Indian Government major focus on China. Indian Government will slowly terminate the Chinese market. - World Updatez with MK

Indian Government major focus on China. Indian Government will slowly terminate the Chinese market.

The BBC tried to contact several unicorns, including companies like Paytm, BigBasket and Snapdeal, but none of them refused to talk on-record, given the seriousness of the case.

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Industry-related people say the government's aim is not to stop funding from China. Instead, the government does not want to make it easier for Chinese companies to take equity in India's tech space or strengthen their presence.

Jabin T. Jacob, professor of international relations at Shiv Nadar University, says "The government will not ban it completely. The government will create an atmosphere of uncertainty over regulations to make it extremely difficult for startups to take Chinese investment ahead of a point."

Experts also say that instead of exiting the current investment, the government's focus will be on keeping telecom giants like Khwawe away from it at the time of India's 5G trials.

It is not clear what the investment ceiling of Chinese companies will be, but it is hardly possible for a single group to be owned by more than 10 per cent without government approval and the ownership of a venture capital firm more than 25 per cent.

India start-up capitals to limit after china ban


So where will Indian startups get capital?


Says Atul Pandey, partner of a law firm representing Chinese investors in India, "Given the large-scale presence of Chinese companies, there are few chances of immediate arrangement of alternative funds from elsewhere."

They say they have 12 to 14 applications from Chinese investors, which would have been automatically approved, but are now pending for approval.

He says, "What the government decides on these proposals will clear their approach to new investments."

The ongoing tension between the two countries has already aggravated uncertainty. Investment agreements say funding is quickly completed in comparison to Western countries where There are Chinese investors.


Major Technology Market was built with China. India to make next 30 unicorns without China


Indian startups are trying to draw lessons from the mobile first trend of the Chinese market so that they can move on the same path.

The sudden removal of Chinese technology giants has made many companies come in.

Experts say that even though Chinese investments are not there, strategic investors from other parts of the world will return after the COVID-19 era.

They say india is still the largest market for internet companies.

In the era of corona virus lockdown, India has raised nearly $20 billion in foreign capital from Silicon Valley companies like Google and Facebook and global private equity firms like AIDA, KKR and General Atlantic.

But, most of this money has been put into Mukesh Ambani's Jio platforms.

India may need to prepare domestic capital to fill china's vacant space.


Gopal Jain, managing director of a private equity firm, told a local TV channel that estimates show that Indian private equity and venture capital firms are dependent on foreign capital to alarming levels. Indian capital's share in their funds is only 5 per cent.

He says that in the 19th era, when there is a shortage of capital, the share will have to be increased from 30 to 40 per cent.

This will determine whether India will be able to raise the next 30 unicorns without Chinese investment.


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