Antagonism Between India And American Tech Companies, Will India’s Hopes of Becoming Tech Hub Compared to China Be In Deep Water?

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New Delhi, 15th June 2021: The conflict between India and America’s top-notch tech companies has been going on for a long time. The dispute is about the new IT laws of the central government, which is skyrocketing. Due to this, especially those American firms which spent billions of rupees to set a foothold in India, the emerging market of the world, have been disillusioned with India. Such American companies are reconsidering the expansion of ongoing plans in India.

According to the News Agency Reuters’ news, on the ongoing dispute between the Indian Government and Twitter, the Government of India says, “Twitter has not indicated the compliance of new IT rules, which make social media liable to legal complaints. In such a situation, Twitter may lose the liability exemption on its platform’s posted content. At present, Twitter, Amazon, Facebook, WhatsApp and India’s Ministry of Communications and Information Technology haven’t said anything in this matter.

An official familiar with the matter said, “Such an environment can affect both investment strategy and operations.”

According to another official, there is no indication of delay or nullification of investment. However, the perception of India as an alternative in comparison to China may change. Thus, the long-term investment plans can be reviewed. In such a situation, the plan of making India an American companies’ hub in comparison to China may get a shock.

The government’s argument is that the new IT rules have been brought to stop the spread of fake news.

In 2007, a kidnapping message went viral on WhatsApp, after which the lynching incidents started. Along with this, the new rules have been brought to prevent harm to the customers’ privacy and domestic business.

India is a huge market for American tech companies. The maximum number of users of Facebook, WhatsApp and Twitter are from India. Amazon has announced to spend $6.5 billion in India. Facebook has announced an investment in India with Reliance Jio for small business. Same as Google has talked about investing $10 billion in the next 7 years.

Apart from this, Indian Government is forcing foreign farms to store local data and to design domestic payment card networks. However, the new rules of the Indian Government are being an eyesore to American tech companies. Twitter has rejected the Indian government’s demand to remove the content. On the same page, WhatsApp had moved to the court regarding new laws.

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