A Targeted Collaboration On Exports
India’s government has partnered with Alibaba.com on an export-focused program aimed at helping startups and small businesses reach overseas buyers, highlighting a selective form of engagement with a Chinese-linked platform years after New Delhi imposed broad bans on consumer apps and games. This week, the Startup India initiative announced the collaboration to identify and support Indian startups that can help onboard and scale exporters on Alibaba.com’s global B2B platform, offering commissions and technical support to assist small manufacturers and traders in reaching foreign markets.
Context Of India China Tech Relations
The partnership comes after years of strained relations between India and China. In 2020, New Delhi banned dozens of Chinese-linked apps following a deadly border clash, including TikTok, PUBG Mobile, and AliExpress, the Alibaba Group operated consumer app. Those restrictions remain in place, which frames the new arrangement as a limited, export-focused engagement rather than a broader change in policy toward Chinese consumer technology platforms.
Why Exports And Small Businesses Matter
India’s export strategy relies heavily on smaller firms. Micro, small, and medium enterprises account for nearly half of the country’s exports and about 31% of GDP, according to the government’s latest Economic Survey. That share explains the focus on expanding digital access to overseas markets through global B2B channels such as Alibaba.com.
Alibaba.com’s Platform And Role In India
Alibaba.com connects more than 50 million active buyers across more than 200 countries and regions, according to Rocky Lu, head of India business at the company. Lu said Alibaba.com has operated in India for more than two decades and remains focused on helping MSMEs sell abroad through digital tools. He did not confirm whether the Startup India program is the first direct partnership with the federal government since 2020, but said the company has continued to work with government and semi-government bodies through training programs and collaborations with export promotion councils.
Policy Views From Analysts
The partnership reflects a differentiated approach that keeps restrictions in strategic and security-sensitive areas while allowing economic engagement where there is a clear benefit, said Kazim Rizvi, founding director of the New Delhi-based think tank The Dialogue. Rizvi said regulatory clarity and predictable policy would help startups participate with confidence. George Chen, partner and co-chair of the digital practice at The Asia Group, said the government appears to be drawing a line between export platforms and consumer apps and sees value in Alibaba’s reach, including in markets such as Africa, for diversifying Indian exporters’ sales.
Comparison With China’s Platform Policy
Chen said India’s approach mirrors how China treats foreign platforms, blocking consumer apps like Facebook and Instagram for domestic users while allowing those companies to support Chinese exporters abroad. The comparison underscores why New Delhi may accept an export-focused role for Alibaba.com while keeping consumer platform bans in place.
Recent Moves And Diplomatic Setting
The Startup India collaboration follows other steps by Alibaba.com to expand export services in India, including the June 2025 launch of its Trade Assurance program to support payment protection and dispute resolution for cross-border trade. The developments also coincide with signs of limited engagement in technology forums, with Chinese representatives expected at the India AI Impact Summit next week, while Indian officials have not indicated any change to restrictions on Chinese consumer platforms.
Featured image credits: Flickr
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