<h1>FDI policy for e commerce restricts inventory models, mandates marketplace compliance reporting and prohibits control over vendor inventory.</h1> The note explains that 100% FDI under the automatic route is permitted only for marketplace models while FDI is barred for inventory based e commerce; marketplace entities must not control vendor inventory or influence sale prices, must disclose seller details, and must furnish an annual statutory auditor's report confirming compliance. Tax measures summarised include concessional tax options for domestic companies, a distinct Equalisation Levy on certain nonresident digital services, and multiple startup incentives such as income tax exemptions, capital gains relief for investments into startups, relaxation of loss carry forward restrictions, and relief from deeming of income on share premium subject to declaration requirements.