The government has amended the Foreign Direct Investment (FDI) policy to discourage opportunistic investment in Indian companies by neighbouring countries.
The Indian government does not want vulnerabilities created by the COVID-19 pandemic to be exploited by any country, including China.
The FDI policy tweak comes close on the heels of China's central bank raising its stake in HDFC.
Also Read | China says India's new FDI rules violate WTO principles, hopes for revision
The new FDI policy could lead to a slowdown in Chinese investments in Indian companies. Chinese tech investors have put an estimated $4 billion into Indian startups. According to a Gateway House report, 18 of India's 30 unicorns are now Chinese-funded, .
Interesting points to know stated in the report:
-TikTok, the video app has 200 million subscribers and has overtaken YouTube in India.
- Alibaba, Tencent and ByteDance rival Facebook, Amazon, and Google in India.
- Chinese smartphones like Oppo and Xiaomi lead the Indian market with an estimated 72 percent share, leaving Samsung and Apple behind.
Tiktok, Like, Helo, ShareIt, and UC browser are top five Chinese apps on the Google Play Store.
Snapdeal witnessed a huge investment of over $700 million from Chinese Investors. Companies like Swiggy and Ola have also received an investment of over $500 million.
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