India supports Alibaba.com in pushing exports despite China’s technology ban

The Indian government has partnered with China’s Alibaba.com for an outsourcing program aimed at helping startups and small businesses reach overseas buyers. The move marks New Delhi’s selection of technology platforms linked to China after many years imposed greater restrictions on shopping programs and games.

This week, the Indian government’s Startup India Initiative he announced partnership with Alibaba.com to identify and support Indian startups that can help scale and grow Indian retailers on the global B2B platform. The program provides commissions and technical assistance to the founders to help small producers and entrepreneurs reach foreign markets.

The new agreement comes after years of tensions between India and China. New Delhi banned many programs linked to China in 2020 following the deadly conflict on the border, including major platforms such as TikTok, PUBG Mobile, and AliExpress, an e-commerce program managed by Alibaba Group. These restrictions remain in place, making the Indian government’s cooperation with Alibaba’s export-focused group a more formal communication strategy rather than a more policy-driven one.

India’s export goals are closely related to its small businesses and the platforms they use to reach foreign markets. Small, medium, and medium-sized businesses count almost half of the country’s exports and about 31% of GDP, according to the latest Indian government Economic Survey, underscoring why New Delhi has focused on expanding market opportunities for small businesses through global B2B channels, including Alibaba.com.

Alibaba.com’s B2B platform connects more than 50 million buyers in 200 countries and regions, said Rocky Lu, head of the company’s India business.

“Alibaba.com has been operating in India for more than two decades, and we remain committed to our core mission of empowering MSMEs to take their businesses globally,” Lu told TechCrunch. “Our focus continues to expand our digital infrastructure to enable ‘Made in India’ products to reach global audiences through digital transformation.”

Lu did not confirm whether the Startup India initiative marks Alibaba.com’s first partnership with the federal government in India since 2020. He said, however, that the company “has maintained strong partnerships with various government and non-governmental organizations that are important to the Indian export ecosystem,” including through digital training programs for MSMEs and partnerships with foreign marketing agencies.

The deal reflects India’s differentiated approach to China, keeping restrictions in security-related sectors and allowing economic action where there are clear benefits, said Kazim Rizvi, founding director of New Delhi-based policy think tank The Dialogue.

“Going forward, clarity should be important,” Rizvi told TechCrunch. “The transparent nature will help ensure that founders feel confident in their participation.”

The Indian government appears to be distinguishing between export-focused platforms and consumer-focused Chinese apps, said George Chen, partner and co-chair of digital at The Asia Group, a Washington-based consultancy that advises companies on political and global risks in Asia. Chen, who previously worked in public policy at Meta, said New Delhi sees the importance of Alibaba’s role in supporting B2B trade, especially due to the platform’s arrival in markets such as Africa, which will help Indian retailers sell their products globally.

India seems to be taking lessons from China’s approach to digital platforms, Chen told TechCrunch.

“China bans foreign apps like Facebook and Instagram for Chinese users but still allows Facebook and Google to do business with Chinese companies, especially exporters who rely on those platforms to sell goods abroad,” Chen said.

Startup India’s partnership follows recent moves by Alibaba.com to expand its India-focused operations. In June 2025, the company he started Its Trade Assurance program in the country aims to help small and medium-sized Indian exporters overcome the challenges of cross-border transactions through payment protection and dispute resolution mechanisms.

The development also comes as India and China are showing signs of pulling the plug on international technology summits, and Chinese representatives are expected to attend and India AI Impact Summit in New Delhi next week. Indian officials, however, did not indicate any change in restrictions on Chinese technology platforms.

India’s commerce ministry did not respond to a request for comment.