India has banned 232 betting and loan lending apps and websites, many with links to China, on the basis of “national sovereignty and integrity” and concerns over the practices of these apps, including high interest rates and aggressive bad loan recovery practices.
The ban is a latest illustration of the risks for Chinese tech companies doing business in a market with around 1.4 billion consumers.
India has previously blocked almost 300 China-backed apps since a deadly border clash broke out in May 2020. This includes the popular short-video app, TikTok.
India is tightening its regulation of the country’s digital lending sector, which is expected to grow from $270 billion in 2022 to more than $1 trillion by 2030.
The ban raises questions about the future of Chinese-linked apps in India, with China Daily reporting that “business with China may not return to normal until trust is repaired.”
China, on the other hand, maintains tight control over its cyberspace via the Great Firewall and has cracked down on online lending schemes and loan apps for financial stability reasons.
The Indian central bank has reported that almost half of the online loan apps available in the country were operating without authority.
The ban includes non-Chinese and local Indian firms, with the websites of several local services being taken down as part of the ban.
