South Asia Sub­con­ti­nent

Chi­nese in­vest­ments in In­dian star­tups sky­rocket By Vish­wesh­war Jatain

Beijing Review - - Business -

In Sino-In­dian trade, In­dia is most con­spic­u­ously known for be­ing a huge mar­ket for elec­tronic goods man­u­fac­tured by China. Of course, that’s not all that China ex­ports to In­dia—there are also or­ganic chem­i­cals, boil­ers, milk, fuel and oil.

In 2014, China edged out the United Arab Emi­rates to be­come In­dia’s largest trade part­ner. By 2015, China al­ready ac­counted for 15.8 per­cent of all In­dian im­ports, adding up to a to­tal of $61.5 bil­lion. This means that, bi­lat­eral po­lit­i­cal cli­mate aside, the Chi­nese and In­dian economies are in­ex­tri­ca­bly linked to each other.

Trade is only one of the ways money moves be­tween coun­tries in the mod­ern world, though, and it’s a sec­ond route that’s been gain­ing mo­men­tum of late: pri­vate eq­uity and ven­ture cap­i­tal.

In 2015, Chi­nese com­pa­nies col­lec­tively in­vested $ 3.38 bil­lion into In­dian star­tups. This pe­riod marks an in­flec­tion point in eco­nomic re­la­tions be­tween China and In­dia. No longer con­tent just to sup­ply goods to In­dia, China now wants to place bets on In­dia’s growth. Chi­nese tech giants have in­vested more in In­dian star­tups in the last two years than they did in the en­tire pre­ced­ing decade. Is this sud­den in­ter­est an anom­aly or a trend? Bar­ring a few ex­cep­tions, most of the fund­ing coming from Chi­nese tech giants into tech­nol­ogy-based In­dian star­tups in the past two years has been in the mo­bile, trans­porta­tion, e-com­merce, ad-tech, pharma and en­ergy sec­tors.

In Septem­ber 2015, Alibaba in­vested $680 million in One97, the par­ent com­pany of Paytm, a pop­u­lar In­dian mo­bile pay­ment app that con­sumers can use to pay util­ity bills, book movie tick­ets, flights and ho­tels, and even do their shop­ping. Later, in col­lab­o­ra­tion with Tai­wan-based

Chi­nese and In­dian col­leagues dis­cuss pro­duc­tion de­tails at the In­dian branch of Chi­nese ac­ces­sory sup­plier Yaom­ing Zhidai in the city of Visakha­p­at­nam on July 31

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