Decline of Chinese investors in Indian start ups


IC: South China Morning Post

Ever since the Indian government officially banned 59 Chinese apps, the number of Chinese investors have fallen.  A huge reason behind is the changes in foreign direct investment (FDI) rules, that made prior government approval mandatory for investments from countries that share a land border with India.

Prime Minister Narendra Modi, in his Independence Day speech, mentioned that FDI inflows have risen by 18% this year.

Data from deals analysis firm Venture Intelligence showed that Chinese investors had invested $166 million in Indian startups between January and July 2020, in contrast to $197 million last year.

Chinese investors had put in a total of $641 million in Indian startups last year.

Clearly, the stricter government rules introduced in April have resulted in this dip. The change in these policies was mainly aimed at restricting investments from China after the India-China face-off on the border.