India has entered into a targeted collaboration with Alibaba.com, the B2B arm of China’s Alibaba Group, through its Startup India program. The initiative focuses on empowering startups and micro, small, and medium enterprises (MSMEs) to expand their reach to international buyers via Alibaba’s global marketplace.
Under the agreement, Startup India will identify promising Indian startups capable of guiding local exporters particularly, small manufacturers and traders onto the platform. These startups will receive commissions along with specialized technical assistance to facilitate onboarding, scaling, and digital export activities.
This partnership stands out amid ongoing geopolitical tensions between India and China. Since 2020, following a border incident, New Delhi has maintained bans on numerous Chinese consumer-facing apps and services, such as TikTok, PUBG Mobile, and AliExpress (another Alibaba offering). The current tie-up represents a deliberate, limited form of cooperation centered solely on export promotion, rather than any easing of broader restrictions on consumer tech.
MSMEs play a vital role in India’s economy, contributing roughly half of the nation’s exports and about 31% of GDP, per recent official data. By tapping into Alibaba.com’s vast network which links over 50 million active buyers in more than 200 countries and regions the program aims to boost “Made in India” products’ visibility and sales abroad.
Rocky Lu, who heads Alibaba.com’s operations in India, emphasized the company’s long-standing commitment to the market. He noted that Alibaba.com has operated there for over 20 years and continues to prioritize enabling MSMEs through digital tools and infrastructure. Lu highlighted prior engagements with Indian export bodies, including training sessions and partnerships with promotion councils, though he stopped short of confirming if this marks the first formal federal-level link since the 2020 bans.
Experts view the move as part of India’s pragmatic strategy: restricting security-sensitive consumer platforms while permitting business-oriented collaborations that deliver clear economic gains. Analysts point out parallels with China’s own approach barring foreign consumer apps domestically yet allowing them for export-oriented firms.
The collaboration builds on Alibaba.com’s recent efforts in India, including the June 2025 rollout of its Trade Assurance service, which provides payment safeguards and dispute mechanisms to reduce risks for cross-border sellers.
Looking ahead, observers stress the need for stable regulations to build confidence among participating startups. The initiative also aligns with gradual signs of thawing in India-China tech interactions, such as anticipated Chinese participation in upcoming events like the India AI Impact Summit, though no shifts in consumer app policies have been signaled.
This selective engagement underscores New Delhi’s focus on diversifying export channels and supporting smaller businesses in competitive global markets.
