The state media reported on Thursday, that India has become an Action Zone for Chinese IT investors like e-commerce giant Alibaba as its market attracted second highest Chinese funding in IT products next to the US.
The report added, citing various factors contributed India an attractive, irresistible proposition for Chinese investors – such as huge internet population, quick growth of mobile internet users, political strength, established institutions like judiciary, a prosperous start-up ecosystem, renowned IT expertise and the promising market potential and so on.
While the Chinese investors look to flock to India to cash on the fast growing e-commerce market, there are also concerns among Chinese investors over growing calls for boycott of Chinese products in India following China’s blocking of India’s move to ban JeM chief Masood Azhar at the UN and blocking India’s bid to become member of the Nuclear Supplier Group.
Chinese officials said China’s investment in India currently touched about USD 3 billion, which Indian officials said not much compared to the potential.
In the first half of 2016, Chinese internet companies and venture capital firms invested more than 42.1 bn yuan ($ 6.26 billion) in 60 technology related projects overseas, including 10 in India & 33 in the US. India will be the next big internet market after China, said Eric Shu, a Sr. Partner of venture capital firm InCapital.