The Indian government has partnered with China’s Alibaba.com on an export-focused program aimed at helping startups and small businesses reach buyers abroad. The move highlights New Delhi’s selective treatment of China-linked technology platforms after years of blanket bans on consumer apps and games.
This week, the Indian government’s Startup India initiative Announce Collaborating with Alibaba.com to identify and support Indian startups that can help attract and scale Indian exporters on the group’s global B2B platform. The program provides commissions and technical support to these startups to help small manufacturers and traders access foreign markets.
The new partnership comes after years of tense relations between India and China. New Delhi banned dozens of China-linked apps in 2020 after a deadly border clash, including major platforms like TikTok, PUBG Mobile and AliExpress, an e-commerce app run by Alibaba Group. These restrictions remain in place, making the Indian government’s public cooperation with the export-focused Alibaba platform a carefully restricted form of engagement rather than a broader policy reset.
India’s export ambitions are closely linked to its small businesses and the platforms they use to access foreign markets. Representing micro, small and medium enterprises Nearly half of the country’s exports And about 31% of GDP, according to the Indian government’s latest economic study, underscoring why New Delhi is focusing on expanding digital market access for small businesses through global B2B channels, including Alibaba.com.
Alibaba.com’s B2B platform connects more than 50 million active buyers across more than 200 countries and regions, said Rocky Lu, head of the company’s India business.
“Alibaba.com has been active in India for over two decades, and we remain committed to our core mission of empowering SMEs to scale their businesses globally,” Lu told TechCrunch. “Our focus continues to be on leveraging our digital infrastructure to help ‘Made in India’ products reach a global audience through digital transformation.”
Lu would not confirm whether the Startup India initiative marks Alibaba.com’s first direct partnership with the Indian federal government since 2020. However, he said the company “has maintained a steady rhythm of engagement with various government and semi-government bodies that are an integral part of the Indian export ecosystem,” including through digital training programs for MSMEs and collaboration with export promotion councils.
Kazim Rizvi, founding director of the New Delhi-based Center for Public Policy Research, said the partnership reflects India’s differentiated approach to China, maintaining restrictions in strategic and security-sensitive sectors while allowing economic engagement where there is clear benefit.
“Going forward, regulatory clarity will be important,” Rizvi told TechCrunch. “Predictable policy environments will help ensure startups feel confident participating in such initiatives.”
The Indian government appears to be differentiating between export-focused platforms and consumer-facing Chinese apps, said George Chen, partner and co-head of the digital practice at The Asia Group, a Washington-based consulting firm that advises companies on geopolitical policies and risks across Asia. Chen, who previously served as regional public policy director at Meta, said New Delhi sees value in Alibaba’s role in supporting B2B exports, especially given the platform’s reach in markets like Africa, which could help Indian exporters diversify their global sales.
Chen told TechCrunch that India appears to be drawing lessons from China’s approach to digital platforms.
“China blocks foreign apps like Facebook and Instagram for Chinese individual users, but still allows Facebook and Google to do business with Chinese companies, especially exporters who rely on those platforms to sell products abroad,” Chen said.
The Startup India collaboration comes on the heels of other recent steps taken by Alibaba.com to expand export-focused services in India. In June 2025, the company Fired Its trade assurance program in the country aims to help small and medium-sized Indian exporters manage risks in cross-border transactions through payment protection and dispute resolution tools.
These developments also come as India and China show initial signs of improving engagement in multilateral technology forums Chinese representatives are expected to attend India AI Impact Summit in New Delhi next week. However, Indian officials have not indicated any change in restrictions on Chinese consumer technology platforms.
The Indian Ministry of Commerce did not respond to a request for comment.
