Currently, online sale by a single-brand retail player is allowed only after opening of physical outlet.
Relaxations are expected in a provision where foreign retail traders are presently allowed to adjust procurement of goods from India for their global operations for meeting the mandatory local sourcing requirement.
However, this is allowed only for five years and "incremental" sourcing of goods from India is only taken into account presently.
"Amendments and easing are also likely in this provision," the sources said.
The move comes in the backdrop of announcements made by the government in the Budget.
Finance Minister Nirmala Sitharaman in her Budget speech had said that local sourcing norms will be eased for FDI in single brand retail sector.