Source: LiveMint.com, Jul 04, 2018
Bengaluru: The government is preparing a policy framework to regulate foreign investments more closely in internet and smartphone businesses, especially in view of the increasing Chinese presence in these sectors, said three people familiar with the matter.
Government agencies including the defence ministry, information technology ministry and the Telecom Regulatory Authority of India (Trai), besides the Reserve Bank of India (RBI), are working on new policies, the people cited above said on condition of anonymity.
The proposed policies are meant to deal with the increasing digital colonization of India, said the people cited above. The aim is not to stop or restrict foreign investments but to install safeguards that will ensure India’s security is not compromised, they said. This assumes significance as Chinese and American companies either directly control large parts of the internet business or have tremendous influence as investors in local start-ups, even in strategically important areas such as financial services and content.