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.
Prime Minister Narendra Modi on Monday took a metro ride along with Gujarat Chief Minister Bhupendra Patel from Section 1 Metro Station to GIFT City Metro Station after inaugurating the second phase of the Ahmedabad Metro Rail project.
Apart from Gujarat Chief Minister Patel, Prime Minister Modi was also accompanied by Governor Acharya Devvrat. During the metro ride, PM Modi also took the opportunity to interact with the youth of the state.
In his post on X, PM Modi shared pictures of him travelling in the metro and interacting with the youth. He said: “Inaugurated Phase-II of the Ahmedabad Metro Rail Project and on the way to today’s programme with energetic youngsters.”
The Phase-II project of the Ahmedabad Metro Rail will establish a 21 km route connecting the Narendra Modi Cricket Stadium in Motera to Gandhinagar Sector 1, incorporating eight stations.
This extensive project, completed at an approximate cost of Rs. 5,384 crore, will integrate key destinations such as Gujarat National Law University, Pandit Deendayal Energy University, GIFT City, and more.
Following the inauguration of the second phase, the Ahmedabad Metro Rail network will span 68 km across two lines, the north-south corridor and the east-west corridor, encompassing a total of 54 stations, including four underground stations. The first phase, officially opened by the Prime Minister in 2022, comprises a 33.5-km-long north-south corridor with a travel duration of 65 minutes and a fare of Rs 35.
Today, PM Modi is set to unveil the nation’s inaugural Vande Bharat Metro, now renamed as the Namo Bharat Rapid Rail. This futuristic train system is designed to enhance connectivity between Bhuj and Ahmedabad, covering a distance of 359 km in just 5.45 hours.
For the general public, regular metro services are scheduled to commence from Ahmedabad on September 17, with the entire journey priced at Rs 455.
It is noteworthy that PM Modi recently visited his home state for the first time following the Lok Sabha polls, engaging with the beneficiaries of the ‘PM Surya Ghar: Muft Bijlee Yojna’, a scheme offering free electricity, in Gujarat’s Gandhinagar.
After the rape and murder of a junior doctor at Kolkata’s RG Kar Hospital more than a month ago, West Bengal Chief Minister Mamata Banerjee who held several meetings with the junior doctors to resolve the issues, has now invited a delegation of doctors for a meeting for the last time at her residence at 5 pm on Monday.
A communication has been dispatched to the junior doctors confirming, “This being the fifth and final attempt to engage with you, we invite you once more to a meeting with the Honorable Chief Minister at her residence in Kalighat for open discussions, continuing our previous dialogue.”
In contrast, the doctors have consistently sought live streaming of the meeting, as a means to bring transparency to the proceedings.
The doctors emphasised the need for live streaming to keep the public informed about the meeting proceedings, highlighting the validity of their five demands and the unwavering support they have garnered from the public for their apolitical stance and resilience against governmental pressures.
Should their demands be disregarded, the doctors expressed reluctance to participate in a meeting. As the junior doctors persist in their protest at Swasthya Bhawan in Salt Lake, the Tala Police Station in-charge, Abhijit Mondal, has undergone a medical examination at the CBI Office in Kolkata.
In response to the disruptions in health services, Chief Minister Mamata Banerjee revealed on September 13 that 29 individuals had lost their lives. To assist affected families, the state government announced a symbolic financial relief of Rs 2 lakh for the family members of each deceased person.
During a visit to Swasthya Bhawan on Saturday, Banerjee engaged with the protesting doctors, assuring them of imminent action on their demands and accountability for those responsible, expressing personal distress over their plight during the rainy protest.
The doctors continue their protest against the heinous rape and murder of a trainee female doctor at Kolkata’s RG Kar Medical College and Hospital, with the tragic incident occurring on August 9 within the seminar hall of RG Kar Medical College and Hospital.
BJP calls Arvind Kejriwal’s resignation announcement a PR stunt, says he wants his wife as CM
“The emotional and PR cards that he is playing is aimed at creating a Manmohan Singh-like system in Delhi as former Congress president Sonia Gandhi did,” the BJP leader charged.
The BJP on Sunday called the announcement of resignation of Delhi Chief Minister Arvind Kejriwal in the next two or three days a PR stunt saying his decision is a part of his plan to make his wife Sunita the CM.
BJP national spokesperson Shezad Poonwalla claimed that Kejriwal is enacting the resignation drama because the court did not acquit him in the excise policy scam case and instead granted him a conditional bail, which turned him into a ceremonial minister from the chief minister.
The AAP national convenor on Sunday announced that he will he resign as the Delhi CM in next two days and would demand early polls in Delhi. Kejriwal vowed not to sit in CM’s chair till people give him a certificate of honesty.
In a scathing attack, Poonwalla alleged that the AAP national convenor’s announcement is a part of his plan to make his wife Sunita Kejriwal the Chief Minister. “Arvind Kejriwal has done a PhD on how to make a virtue out of necessity,” he added.
While addressing party workers in Delhi today, Kejriwal said he would hold a meeting of AAP MLAs in the next couple of days and a party leader would take over as chief minister.
Hitting out at the Delhi Chief Minister, Poonwalla said, “He has taken two days’ time because his entire plan is to make his wife Sunita Kejriwal chief minister of Delhi in his place.”
“The emotional and PR cards that he is playing is aimed at creating a Manmohan Singh-like system in Delhi as former Congress president Sonia Gandhi did,” the BJP leader charged.
In the recently concluded Lok Sabha polls, people ensured the defeat of the AAP and the Congress in all seven seats despite the Kejriwal-led party’s ‘jail ka badla vote campaign’, he added.
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