Alibaba.com partners with India’s Startup India for export push

The Indian government has partnered with Alibaba.com on an export-focused program for startups and small businesses. Under the collaboration, the government’s Startup India initiative will work with the platform to help onboard and scale Indian exporters. The initiative focuses heavily on Micro, small, and medium enterprises (MSMEs), which are critical to the domestic economy. According to the Indian government’s latest Economic Survey, MSMEs account for nearly half of India’s exports and about 31% of India’s GDP. By leveraging Alibaba.com, the program aims to expand digital market access for these smaller firms through global business-to-business (B2B) channels.

Alibaba.com has been active in India for over two decades. According to Rocky Lu, head of India business at the company, the platform connects more than 50 million active buyers across over 200 countries and regions. “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,” said Rocky Lu, head of India business at the company, noting that the focus continues to be on leveraging digital infrastructure to help products reach an international audience. To support this, the company previously expanded its services in June 2025 by launching its Trade Assurance program in India, which serves as a risk management tool for cross-border transactions by offering payment protection and dispute resolution.

The partnership represents a carefully circumscribed engagement, highlighting a differentiated approach to economic relations between India and China. In 2020, India imposed sweeping bans on dozens of Chinese-linked apps following a deadly border clash. While those restrictions on consumer platforms remain in place, the government is maintaining economic cooperation where there is clear domestic benefit. Kazim Rizvi, founding director of the New Delhi-based public policy think tank The Dialogue, noted that regulatory clarity will be important going forward, adding that predictable policy environments will help ensure that startups feel confident participating in such initiatives.

This selective engagement mirrors strategies used elsewhere. George Chen, partner and co-chair of the digital practice at the Washington-based consultancy The Asia Group, pointed out that China employs a similar model, banning foreign apps like Facebook and Instagram for individual users while still allowing those platforms to do business with Chinese exporters who rely on them to sell products abroad. Chen added that Alibaba’s reach in markets such as Africa could help Indian exporters diversify their global sales. This pragmatic alignment comes amid tentative signs of engagement, as Chinese representatives are expected to attend the India AI Impact Summit in New Delhi next week, though Indian officials have not indicated any change to consumer app restrictions.

Why it matters

This partnership illustrates India’s ‘selective engagement’ strategy: maintaining strict security barriers against Chinese consumer apps while leveraging established B2B platforms to boost domestic export growth.