China is facing a major crackdown in the technology industry which means global investors are taking more interest to give huge market exposure to India.
A statement was given by Sumant Mandal, a managing partner at U.S. venture investor March Capital Partners “China's crackdown on its technology industry means global investors seeking emerging-markets exposure will turn their attention to India”.
Mr. Mandal said in a video interview Investors are now putting more weight on "government risk" as they assess Chinese technology companies. Indian startups in areas such as internet and cloud software offer strong growth prospects but without a similar risk profile, said Mr. Mandal, co-founder of the Santa Monica, California-based firm.
"China's market is of a size and scale that's unmatched," Mr. Mandal said. "But the risk-reward structure around China has changed" and investors from the U.S Europe, Asia, and the Middle East are now looking to balance their portfolios by rerouting investments to their neighbor, he said.
March Capital has a long track record of backing Indian startups and it plans to increase such investments, he said. The global pandemic coronavirus has changed consumer behavior in India, this is a boon for companies who have expanded handling e-commerce and digital transactions.