The divergent paths of India’s and China’s tech companies

Following the implementation of India’s investment limits in April 2020, the economic gap between India and China is expected to widen due to China’s restrictions on its own tech behemoths. According to a new report, technology firms in India have resisted fears that lower Chinese funding would harm this fast-growing sector over the last year. 

India’s start-ups can now access financial markets. Following Zomato’s success, billion-dollar IPOs are planned (IPOs). More than 60 initial public offerings (IPOs) will take place in 2021, and their success may inspire others to follow suit in the years to come.

Investments between China and India 

Baodu and Tencent are the only two of China’s three largest BAT technology firms to have invested approximately $3 billion in Indian start-ups. Baidu has taken a little longer to catch on.) 

What becomes of the money? There is a wide range of topics covered. From 2015 to 2017, the four largest sectors were e-commerce ($3 billion), transportation ($1.7 billion), fin-tech ($750 million), and travel ($450 million).

Paytm’s parent company, Alibaba, purchased a 40% stake in the company in 2015 for $700 million. In addition to Zomato and Snapdeal, Tencent owns stakes in Ola, Flipkart, Practo, and Snapdeal. 

Tiktok and Douyin are popular Chinese apps, and many Chinese companies, including Bytedance, see India as their next big market. Instead of acquiring new technology (India is widely regarded as lagging behind China in this regard), the goal is to share Chinese e-commerce experience with Indian enterprises and assist them in growing in a manner comparable to their Chinese counterparts.

In the meantime, China’s domestic market is contracting. According to Baidu CEO Robin Li, Beijing’s tech sector is in “winter.” Because Chinese corporations face increased hostility in the West, India may become a more appealing market in the future. 

Trading and Investing in India 

As a result, India’s trade and investment strategy with China is falling behind. Opening up China’s IT and pharmaceutical markets, as well as attracting Chinese investment in India’s greenfield infrastructure and manufacturing industries, are among India’s top priorities.

Both sectors have seen – and continue to see – a significant deal of work. Because neither serves China’s ambitions or interests well, both have generally failed to bear fruit. Let’s take a look at the pharmaceutical and IT businesses. Fosun, for example, paid $2 billion for Gland Pharma, an Indian pharmaceutical company. 

Because NIIT does not sell Indian IT services or products but rather trains tens of thousands of young Chinese in IT skills each year to benefit Chinese, it is the only Indian IT company to be successful there.


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