Editor's note: Azhar Azam works in a private organization as a market and business analyst and writes about geopolitical issues and regional conflicts. The article reflects the author's opinions, and not necessarily the views of CGTN.

As talks between senior military leaderships of China and India resumed at Chushul in Ladakh to reduce border tensions and discuss the modalities of disengagement along the Line of Actual Control (LAC), the decoupling political efforts by New Delhi may sabotage the crucial dialogue to defuse volatile situation in the region.

Watershed remarks, "Nobody has entered our borders or captured our posts," by Indian Prime Minister Narendra Modi should have undone the qualms about alleged Chinese intrusion in the country's territory and handed out an opportunity to prevent the spread of skirmish into economic war but unfortunately, India is going the way.

When all eyes are on the border military clashes, the Indian technology ministry suddenly issued an order to ban nearly five dozen Chinese apps including the popular TikTok, social networks Helo and Likee, news aggregator Newsdog, trendy UC browser, online apparel retailer SHEIN, one of the world's largest standalone mobile apps WeChat and the fastest cross-platform SHAREit – claiming that they were engaged in activities "prejudicial to sovereignty and integrity" and defense, security and public order in India.

The top ministers also reportedly considered, as a harbinger, to possibly restrict Chinese tech behemoths like Huawei and ZTE from participating in India's 5G network rollout. Auction of high-speed 5G spectrum in India has been delayed by at least a year as the South Asian nation is fastened with the COVID-19 pandemic.

Even though the two countries were making arduous attempts to fend off the standoff and reach on a unanimous consensus following Indian military incursion in the Galwan Valley, resulting in a clash between the two armies, the grinding steps would derail the growth of Indian business starters that were trying to manifest their worth in the international technology circuit.

Chinese companies have played a critical role in setting up the Indian startups. While Gateway House, a Mumbai-based think tank, estimated that roughly 18 out of the total 30 Indian unicorns were cruising through investment from Beijing, the slew of needless measures that can pierce investors' faith and force them to suspend their financing in India, impeding the evolution of the domestic companies.

India's encroachment of the rights of international firms not only shocked millions of users but also disappointed several businesses that were making connections through these Chinese apps.

In experts' belief, it was a "purely political move" and "payback for the claimed border violations and recent violent conflict," confounded the contention that China's companies by any means posed any threat to the sovereignty and integrity of the Union.

The Modi administration indeed does not want to suffer any bellyaches in the form of dried up investment, which could be emanated from holding up investment by investors from the second-largest economy in the world over rising uncertainty. That is why it has tacitly excluded Ant Financial, which backs 16-billion-U.S.-dollar payment giant Paytm and Tencent, upon which Edtech Byju relies for funding.

Clearly, the ruling BJP is striving to keep the "battle" with China limited and would look further to cool off the media-fueled wild nationalistic sentiments by showing up its calculated rage toward Beijing. But the gerrymandering of foreign investment to achieve political mileage would be horrendous for the fast-dropping Indian economy.

Foreign investors necessitate a favorable and healthy environment and guarantee that could ensure the protection of their long-term investment. The manipulation of their interests by the government can shake up their confidence severely and urge them to pull out current and planned Chinese investments of more than 26 billion U.S. dollars and could potentially throw a chill wave of panic among other investors from the world.

Since March, the COVID-19 situation has bottled-up the Indian health sector and put economic activities on halt over the countrywide lockdowns. After Modi sought help from people across all walks of life to contribute generously in the PM CARES (Citizen Assistance and Relief in Emergency Situation) Fund, the Chinese companies operating in India have immediately extended their unreserved support to culminate the social anxieties.

Responding to Modi's call, the now-banned TikTok in April donated about 40 million U.S. dollars and other Chinese companies including Xiaomi, Huawei, Oppo and OnePlus also provided a total of nearly 19 million U.S. dollars collectively.

In return, they are smothered by New Delhi for political catalysts that set an infelicitous pattern of targeting specific firms, which could bully more companies other than Beijing's in the future and force the existing one to retrench their investment.

A legal advisor to Chinese companies warned if the order is not reversed, it could tempt the aggrieved firms to cut back their operations, causing loss of employment to India. Many TikTok users also expressed their displeasure on the blacklisting.

Though Paytm founder Vijay Shekhar Sharma lauded the ban, Alibaba's exuberant share – 40 percent in the app's parent organization, One97 Communications – accentuated how reliant the digital payment startup was on Chinese firm. Native industry overall too is fearful of the dissolution of opulent investment from Beijing.

ByteDance's TikTok is the first Chinese tech company to emerge as the major Facebook competitor. This miraculous growth pushed Mark Zuckerberg, the founder and CEO of the mega social media company, to reportedly admit that the social video sharing platform was doing well with "young folks" in the U.S. and around the world.

Hurun Global Unicorn List 2019 found that China had bested the U.S. by the total amount of 206 to 203. While the "Big Four" – China, the U.S., India and the UK – made up a staggering 90 percent share, Chinese Ant Financial, ByteDance and ride-hailing service Didi Chuxing grabbed all the three top positions, with valuations of 150 billion U.S. dollars, 75 billion U.S. dollars and 55 billion U.S. dollars respectively.

Two of the top three Indian unicorns, One97 Communications (with a net worth of 10 billion U.S. dollars) and Byju (6 billion U.S. dollars), that are drawing investment from Alibaba and Tencent, were also in the listing.

This, alongside the revelation that more than 99 percent of Xiaomi smartphones (and TVs) sold in India are manufactured locally, showed Chinese companies have greatly supported to develop and expand the native industry.

If not reviewed, the blanket injunction on Chinese apps and manufacturing companies could have broader implications for the long-contemplated Indian economic and technological growth.

The potential back-flight of investment would accelerate the melting-pace of the Indian economy, worsening job outlook amid a global stagnation as well as shatter the "Make in India" campaign. Revision and revocation of the divisive order hence remain the only viable solution for New Delhi.

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