Chinese companies has quickly moved to launch mobile applications directly in India to capture the rapidly swelling next generation of internet users—a demographic global and Indian internet companies too are chasing. Several of these Chinese apps have catapulted to the top in India across categories such as entertainment (Tik Tok, Vigo Video), news (UC News, NewsDog), shopping (Club Factory, Shein), as well as browsers and data sharing (UC Browser, Shareit).
Indian spent Higher time on Mobile internet approx 28 hours in an week. Mobile data usage has jumped to 144% YOY. In tier 2 cities and beyond, the use of apps that let consumers make short videos or edit images simply and share them is catching on fast. Many of the Chinese apps have been able to cater to this.For these Chinese companies, the attraction of a large market, several untapped use-cases for non-metro consumers, and a growing internet base are good enough to place big bets in India.
Alibaba’s UC Browser has crossed 130 million monthly active users in India, catering mainly to non-metro consumers. Its users in India constitute 30% of its 430 million monthly active users globally. Damon Xi, general manager for India and Indonesia, UCWeb, said UC Browser focuses on non-metro users and UC News on users in metro cities.For several lending startups from China, India seemed a green pasture after business dried up at home following a crackdown by Chinese authorities on pay-day lending. ET reported earlier this year how several lending startups such as WeCash and FinUp were setting up operations in India.
However, challenges abound for these Chinese companies in India, especially in traversing the gamut of languages while also dealing with a regulatory shadow over data security concerns in entering the India market. The proposals of the draft eCommerce policy and the draft data protection bill, if implemented, could also prove troublesome for these Chinese entrepreneurs chasing markets in India. Chinese app makers have had to face tougher hurdles in India. Last year, the Indian Ministry of Defence ordered the Armed Forces to uninstall 42 Chinese apps that it had classified as spyware. Among these apps were UC Browser, UC News, NewsDog, Shareit, Weibo, WeChat, and NewsDog. Smartphone Xiaomi, with which NewsDog has partnered for sharing content, asked the company to prove that its data was not being shared outside India .
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Movers & Shakers
India Is on Top Spot in Growth Among Peers !
India will claim the top spot among the world's fastest-growing major economies this year. Though rising trade tensions between the United States and China may restrain that growth, But as of now chances are Less.
Though in the short-term a trade war between US and China may impact global trade including India, in the long-term, India is likely to benefit as China will be forced to devaluate its currency to remain a dominant player in the world market.For the next fiscal year, growth is expected to average 7.5 percent, a touch lower than the IMF's forecast of 7.8 percent.
After growth slowed sharply for much of last year, India regained its status as the world's fastest-growing major economy in the quarter ending December 2017. The slowdown was mainly driven by the government's sudden decision in November 2016 to scrap high-value currency notes and a botched implementation of a goods and services tax (GST) in July last year. While India's retail inflation has eased this year and hit a five-month low in March, it remained above the Reserve Bank of India's medium-term target of 4 percent. But increased government spending ahead of national elections next year is yet to kick in and that is expected to be inflationary. Inflation is forecast to average 4.7 percent in the fiscal year ending next March, and 4.9 percent the following year.
India Meteorological Department has forecast a normal monsoon in 2018 - a boon for the farm sector that accounts for about 15 percent of India's $2 trillion economy and employs more than half its 1.3 billion people. A normal monsoon would boost grain production and keep a lid on food price inflation, which tends to be volatile, but especially in India. The Reserve Bank of India has kept interest rates steady after a 25 basis-point cut to the repo rate in August last year. It is forecast to keep rates on hold until the second half of next year.
New BankInsolvency and Bankruptcy Code Approved By Govt.
Cabinet approved to amend the Insolvency and Bankruptcy Code, to prevent wilful defaulters from bidding for stressed assets.The finance ministry had earlier asked banks to ensure that wilful defaulters were prevented from buying same stressed assets as Some owners are reported to be getting ready to stake a claim for these assets when they are put up for sale by the creditors.
The IBC sent the message to big companies that default is a dangerous situation to be in. But promoters wresting back control of entities after banks take a big haircut would be politically very controversial and an influential section in the government is keen to prevent this from happening. The Ministry of Corporate Affairs is closely looking at the pros and cons of the issue as a number of cases have been taken up for resolution. The changes may be introduced as early as the next session of Parliament.
The Insolvency and Bankruptcy Board of India (IBBI) has recently amended regulations governing corporate insolvency resolution process to ensure that antecedents, credit worthiness and credibility of a resolution applicant, including promoters, are taken into account by the Committee of Creditors.The IBC is one of Prime Minister Narendra Modi's biggest reforms.