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Chinese investments in Indian startups: Trends and controversies | ORF

When looking at the foreign investment trends in India over the last two decades, the country has received a cumulative US $456.91 billion in FDI, with over 72 percent of it coming from just five countries, Mauritius, Singapore, Japan, the Netherlands and the US—of which China is not one. The proportion of China’s foreign direct investments (FDI) in India during the same period constituted a mere US $2.34 billion or 0.51 percent of the total inflows. However, regardless of this, there is no denying that over the last few years, Chinese investments have shot up considerably to the extent of being pervasive across various sectors, such as infrastructure, automobiles, consumer goods, fintech, travel, transport, e-commerce, etc. Post-2014, investments from China both in the form of private equity, as well as greenfield investments, has assumed great proportions in the Indian market.

While the influx of FDI from China into the startup space is large, its impact is also significant….

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