Chinese investors in Indian unicorns: India sitting on data trap
While the government did see the threat from the Chinese apps, it does not see any from investors from China accessing data of Indian consumers from their Indian partners.
With the ban on some 220 Chinese apps, India may have protected its sovereignty and integrity from prying Chinese eyes. But authorities, however, don’t seem to have a clue in protecting the country’s data from Chinese investors, who continue to invest in Indian apps and unicorns and gain access to data of users, who are predominantly Indian citizens. Besides the agreements between the investors and the apps are not in public forums for analysts to study it.
While the government did see the threat from the Chinese apps, it does not see any from investors from China accessing data of Indian consumers from their Indian partners. It is high time the government answer this question: Should the government continue to allow Chinese investors in Indian unicorns without adequate norms for protecting Indian users’ data?
During 2016-19, Chinese investments in Indian start-ups have grown 12 times. An India Today report listed the Alibaba Group’s strategic investments in Indian unicorns, starting from Big Basket ($250 million), Paytm.com ($400 million), Paytm Mall ($150 million), Zomato ($200 million) to Snapdeal ($700 million). Tencent, the other Chinese company, has invested in Indian firms like Byju’s ($50 million), Flipkart ($300 million), Hike Messenger ($150 million), Ola ($500 million) and Swiggy ($500 million). The investment from China seems to have fallen in 2020 following changes in the foreign direct investment rules that made prior government approval mandatory for investments from countries that share a land border with India. The Alibaba Group is among those hit by the new norms and is unlikely to sign fresh deals to fund Indian companies.
A recent Indian Express report said a Shenzen-based tech company with links to the Chinese government and Chinese Communist Party is monitoring 10,000 individuals and organisations including key decision-makers like the Prime Minister, Chief of Defence Staff among others.
Given the ban on apps because they were a threat to security, the government is yet to formulate full-fledged data security norms. Cyberlaw expert Pavan Duggal, who spoke to APN, said, “Chinese apps like Tiktok, Shareit were a great threat to Indian data because these apps, compared to other apps, were asking for a lot of permissions. They were generating and collecting a lot of personal data of users and sending them to servers in China which could be analysed using artificial intelligence and machine learning.”
“Any and every server anywhere is vulnerable to a potential data breach. But servers in China are highly vulnerable as China has a national cybersecurity law from 2017 and under this law, any information to servers, systems located within China could be automatically accessed or shared with the Chinese government. Hence, data on Chinese servers is not at all safe,”
-Duggal
“On the other hand, India does not have any law on data protection. The Personal Data Protection Bill, 2019 is pending for consideration of the joint parliamentary committee. As far as data is concerned, India is a leaking ecosystem,” he said.
Economist Akash Jindal said India needs to curb Chinese investment because it’s a threat to national security. When asked about the economic impact of curbing Chinese FDI, he said if we are able to market ourselves well, we would be in a position to solicit the same FDI from other countries.
On the security implications of a potential data breach in apps/companies associated with Chinese investors, defence expert PK Sehgal said not only does India need to ban apps linked to China, but “we also need to ban companies like Tencent, Alibaba who are stealing our data”. The moment India does it, other countries will follow, he said.
Talking about modern warfare, he said predictability plays an important role in warfare and data can help to predict the enemy, hence, security implications of a data breach are manifold. Data help to carry out psycho-analysis of important personalities and how leaders are going to react in a certain situation, he said. Sehgal emphasised on the need to take cyber warfare more seriously.
“India needs to secure data as the Chinese are in a position to create chaos and mayhem in India. Through the use of artificial intelligence, China can refine data and can impact India’s financial sector, railways, power grid. Before a single bullet is fired, there may be chaos and mayhem in India,” he added.
He emphasised on the use of information, misinformation, disinformation, propaganda as the tools of modern war. Last year, an Army jawan was honey-trapped via social media and ended up sharing confidential information with Pakistani agencies. When asked about the laws/guidelines for defence personnel using apps, Sehgal added the Defence Ministry has very clear instructions that defence personnel are not supposed to have these apps, but it is tough to monitor each jawan. Jawans are the most vulnerable for a potential honey trap, Sehgal said.
Given this situation, India needs to come up with a clear and cogent policy to deal with data localisation and specific guidelines so that the data has to be dedicatedly protected, otherwise Chinese investors could impact Indian security, sovereignty and integrity.
Amit Shah, JP Nadda, Chandrababu Naidu among leaders at NDA meet in Delhi amid Ambedkar row
The alliance had decided to convene on the birthday of the late BJP leader, noted for successfully leading the first coalition government to complete its term.
Union Home Minister Amit Shah, BJP chief J.P. Nadda and Telugu Desam Party (TDP) president and Andhra Pradesh Chief Minister Chandrababu Naidu among leaders of the NDA met in New Delhi on Wednesday to discuss different issues including Shah’s comment on BR Ambedkar days ago in Rajya Sabha.
In attendance, apart from Shah, Nadda and Naidu, JD-U leader and Union minister Rajiv Ranjan Singh, Apna Dal (S) president and Union minister Anupriya Patel, as well as JD (S) leader and Union minister H.D. Kumaraswamy were present.
Also present were Jitan Ram Manjhi, leader of Bihar’s Hindustani Awam Morcha (S) and a minister in the Modi government, Rashtriya Lok Morcha (RLM) president Upendra Kushwaha, a Rajya Sabha MP, and Thushar Vellappally, president of Bharath Dharma Jana Sena.
While the specific agenda of the meeting was not officially disclosed, sources indicated that discussions revolved around good governance and various political issues—principles that were central to Vajpayee’s tenure as Prime Minister. The alliance had decided to convene on the birthday of the late BJP leader, noted for successfully leading the first coalition government to complete its term.
Following the meeting, Nadda shared on X, “Attended the NDA leaders’ meeting in New Delhi today. Under the visionary leadership of PM Narendra Modi, India is achieving unprecedented milestones and has positioned itself as a global superpower. The NDA government remains committed to realizing the vision of ‘Viksit Bharat@2047’, ensuring a brighter and more prosperous future for all.”
Sanjay Nishad, chief of the NISHAD Party in Uttar Pradesh, described the meeting as “informal” and focused on Vajpayee’s legacy. He emphasised the importance of unity among all alliance members heading into future elections, mentioning that they congratulated the BJP leaders for their electoral victories in Haryana and Maharashtra.
Nishad further outlined that the meeting addressed coalition strategies to ensure that Prime Minister Modi’s initiatives effectively reach the populace and that electoral promises are fulfilled. He raised the topic of providing reservations for the fishing community, stating, “I presented evidence on this issue, as it was a poll promise. They will follow up with us next week to discuss it.”
Responding to inquiries about whether Amit Shah’s controversial remarks on Ambedkar were discussed, Nishad said, “We are here for the welfare of the people. Our energy should focus on achieving success in that area, rather than engaging with negativity from opposition parties.”
The NDA meeting underscores the alliance’s commitment to the proposed simultaneous elections, with all members backing the initiative. A Joint Committee of Parliament, established to review two bills related to simultaneous polls, is set to convene on January 8.
Manipur Chief Minister N Biren Singh on Wednesday emphasised the urgent need for peace in the state, which has faced ethnic violence since May of last year, and called on two communities to reach a mutual understanding.
Speaking at the Good Governance Day event held at the state BJP headquarters, Singh expressed confidence that the BJP could restore stability to the northeastern state, highlighting the party’s commitment to coexisting harmoniously.
“What is happening in Manipur today has multiple causes. Those who seek to divide the state are now questioning the government’s actions… they are driven by a desire for power,” Singh remarked.
He mentioned several initiatives, such as ‘Meeyamgi Numit’ (People’s Day), designed to foster closer relationships between officials and the public. “We do not oppose any specific community. The BJP’s position is clear: we advocate for the idea of living together and have initiated efforts to strengthen ties between the police and the community,” he stated.
Singh added that the state government is diligently addressing the needs of internally displaced persons by establishing committees throughout the administrative framework. He claimed that the administration is responding quickly to the displaced people’s needs in areas such as education and agriculture.
“We have not made any mistakes. Our goal is to ensure the well-being of future generations. It is essential for both communities to remain calm. Rather than dwelling on the past, we should concentrate on the upcoming NRC process, capturing biometrics, and using 1961 as the foundation year for the Inner Line Permit,” Singh said.
He also highlighted the government’s commitment to acting within a democratic and constitutional framework, noting that achieving these goals will take time. “What we require now is immediate peace and a resolution of misunderstandings between the two communities,” he concluded.
The ongoing violence has resulted in the deaths of over 250 individuals and left thousands homeless due to clashes between the Meitei community and Kuki-Zo groups since last May.
“Only the BJP can save Manipur. BJP leaders possess strong values of nationalism and social justice, practicing reality-based politics in the nation’s interest. If I am not nominated for a ticket by the BJP, I will remain loyal to the party,” Mr. Singh added.
He also highlighted several unity-focused projects initiated by the BJP government, mentioning that a Unity Mall featuring stalls from all ethnic groups in the state will be constructed with an investment exceeding ₹140 crores.
Film producer Allu Aravind, also father of Pushpa 2 actor Allu Arjun, on Wednesday announced financial support totalling Rs 2 crores for the eight-year-old boy injured in the December 4 Sandhya Theatre stampede.
The unfortunate incident, which occurred during Allu Arjun’s visit to the theatre for a Pushpa 2 premiere, claimed the life of the boy’s 35-year-old mother. Allu Arjun is now facing charges in the case, and was questioned by police on Tuesday regarding his involvement.
Reportedly, the veteran producer along with Dil Raju and others, visited the private hospital where the boy injured in the stampede is being treated. After consulting with the doctors, Allu Aravind expressed relief upon learning that the boy is recovering and is now able to breathe independently.
Speaking to the media, Allu Aravind said that the boy, Sri Teja, is recovering, and is not on a ventilator. He added that to support the family, they should support him with Rs2 crore: Rs 1 crore by Allu Arjun, Rs 50 lakh by Mythri Movie Makers, and Rs 50 lakh by director Sukumar. He further mentioned that they will give this money through Telangana Film Development Corporation Chairman Dil Raju.
When questioned if he had visited the boy’s family, Aravind explained that he cannot interact with the family due to the legal problems. With the police permission, once, 10 days back, he visited him. He was then recovering, he continued.
Meanwhile, producer and Telangana Film Development Corporation (FDC) chairman Dil Raju also addressed the media, stating that there is a meeting planned tomorrow with Chief Minister Revanth Reddy, and they have taken an appointment. He added that they have invited most of the prominent members of the industry.
Earlier on Tuesday, the father of the eight-year-old boy injured in the December 4 stampede during the screening of Pushpa 2 said that the boy has shown improvement and is now off oxygen and ventilator support. He added that while the boy’s condition has improved, full recovery will take time, according to doctors.
He further shared that he received a Rs 10 lakh cheque from Pushpa star Allu Arjun, along with additional assistance from the film’s production team and Telangana Cinematography Minister Komatireddy Venkat Reddy.
Speaking about his willingness to withdraw the complaint, he clarified that he received support from Allu Arjun’s team the day after the incident and emphasized that there was no pressure on him to drop the case.
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