The unofficial trade war between China and India after the dispute at the Indo-China border has created a wave in the country to boycott all Chinese products. The import giant that is the manufacturing hub for the world has received a huge backlash after attacking Indian soldiers and now the citizens have shown their outrage towards China.
The whole thing triggered Indians into uninstalling all Chinese applications and to boycott purchasing of any products that will help the economy of China. According to the experts, this outrage will result in putting a hold on any upcoming tech investments, and Chinese investors will withdraw themselves from investing in Indian startups.
Reportedly, the Chinese investors have invested an estimated $4 billion into Indian tech startups including 18 of the country’s most valuable businesses such as Paytm, Byju’s, Dream11, Ola etc.
The tension created at the Indo-china border has given the startup ecosystem a lot to worry about. The Indian government has also taken some actions to ensure we are not helping their economy anymore. As per recent news, the Government has added some restrictions on FDI that states that any company or individual will have to take prior approval from the government for any investment with China.
Roma Priya, the Founder of Burgeon Law has stated that the immediate impact of all the boycotting will soon result in affecting the business relations, such as contract cancellations, funding being put on hold, trade deficit and what not. This will force Indian businesses to soon find an alternative as their transactions are most likely to be delayed due to the on-going dispute.