Tensions between the two countries have been rising since June, when they engaged in their worst conflict in decades: a bloody clash along a disputed border in the Himalayas that left at least 20 Indian soldiers dead. In the following weeks and months, Indian officials banned apps from Chinese tech giants Bytedance, Alibaba and Tencent, and reportedly restricted embattled telecommunications equipment maker Huawei from participating in India's 5G network.
"And now they can only watch the local, copy version apps taking over their users and do nothing," said Paull. For internet applications developed by Google and other tech companies, data is like oxygen, said Gateway House director and board member Blaise Fernandes. "As India pushes out Chinese tech, a chaotic business landscape is emerging. Now, everything that Chinese tech firms have bet on to succeed in the Indian market is being picked apart," Prakash said.Beyond developing their own products, Chinese tech companies had been investing heavily in India's tech startups, pouring some $4 billion into the sector since 2015, according to Gateway House.
Then, amid the border clashes in June, the otherwise investor-friendly government of Maharashtra, a western state in India, paused or canceled a number of agreements signed with leading Chinese companies earlier this year, Ghosh said. "There has been no discussion with any of our major shareholders ever, nor any plans, about selling their stake or becoming the controlling shareholder," a Paytm spokesperson said.When it comes to digital payments and financial technology, Ant is widely considered to be a global leader. And if Ant and other Chinese tech companies disengage because of political tensions, India could miss out on leading edge technology.