Industry watchers feel larger apps - given their familiarity among users and the speed at which they can bring in new features to engage users - may position them better against the homegrown apps. Besides, the players will have to be cognizant of data privacy rules. There may be areas that the current policy framework does not address.

Previously, China has expressed strong concern about the ban, which could hurt expansion plans and cost jobs, and said it may violate World Trade Organization (WTO) rules. None of the Chinese companies has yet mounted a legal challenge, with industry sources saying they were waiting for further clarity from the Indian government.

The government on June 29 banned 59 apps with Chinese links, including hugely popular TikTok and UC Browser, saying they were prejudicial to sovereignty, integrity and security of the country.