On June 29, 2020, the Indian government banned a total of 59 Chinese apps, citing national security concerns. The move caused a stir internationally, as some of the banned apps were immensely popular in India and had a significant user base. TikTok, one of the most downloaded apps worldwide, was among the banned ones, along with other apps such as WeChat, Helo, and CamScanner.
The ban was imposed amid growing tensions between India and China over the border dispute in Ladakh. The Indian government stated that these apps had been engaging in activities that were detrimental to India’s sovereignty and integrity, defense, and security. While the ban was received with mixed reactions, it certainly had many significant consequences that impacted users, businesses, and the app economy in India.
The Effects on Users
TikTok’s ban had the most direct impact on users, as the app had an enormous following in India. The app had over 200 million users in the country, with creators, influencers, and users alike making a living through the app. The ban came as a shock to many, who were left wondering what their next move would be. Many creators and influencers had built their careers on the app, and the ban threatened their livelihoods. While some creators have moved on to other platforms, others have struggled to find an audience or make money elsewhere.
Apart from TikTok, some other banned apps were also popular among users. These included apps like Shareit, UC Browser, and CamScanner, which had millions of users in India. With these apps gone, users had to find alternatives that provided similar functionality. While some existing apps, like Google Drive, could replace CamScanner, Shareit, and UC Browser’s alternatives were harder to come by. This meant some users had to find workarounds like using Bluetooth to transfer files and installing extensions to access blocked websites.
The Impact on Businesses
While the ban had an immediate impact on app-based businesses, the ban’s ripple effects were far-reaching. Many Indian businesses relied on TikTok to promote their products or services, and the app provided an opportunity for businesses to reach a vast audience. With TikTok gone, businesses had to find other ways to get their message out.
Some businesses turned to other social media platforms like Instagram, Facebook, or YouTube, while others tried to build their own apps. But the transition wasn’t easy, and many businesses saw a significant drop in their engagement metrics after TikTok’s ban. Additionally, app-based startups and companies that relied on Chinese capital or apps to function saw their plans disrupted, with some even shutting down.
The App Economy in India
The ban’s impact on the app economy in India was significant, given that Chinese apps had a dominant presence in the Indian market. With the ban, Indian companies saw an opportunity to fill the void left by these apps. Several local apps, like Mitron, Roposo, and Chingari, emerged as alternatives to TikTok. These apps saw a massive surge in downloads, but the question remains: can they sustain the momentum?
Moreover, with the Indian government increasing scrutiny on apps with Chinese investment or links, companies with such connections are starting to feel the heat. The Indian government’s recent decision to ban 118 additional apps, including popular games like PUBG and WeChat Work, only adds to the uncertainty in the app economy.
Conclusion
The ban on 59 Chinese apps had far-reaching effects that impacted users, businesses, and the app economy in India. While some alternatives to Chinese apps have emerged, the long-term sustainability of these apps remains to be seen. The ban has also raised questions about data privacy and national security, with the Indian government taking a more proactive stance on apps with Chinese investment or links. As the app economy in India continues to evolve, it will be interesting to see how Indian companies respond to the changing landscape, and whether they can fill the void left by their Chinese counterparts.
