Military Review

In India, they told how they intend to intercept foreign investment from China and what does the coronavirus have to do with it?

12

The Indian media published a statement on measures to attract foreign investors to the country. In particular, we are talking about projects to create large foreign brands in the Indian territories of industrial enterprises. The main task is to receive a part of the investments that foreign companies direct today to China, where plants and factories with foreign financing have already been built.


The Indian press reports that "many foreign companies are ready to withdraw production from China in connection with the coronavirus pandemic and Beijing's concealment of data on the real number of infected in this country."

India decided to take advantage of the situation and intercept foreign investment from China. To this end, she made a proposal to invest in projects on her territory, offering cheaper labor than in China. The proposal has already interested some American and Saudi companies, including Saudi Aramco, the largest oil producer. However, until recently, there were problems with the placement of enterprises in India with a foundation in the form of foreign capital. The fact is that it was necessary to slightly amend the legislation and offer foreign investors the allocation of land necessary for their projects with infrastructure.

Having decided that there would be no longer any other chance to “snatch” investments that had been addressed to China lately, the Indian authorities took a special measure. According to the Indian publication The Economic Times, the country's authorities are working on the possibility of transferring the necessary areas of Indian land for long-term use to foreign companies. According to the publication, we are talking about such areas that correspond to the territory of the “two Luxembourgs”. The exact value is named as follows - 461 589 ha.

These are territories that are located in several states of India, including Gujarat, Andhra Pradesh and others.

From the article:

Land has been one of the main obstacles for companies that want to invest in India. Saudi Aramco's plans were frustrated due to delays in the acquisition.

The Saudi company itself said that despite a 20,9% drop in profits (March data), Saudi Aramco will continue to invest in India and will increase it due to the high potential of the Indian market.

Investors, according to the Indian press, seek to reduce their dependence on China as a manufacturing base after the outbreak of coronavirus and, as a result, disruption of supply.

From the material:

Currently, investors interested in setting up industrial production in India must acquire land on their own. The process in some cases delays the project because it involves negotiations with the owners of small plots. Providing land with electricity, water and access to roads can help attract new investments in an economy that slowed down before the coronavirus began to spread.

Directions for investing in transferring to land use were selected: electrical engineering, pharmaceuticals, medical devices, electronics, heavy machinery, solar equipment, food processing, chemicals and textiles, petrochemicals.

Who is in the list of major investors


The main investors are the United States, Saudi Arabia, Japan and South Korea. As you can see, not a single BRICS country is on this list.

This article in a major Indian newspaper itself attracts attention for several reasons.

Firstly, it is noted that problems in the Indian economy (and by and large, in the entire global economy) began to appear even before the news of the coronavirus. Therefore, they are now trying to write off any economic setbacks on coronavirus.

Secondly, it becomes clear Washington’s pressure on Beijing with allegations of silence about the extent of the disease and the concealment of data on the onset of an outbreak of coronavirus. The United States is attempting to withdraw at least part of its production from China with the search for jobs with cheaper labor force and possibly greater political dependence on the United States. At the same time, talk that production from China will be withdrawn exclusively in the United States will probably remain talk.

It remains to find out what measures China is ready to take in order not to lose the multibillion-dollar foreign investment that feeds its economy.
Author:
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  1. Doccor18
    Doccor18 5 May 2020 08: 28 New
    +5
    India could become a competitor
    "world factory". There are prerequisites. Huge population that
    for a penny will work hard for days.
    However, there are so many underwater in India
    stones, problems with the earth,
    terrifying forms of bureaucracy and corruption that China will appear to be a model of order on earth.
    If anyone is interested, you can
    read like South Korean
    POSCO wanted metallurgy
    to do in india. 15 years of ordeals, a lot of money and nerves spent
    and zilch .... Well, what a normal investor will go into
    this "boiler" for the second time ...
    1. Morrrow
      Morrrow 5 May 2020 12: 01 New
      0
      Apple already produces iPhones there
      1. Aleksandr21
        Aleksandr21 6 May 2020 10: 40 New
        0
        Quote: Morrrow
        Apple already produces iPhones there


        Not everything is so simple, in India there are a lot of problems that prevent China from repeating its success:


        Apple failed to launch iPhone 11 outside of China

        The company has become even more dependent on China
        Historically, Apple products were manufactured and assembled mainly in China. Only in recent years, the company began to reduce its dependence on China and began to transfer production lines to other neighboring regions, such as Vietnam. According to new data, the company failed to start production of the iPhone 11 in India, so its dependence on China has only increased.

        Apple planned to transfer the production of at least one iPhone line to Vietnam first, but this idea had to be abandoned, as it turned out to be too complicated to implement. Then the Cupertino-based company planned to start manufacturing the iPhone 11 in India. This would be a significant change in Apple’s policy, since in this case the iPhone’s flagship would be made outside of China for the first time, but Apple abandoned this plan and stopped all work immediately before the opening of the production line in India. According to a source close to the company, India turned out to be an inappropriate country because it did not have enough skilled workers and the infrastructure that Apple required.

        So the iPhone 11 is still going to China, where due to the outbreak of the coronavirus there are disruptions in the supply of equipment and the production dates for new smartphones are disrupted. So far, the company does not plan to transfer production to other regions.
  2. knn54
    knn54 5 May 2020 09: 05 New
    +4
    The increase in salaries in China led to an increase in the cost of production of goods, which forces foreign investors to seek an alternative to China.
    India has a "dilapidated" infrastructure. A number of protectionist laws. Which, for example, exclude American innovation and intellectual property from the “mainstream" of Indian domestic industry. Tough labor laws.
    In terms of discipline, the Indians are very far from the Chinese.
    Near Indonesia, Vietnam.
    And is India ready for a "deflection"?
  3. Free wind
    Free wind 5 May 2020 09: 09 New
    +5
    China itself is already a major investor. and many production takes away. And on many goods of foreign companies hangs their labels. For the same tools, for export of MAKITA, Calm, they have their own names there, they come across with us. in the east, 2-3 times cheaper. The same Neoplan, which is a bus. By agreement, the Chinese released the Skyliner brand with all the logos of Neoplan and MAN, and now it is releasing it under its own name. Often, the Chinas are accused of copying, but no, there are factories producing the same Tayota, according to Japanese documentation, they are only made at the Chery factory, another bumper, changed lighting equipment, and a more cheap interior trim are hung on the same conveyor, it turns out to be Chery. And dealing with turkeys is somehow cautious, there’s nowhere to spit, you can get into the untouchable, tryndets tragedy. And you can get into a cow, or in a rajah, or in a monkey, so generally shooting. Cool turkey in the photo.
  4. gabonskijfront
    gabonskijfront 5 May 2020 09: 16 New
    -1
    I suppose the Chinese are prettier. The Hindus with their culturally religious code are peculiar, some kind of veiled fascism. All these fierce and bloodthirsty deities, plus the caste system.
    1. Volodin
      5 May 2020 09: 38 New
      +4
      Quote: gabonskijfront
      I suppose the Chinese are prettier. The Hindus with their culturally religious code are peculiar, some kind of veiled fascism. All these fierce and bloodthirsty deities, plus the caste system.

      Well, if the same Saudis can afford to dismember a person and take him out of the embassy in parts in a suitcase, then they will not be sentimental in the form of the caste system of India ... Billions and political ambitions decide again.
    2. AU Ivanov.
      AU Ivanov. 5 May 2020 11: 23 New
      -2
      Indians are better than the notorious Chinese nationalists. To turn them from nationalists to Nazis - just spit. A couple is a triple of CCP pointers and Hitler will nervously smoke aside.
    3. Nemchinov Vl
      Nemchinov Vl 5 May 2020 13: 59 New
      +1
      Quote: gabonskijfront
      I suppose the Chinese are prettier. It hurts the Hindus with their own culturally religious code
      yes, but the adherence to the Vedic traditions was maintained to a greater extent than the Slavs fasting race (Tartaria) ?! smile
      Quote: gabonskijfront
      some kind of veiled fascism
      and forgive what you saw fascism ?! belay request In the solar swastikas ?!
      Quote: gabonskijfront
      All these fierce and bloodthirsty deities
      well ... well, do we know everything about "bloodthirsty extremes of religions" India and China ?! recourse No.
      Quote: gabonskijfront
      ... yes, plus a caste system.
      Are you sure it's always bad ?! belay But sometimes it is really better when, - "baking pies for the oven, and the shoemaker fixes the boots" (of course, this comparison is a figurative hint) ... hi
      Well, the last of the aspects (historical) ... so you said that, -
      Quote: gabonskijfront
      I suppose the Chinese are prettier
      ?! But once upon a time (only 7529 years ago, ... Before "the creation of the world in the Star Temple"), our ancestors had to fight for a very long time with Arimia (China), under the leadership of Ahriman ... and then, after the victory , make them build a wall with loopholes in their direction ...?! Not with India ... Well then ...
      The symbolic image - George the Victorious to help (for memory) ...
  5. The comment was deleted.
  6. APASUS
    APASUS 5 May 2020 11: 18 New
    +1
    I think India’s problems in the struggle for investment are still far ahead. The habit of bargaining for everything, changing the terms of the competitions on the go, while quite serious slowness plays a role
  7. And Makarov
    And Makarov 5 May 2020 14: 07 New
    -2
    India and China are trying to intercept each other a rich merchant
  8. Antokha
    Antokha 5 May 2020 16: 43 New
    0
    The Indian press reports that "many foreign companies are ready to withdraw production from China in connection with the coronavirus pandemic and Beijing's concealment of data on the real number of infected in this country."

    Nonsense. They can only have economic motives - cost.