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.
PM Modi assures no discrimination in women’s quota, delimitation debate intensifies in Parliament
PM Narendra Modi has assured that women’s reservation will be implemented without discrimination, amid a heated debate over delimitation in Parliament.
Prime Minister Narendra Modi has assured that there will be no discrimination in the implementation of women’s reservation, as Parliament witnessed a sharp debate over the proposed linkage between the quota and delimitation exercise.
During the ongoing special session, the government reiterated its commitment to ensuring fair representation while addressing concerns raised by opposition parties regarding the timing and structure of the legislation.
The proposed framework aims to reserve 33 percent of seats for women in the Lok Sabha and state assemblies. However, its implementation is tied to a fresh delimitation exercise, which is expected after the next census.
Opposition questions timing and intent
Opposition leaders have raised concerns that linking the women’s quota to delimitation could delay its implementation. They argue that the process of redrawing constituencies may push the actual rollout further into the future.
The issue has triggered a broader political confrontation, with multiple parties questioning whether the move could alter representation across states.
Some critics have also alleged that the delimitation exercise could disproportionately benefit certain regions based on population, a charge the government has rejected.
Government reiterates commitment to fair implementation
Responding to these concerns, the Centre has maintained that the reforms are necessary to ensure accurate and updated representation based on population data.
Leaders from the ruling side have repeatedly emphasized that the process will be carried out transparently and without bias. The assurance that there will be “no discrimination” is aimed at addressing fears among states and opposition parties.
The debate marks a key moment in Parliament, with both sides engaging in intense exchanges over one of the most significant electoral reforms in recent years.
Give all tickets to Muslim women, Amit Shah says, attacking Akhilesh Yadav on sub-quota demand
A sharp exchange between Amit Shah and Akhilesh Yadav in Parliament over sub-quota for Muslim women highlights key divisions on women’s reservation implementation.
A heated exchange broke out in Parliament during discussions on the women’s reservation framework, with Union Home Minister Amit Shah and Samajwadi Party chief Akhilesh Yadav locking horns over the demand for a sub-quota for Muslim women.
The debate unfolded as the government pushed forward key legislative measures to implement 33% reservation for women in the Lok Sabha and state assemblies.
Akhilesh Yadav argued that the proposed reservation must ensure representation for women from marginalised communities, including Other Backward Classes (OBCs) and Muslim women. He said that without such provisions, large sections could remain excluded from political participation.
He also questioned the timing of the bill, alleging that the Centre was avoiding a caste census. According to him, a census would lead to renewed demands for caste-based reservations, which the government is reluctant to address.
Government rejects religion-based quota
Responding to the demand, Amit Shah made it clear that reservation based on religion is not permitted under the Constitution.
He stated that any proposal to provide quota to Muslims on religious grounds would be unconstitutional, firmly rejecting the idea of a separate sub-quota for Muslim women within the broader reservation framework.
The government has maintained that the existing framework already includes provisions for Scheduled Castes (SC) and Scheduled Tribes (ST) women within the overall reservation structure.
Wider political divide over implementation
The issue of sub-categorisation within the women’s quota has emerged as a major flashpoint, even as most opposition parties broadly support the idea of women’s reservation.
Samajwadi Party leaders reiterated that their support for the bill depends on inclusion of OBC and minority women, while the government continues to defend its constitutional position.
The debate is part of a broader discussion during the special Parliament session, where multiple bills linked to delimitation and implementation of the women’s quota are being taken up.
No state will lose a seat, Centre assures as delimitation debate takes centre stage in Parliament
Parliament’s special session begins with key focus on implementing women’s reservation and delimitation, setting the stage for major electoral changes.
A special session of Parliament commenced on Thursday, with the Centre set to take up crucial legislation related to women’s reservation and delimitation of constituencies. The session, scheduled over three days, is expected to witness intense debate as the government pushes forward its legislative agenda.
At the centre of discussions is the proposal to operationalise the women’s reservation law, which seeks to allocate 33 percent of seats in the Lok Sabha and state assemblies to women. The law, passed earlier, requires enabling provisions before it can be implemented.
The rollout of the reservation is closely tied to the delimitation exercise — a process that redraws parliamentary constituencies based on updated population data. The implementation is expected only after the next census and delimitation process are completed.
The government is aiming to put in place the framework so that the reservation can be enforced in future elections, likely around 2029.
Delimitation and numbers at play
Delimitation is a key aspect of the proposed changes, as it will determine how seats are redistributed and which constituencies are reserved. The exercise is expected to reflect population shifts and may also involve an increase in the total number of Lok Sabha seats.
This linkage has made the issue politically sensitive, with several opposition parties backing women’s reservation in principle but raising concerns over how and when delimitation will be carried out.
Political reactions and expected debate
The session is likely to see sharp exchanges between the government and opposition. While there is broad agreement on increasing women’s representation, disagreements remain over the timing, process, and potential political implications of the delimitation exercise.
Some leaders have argued that delimitation could significantly alter the balance of representation among states, making it a contentious issue beyond the women’s quota itself.
The government, however, has framed the move as a step toward strengthening women’s participation in governance and ensuring more inclusive policymaking.
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