What is the significance of Indian ban on Chinese mobile apps ?

Indian government on Monday i.e. 29th June 2020 banned almost 59 Chinese apps stating those are prejudicial to sovereignty and integrity of India, defense of India, security of state and public order.

In an unusual move by the government of India, it banned 59 Chinese mobile apps in India, in the backdrop of tensions on the India-China border in Ladakh. Thought it is very hard to understand what might have gone into this decision but it is safe to say "the decision sounds childish". If there was any existential threat from these apps, they would not have been allowed to start, even today the Government of India has an account on TikTok with millions of followers. Is this also a case of hasty decision making on the part of the Modi government or more of optics for the domestic audience who is expecting the government to face up to china? We will have to see the next steps to find out.

If the government of India is seriously considering to reduce Chinese investment that is already deeply ingrained into the Indian startup ecosystem with multiple unicorns backed majorly by big Chinese investors like Alibaba and Tencent etc. then this move will make some sense as it would be a signal or posturing for what's next to come but if in case this is just a hoax, India would do itself more harm than good. In fact, before 2014 India had a clear strategy for Chinese investments, there wasn't much to begin with. China was more of a supplier of goods for the Indian market but since 2014, Chinese companies have poured in a lot of Foreign Direct Investment (FDI) and setting up shops here. The Indian mobile handset industry is a classic example, it is filled with Chinese brand like Xiaomi, Oppo, Vivo etc. These companies have set up assembly plants in India for local distribution. This is under perfectly legal route encouraged by the government of India. So why this recent deviation from the strategic policy?

While the Chinese investment primarily started pouring into the Indian market post 2014 when some restrictions on Chinese investment in India put up by the then Dr. Manmohan Singh government, which considered China as a strategic competitor, were lifted by the new Modi government. The "Make in India" program by the government of India acted as a major facilitator for the Chinese investment to come in, like the Chinese mobile handset brands. Today China is present in India's major infrastructure, rail and technology sectors controlling major share of the Indian market. If India wanted to strategically reduce Chinese investment it would have to rework it's whole foreign and economic policy for China. Banning Chinese mobile apps sounds like a silly decision. Almost like two children getting into a fight while playing cricket and the one who owns the equipment gets up and walks off.

We also need to wait and see what would be the retaliatory action by the Chinese side, if any on this trivial action by the Indian government. Incidentally the Indian government also accepted heavy amounts of money for the PM Cares fund from the same Chinese companies few weeks ago. The opposition has been asking tough questions of the government for its flip-flop and sidestepping the questions on national security. In fact, it has become a fighting issue between the two major political parties in India from being an India-China border issue.

Conclusion:

India needs to show some strategic thinking and not resort to this childish behaviour. Banning Chinese apps is not going to have any strategic effect on the bilateral relationship. China has already secured its position in major Indian unicorns and the overall startup ecosystem. It has also become a major player in infrastructure, rail and technology sectors in India. In fact, the "Digital India" program is totally "Made in China." Indian smartphone market is controlled by major Chinese brand like Xiaomi, Oppo, Vivo etc. If India wants self-reliance, it will have to devise a strategic economic and foreign policy with respect to China. These kinds of optics to please domestic audience isn't going to help.