“By the feel of things, it is evident that the border issue would simmer further and economic warfare would be a critical weapon in the government’s armoury. Even before this incident, FDI investments from China were moved to approval route which itself is bound to have some impact. India had substantial FDI inflow in e-commerce and China was at the forefront through its investments of around 3.6 bn USD in PayTm, Dream 11, Big basket etc. Yes there would be an immediate hit to the FDI flows from the region but in the long run, these flows would be substituted by other countries especially the US. However, the larger concern for China is the huge trade surplus (excess of 60bn) it enjoys with India which could be in jeopardy” said Mr. Divakar Vijayasarathy, Founder & Managing Partner, DVS Advisors LLP.
