 rupees, and silver increased by more than 12,000 rupees.

There is also an increase observed in ETF markets: Gold ETF showed a gain of between 3 and 4 percent, while Silver ETF rose by 4 to 5 percent.

The main factors contributing to the price increase are the growing tensions between the US and Iran regarding the Strait of Hormuz. Iran has stated that it will not allow American ships through this strait. Furthermore, there is an increase in crude oil prices, and an expected rise in US employment data. These factors have led to the weakening of the US dollar, which has triggered a rise in the prices of safe-haven assets such as gold and silver.

Previously, in January, gold and silver experienced a significant price jump. Gold reached levels above 1.93 lakh rupees, and silver rose to 4.20 lakh rupees. Currently, gold remains cheaper by 43 thousand rupees, and silver by 1.91 lakh rupees.