India partners with Alibaba.com for export push despite past China tech bans

India’s government has struck a partnership with China’s Alibaba.com as part of an export-focused effort designed to help startups and small businesses connect with overseas buyers. The decision underscores New Delhi’s more selective, case-by-case engagement with Chinese-linked technology platforms years after India introduced broad bans on a range of consumer apps and games.

This week, the Indian government’s Startup India initiative announced a collaboration with Alibaba.com to identify and support Indian startups that can help onboard and scale Indian exporters on Alibaba’s global B2B marketplace. Under the program, participating startups will receive commissions and technical support, and, in return, they will assist small manufacturers and traders in accessing international demand and reaching buyers outside India.

The announcement comes after several years of strained ties between India and China. In 2020, following a deadly border clash, New Delhi banned dozens of Chinese-linked apps, including major platforms such as TikTok, PUBG Mobile, and AliExpress, the Alibaba Group-operated e-commerce app. Those bans remain in effect. As a result, this public cooperation with Alibaba’s export platform appears to be a narrowly defined form of engagement aimed at trade outcomes, rather than a broader shift in India’s posture toward Chinese consumer-facing technology.

India’s export strategy is closely connected to the role of small businesses and the digital platforms they use to access foreign markets. Micro, small, and medium enterprises contribute nearly half of India’s exports and around 31% of GDP, according to the Indian government’s latest Economic Survey. That economic weight is one reason New Delhi has prioritised expanding digital channels for small and medium-sized firms to sell abroad, including via global B2B platforms such as Alibaba.com.

Alibaba.com’s marketplace connects more than 50 million active buyers across over 200 countries and regions, according to Rocky Lu, the company’s head of India business.

“Alibaba.com has been active in India for over two decades, and we remain dedicated to our core mission of empowering MSMEs to scale their businesses globally,” Lu said. “Our focus continues to be on leveraging our digital infrastructure to help ‘Made in India’ products reach an international audience through digital transformation.”

Lu did not confirm whether the Startup India initiative represents Alibaba.com’s first direct partnership with India’s federal government since the 2020 bans. However, he said the company has “maintained a consistent cadence of engagement with various government and semi-government bodies integral to the Indian export ecosystem,” including through digital training programs for MSMEs and partnerships with export promotion councils.

The collaboration reflects India’s differentiated approach toward China — maintaining restrictions in areas viewed as strategic or security-sensitive, while allowing economic engagement where the benefits are clear — said Kazim Rizvi, founding director of The Dialogue, a New Delhi-based public policy think tank.

“Going forward, regulatory clarity will be important,” Rizvi said. “Predictable policy environments will help ensure that startups feel confident participating in such initiatives.”

George Chen, partner and co-chair of the digital practice at The Asia Group, a Washington-based consultancy that advises companies on policy and geopolitical risk across Asia, said India appears to be drawing a line between export-oriented services and consumer-facing Chinese apps. Chen, who previously served as a regional public policy director at Meta, said New Delhi sees practical value in Alibaba’s ability to support B2B exports — especially given Alibaba.com’s reach in regions such as Africa — which could help Indian exporters diversify where they sell and reduce reliance on a smaller set of markets.

Chen added that India may be taking cues from how China itself treats digital platforms.

“China bans 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 partnership also follows other recent steps by Alibaba.com to expand its export-related services in India. In June 2025, the company launched its Trade Assurance program in the country to help Indian small and mid-sized exporters manage cross-border transaction risk through payment protection and dispute-resolution tools.

These moves are also unfolding as India and China show tentative signs of improved engagement in multilateral technology discussions. Chinese representatives are expected to attend the India AI Impact Summit in New Delhi next week. Even so, Indian officials have not signalled any shift in the ongoing restrictions covering Chinese consumer technology platforms.