Made in India: Indian tech seizes the moment after government ban on Chinese apps

Indian apps are set to plug the gap after the Indian government banned Chinese apps in the face of humiliation at Ladakh. Millions of Indians have shifted to made-in-India applications in order to meet their social needs. Indian companies have hailed these steps by the government, which they say was taken keeping the privacy and needs of Indians in mind. It remains to be seen whether this has any impact on the Chinese economic juggernaut.

Indian apps booming

Millions of Indians have joined homegrown social media platforms since New Delhi banned a slew of Chinese apps, including TikTok, amid growing tensions between the giant neighbours, industry officials said Thursday. Indian apps are booming amid the fracas between New Delhi and Beijing.

The ban comes as India steps up economic pressure on China following a border battle last month in which 20 Indian soldiers died.

India bans Chinese apps on allegations of threatening sovereignty

The apps “are engaged in activities… prejudicial to sovereignty and integrity of India, defence of India, security of state and public order,” the Ministry of Information Technology said in a statement.

“The government of India has decided to disallow the usage of certain apps… This decision is a targeted move to ensure safety and sovereignty of Indian cyberspace.”

Read more: India asserts its “dominance” by banning Chinese apps

The statement said the move was taken after the ministry received several complaints alleging theft of users’ data and violations of user privacy.

Indian apps booming after ban on Chinese apps 

The 59 banned apps include video-sharing giant TikTok, Helo and Likee, with authorities accusing them of activities “prejudicial” to the “sovereignty and integrity of India”.

Prime Minister Narendra Modi, who has a huge social media profile, threw his weight behind the campaign by closing his account on China’s Weibo platform on Wednesday.

His photograph and 115 posts made over the past five years were deleted at the request of Indian authorities, the Chinese company said.

Read more: TikTok denies Indian allegations that it shared user data

India’s 1.3 billion population is a key market for global internet players and homegrown app platforms Sharechat and Roposo said they had seen a huge surge in new users since Monday’s ban on their Chinese rivals.

Sharechat said in a statement that its video platform had clocked 15 million new downloads — sometimes at a rate of half-a-million every 30 minutes — in the 48 hours following the ban.

It now has at least 150 million registered users, it said.

“We welcome the move from the government against platforms that have had serious privacy, cyber-security and national security risks,” Berges Malu, public policy director for ShareChat, told AFP.

Indian apps booming after granted level playing field 

“We believe this move will help create a level playing field (for Indian platforms),” Malu added.

Some 10 million new subscribers have joined the Roposo video app, Naveen Tewari, chief executive of owners InMobi, told AFP, bringing its user base to 75 million.

An estimated 120 million Indians were TikTok users before the ban.

Read more: Cornered India can not expect Russian help after humiliation by China: Andrew Korybko

Tewari said the app ban would give local platforms the chance to become the world’s fourth major tech hub alongside the United States, Russia and China.

“Such opportunities don’t come easily,” he added.

The Indian industry has long been pressing for action against Chinese apps which dominate the market, with Sharechat and Inmobi calling for the platforms to follow Indian laws and values.

Fears of threats to Indian democracy

There are also fears foreign apps could influence domestic affairs in areas such as politics.

“Deep penetration of Chinese platforms in an open democracy like India makes its future election processes vulnerable to outside interference and manipulation,” said one senior New Delhi-based digital industry analyst, speaking on condition of anonymity.

Observers say retaining the new followers will be the main challenge for the Indian upstarts, which will now have to invest in staff and content to keep audiences.

Read more: No Chinese allowed in Delhi restaurants after border clash

Arvind Gupta, founder and head of the DigitalIndia Foundation, told AFP that Indian firms also had to answer “the strategic concerns around privacy and data security” while taking advantage of the exit of TikTok and other rivals.

“This vacuum also makes India’s digital landscape much more attractive for investment… from other democratic and open societies,” said Gupta, a former technology head for India’s ruling Bharatiya Janata Party.

AFP with additional input by GVS News Desk

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