India’s robust technology and internet industry have not been able to foster strong, competitive products for the domestic market.
The Indian Government recently banned 59 Chinese apps from the country. Though this measure is said to have been a body blow to Chinese apps that were on the rise in global as well as Indian markets, it is unlikely that it will have a major impact on the Chinese tech sector.
Chinese tech firms maintain most of their business in China, which is already one of the largest digital markets in the world. Moreover, India’s tech market is far from reaching the heights of the Chinese tech sector. For India, surpassing China seems out of the question, at least for the moment.
India’s robust technology and internet industry have not fostered strong, competitive products for the domestic market. The Chinese internet products, on the other hand, have made inroads into nearly half the market. Additionally, Chinese products have not only gained widespread popularity among Indian consumers but have greatly benefited Indian consumers by increasing their spending power.
A ban on Chinese tech firms will severely impact and may even lead to direct losses to the Indian consumers. And will undoubtedly do more bad than good. Unlike China, Indian tech does not have a strong presence in global markets. So the move will not trigger a chain effect. Many Southeast Asian countries have shown a welcome attitude toward Chinese investments.
Today, global factors drive the tech sector; economic nationalism could impact the industry in a nation but won’t have any effect on firms globally. Capitalism vastly dictates the world’s economy. So long as capitalism reigns king, companies will always put profit above all else. Which means so long as it is profitable to do business with Chinese firms, the world will continue to do so.Also Read: Chinese apps banned | Here's what experts have to say