New Delhi, Aug. 31 -- India wants its over 90 million registered MSMEs to export more through e-commerce, and to that end, has opened the inventory-based e-commerce export model to foreign investment. The move comes as India seeks to widen its exporter base and make it easier for smaller manufacturers to access global markets. Can opening this route to foreign investment take more of India's small manufacturers global?

India has historically allowed 100% foreign investment in marketplace e-commerce, where platforms connect buyers and sellers, but restricted foreign-funded inventory-based e-commerce. Earlier this year, the government created an export-only exception, allowing foreign-funded e-commerce entities to own inventory of goods ma...