India’s government has launched a new collaboration with China’s Alibaba.com, aiming to help startups and small businesses expand their reach to overseas buyers. The initiative, announced through the Startup India program, will identify Indian startups capable of supporting exporters on Alibaba.com’s global B2B platform, offering commissions and technical assistance to help small manufacturers and traders access international markets.
The partnership comes amid continued restrictions on Chinese consumer apps following the 2020 border clashes, when India banned platforms including TikTok, PUBG Mobile, and AliExpress. Experts say this move reflects a carefully targeted strategy: engaging Chinese platforms where economic benefits are clear, while maintaining security and strategic restrictions. According to Kazim Rizvi, founding director of The Dialogue, India’s approach balances cautious engagement with the need to support exporters.
Alibaba.com, which connects over 50 million active buyers across more than 200 countries and regions, emphasized its commitment to empowering micro, small, and medium enterprises in India. Rocky Lu, head of India business at Alibaba, highlighted efforts to use digital infrastructure to help “Made in India” products reach international markets, including digital training programs and partnerships with export promotion councils. Analysts say this export-focused collaboration differentiates between consumer-facing apps, which remain restricted, and platforms that drive global trade opportunities.
The initiative also follows Alibaba.com’s recent steps to expand export support in India, such as the Trade Assurance program launched in June 2025, which helps exporters manage cross-border transaction risks. The collaboration is part of a broader effort to strengthen India’s digital export ecosystem, where MSMEs account for nearly half of exports and roughly 31 percent of GDP. With Chinese representatives set to attend the India AI Impact Summit next week, the partnership signals a cautious but strategic opening for economic engagement without altering longstanding bans on consumer tech platforms.