TikTok and AliExpress Set to Return to India: Impact on Stock Market and Businesses
New Delhi, August 23, 2025 – In a major development for India’s digital economy, short-video platform TikTok and e-commerce giant AliExpress are reportedly making a comeback in the country after more than four years of being banned. The move is expected to reshape India’s social media and online retail landscape, while also creating ripples in the stock market.
Why Were TikTok and AliExpress Banned?
In June 2020, the Indian government banned TikTok, AliExpress, and several other Chinese apps citing national security and data privacy concerns. TikTok had emerged as one of the most popular apps in India, with over 200 million users, while AliExpress had gained traction among online shoppers looking for affordable imports.
What Does Their Return Mean for Businesses?
- Social Media & Advertising: TikTok’s comeback could intensify competition for Meta (Facebook, Instagram), YouTube Shorts, and homegrown apps like ShareChat’s Moj and Josh. Brands may diversify ad spending across platforms, boosting digital marketing activity.
- E-commerce Competition: AliExpress may put pressure on players like Amazon India, Flipkart (Walmart), and Meesho, especially in the affordable consumer goods segment.
- Startups & MSMEs: Local sellers could gain new opportunities to showcase their products globally through AliExpress’ marketplace model.
Impact on Indian Stock Market
The return of these platforms is likely to impact several listed companies:
- Zomato, Nykaa, Paytm – E-commerce players may face increased competition.
- Info Edge (Naukri, investment in startups) – Exposure to startups competing with TikTok and AliExpress may influence investor sentiment.
- Tech & Telecom Stocks (Reliance Jio, Bharti Airtel) – Higher data usage from TikTok could benefit telecom operators.
- Media & Entertainment companies – Platforms like Zee and Sony may feel the heat as advertisers reallocate budgets to short-video platforms.
Market experts believe digital and telecom stocks could see short-term gains, while e-commerce shares may face pressure due to fears of market share erosion.
Government’s Conditions
Reports suggest the Indian government may impose strict data localization rules, Indian partner tie-ups, and compliance with new IT guidelines before granting approval. This could ensure better oversight and address security concerns raised earlier.
The Road Ahead
If TikTok and AliExpress successfully relaunch, India’s $100+ billion digital economy could see a new growth wave. However, existing players in both social media and e-commerce may have to innovate aggressively to defend their turf.
However, Government Denies TikTok Unblocking Reports, Calls Such Claims “False and Misleading”
The Government of India has officially denied reports suggesting that short-video app TikTok could be making a comeback in the country.
In a clarification issued on Friday, government sources said, “No order has been issued to unblock TikTok. Any such statement or news is false and misleading.”
The clarification comes amid widespread speculation on social media and certain unverified reports claiming that TikTok was preparing to re-enter the Indian market.
TikTok, owned by Chinese tech giant ByteDance, was among the 59 Chinese apps banned by the Indian government in June 2020 over national security and data privacy concerns. The app, which once enjoyed immense popularity in India with over 200 million users, has remained banned since then.
Despite multiple rumors in recent years about a possible return, the government has consistently maintained its stance on national security and has not given any relaxation on the ban.
Market analysts say these unverified reports often trigger speculation in related sectors, but Friday’s clarification by the government puts an end to such rumors for now.
