India’s startups including leading Paytm, Zomato, Udaan and BigBasket may see their funding stop abruptly if the conflict continues. India is increasingly relying on Chineese backers to support the growing tech industry. India and Beijing are pushing hard economic policies toward protectionism against each other. This is not new, but the death of 20 Indian soldiers in the latest border clash is amplifying the already precarious situation.
$3.9 billion in both strategic and financial investment has been pumped in the Indian economy in 2019 by Chinese investors, $2 billion in 2018. This supplants the United States, putting at risk the fast-growing digital economy of the country.
India recently replied to Beijing policies by prohibiting state-run telecom from buying Chinese equipment.