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The Chinese government is imposing severe restrictions on their tech companies — whether it is on data security, marketing practices or floating an IPO. Should this be music to the ears of Indian start-ups and home-grown private equity (PE) funds?
Ask Indian start-ups and the answer is a resounding “yes”. But ask the domestic PEs whether they see a shift in allocation of money by their institutional investors and high net worth individuals (HNIs) from China to India and the answer is a resounding “no”.
But caution about investing in China is clearly visible. At the macro-level, the yawning gap in PE investments between India and China has narrowed (see chart).
