By distancing China in tech, India may be shooting itself in the foot

Over the past few years, India has been a key battleground for American and Chinese tech companies. Now, American firms may have an edge.

As public sentiment turns against China amid an ongoing border conflict, New Delhi has clamped down hard on Chinese presence in the Indian tech ecosystem. Over 200 Chinese apps have been banned and Chinese investments in Indian startups are increasingly facing scrutiny from regulators.

Such moves were preceded by restrictions on foreign direct investment (FDI) imposed a few months ago to prevent opportunistic takeovers from China. India hopes that these moves will inhibit China’s ability to exert influence in the country.