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The chinese giant multinational company Alibaba hits a pause on fresh investments in India. The officials from the chinese MNC announced a stop in any further investments in India for atleast a period of six months. The Alibaba group was about to invest 1.8 billion USD in the budding Indian Startups. This comes after the recent actions taken by Indian Government following the Galwan Valley skirmish in which twenty unarmed Indian soldiers were martyred in Galwan Valley (located at an altitude of 14000 fts) on 15th june.

Subsequently, this led to protest throughout the country and as a result of which the Indian Government took vigorous step of putting a hault on as many as 175 foreign direct investments.
The Alibaba group has invested more than 2 billion USD in Indian startups since 2015. The MNC has a 30% stake in India's largest digital mobile payment platform- PayTM. They are also known to invest in startups like Zomato and BigBasket. However, they do not plan to dilute their existing stake. Officials from Alibaba group argued that the reason behind freezing further investments is the recent change in FDI rules and foreign policies of India.

Why ammendments in FDI?
The Foreign Direct Investments have been ammended for all countries sharing border with India. Earlier, it was meant only for Pakistan and Bangladesh. New policies mandate that all investments from border sharing nations must be cleared by the Indian Government. The chinese officials stated that India had violated Bilateral Investment Territories (BITs) under WTO agreements. Reacting to above accusations, the Indian officials said that the BITs aren't violated but terminated as done with Pakistan and Bangladesh. However, the investment routes to all other nations remain open. The sole purpose the move was to restrict chinese firms from taking over the budding Indian startups in future.


The outcomes depend on the perspective of thinking. If we observe proximately, the investment of 1.8 bn usd from alibaba group is haulted. This means there will be no fueling of budding startups. Less startups means less job opportunities and unemployment on short terms. 
The rise in unemployment for short period of time is okay but the scenario changes when the country is hard hit with a pandemic!
 The economy is starving and one cannot think of eliminating the new job opportunities. Thus, this can turn out to be a huge loss to both countries. 
Now , if the perspective is changed to distant outcomes, it is very clear that the move will attract investors from other countries to invest in Indian startups. Eventually, it will allow India to stop the aquiring of Indian firms by chinese associates. This means China will loose control over the Indian market. 
Therefore, either the conflicts should be resolved to restore trade relations or investors from other nations should be invited to boost struggling startups and create job opportunities.

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