India partners with Alibaba to boost exports, support small businesses
What's the story
The Indian government has partnered with Alibaba.com, a leading Chinese e-commerce platform, to promote exports. The collaboration is part of the government's Startup India initiative and aims to help start-ups and small businesses connect with global buyers. The program will offer commissions and technical support to these start-ups, enabling them to assist small manufacturers and traders in accessing international markets.
Diplomatic context
Partnership amid strained India-China relations
The partnership comes after years of strained relations between India and China. In 2020, New Delhi banned several Chinese-linked apps, including popular platforms like TikTok and PUBG Mobile, and AliExpress, an e-commerce app run by Alibaba Group. The restrictions were imposed after a deadly border clash between the two nations. However, this new collaboration with Alibaba.com is a selective engagement with the platform rather than a broader policy shift.
Economic significance
MSMEs crucial for India's export growth
India's export ambitions are closely tied to its small businesses, particularly micro, small, and medium enterprises (MSMEs). According to the Indian government's latest Economic Survey, these enterprises account for nearly half of the country's exports and about 31% of its GDP. This highlights why New Delhi has been focusing on expanding digital market access for smaller firms through global B2B channels like Alibaba.com.
Platform reach
Alibaba.com has been in India for over 2 decades
Alibaba.com, which connects over 50 million active buyers across 200 countries and regions, has been operating in India for more than 20 years. Rocky Lu, head of India business at Alibaba.com, said the company is committed to its mission of empowering MSMEs to scale their businesses globally. He emphasized that they are focused on using their digital infrastructure to make "Made in India" products available to a global audience through digital transformation.
Government engagement
In touch with Indian government bodies
Lu didn't confirm if the Startup India initiative is Alibaba.com's first direct partnership with India's federal government since 2020. However, he said that the company has been in touch with several government and semi-government bodies key to the Indian export ecosystem. This includes digital training programs for MSMEs and collaborations with export promotion councils, furthering their commitment to supporting India's export sector.
Strategic approach
Regulatory clarity will be important for such initiatives
The partnership with Alibaba.com reflects India's selective engagement with China, allowing economic engagement where there is clear benefit while maintaining restrictions in strategic and security-sensitive sectors. Kazim Rizvi, founding director of The Dialogue, a New Delhi-based public policy think tank, said regulatory clarity will be important for such initiatives. George Chen of The Asia Group noted that India sees value in Alibaba's role in supporting B2B exports due to its reach in markets like Africa.