Refusal to pay the balance of 42.8 billion, India violated!U.S. companies are sent into a trap ?

Mondo Technology Updated on 2024-01-31

India is flexible when it comes to dealing with foreign companiesBusinessThe means have made many people admire. The most recent case is India's payment problems for the purchase of 36 Rafale. According to the agreement, India should pay in US dollars or euros, but India did not agree, and was only willing to pay in Indian rupees and threatened to freeze the repayment account. This incident provoked a reaction against IndiaBusinessBehavioural warnings, especially for those looking to enter the Indian market.

In another case, India refusedBYDThe requirement to pay the remaining amount in the new energy bus order is only 10% of the advance payment. However, the United States has stepped forward to donate to India3$900 million to support U.S. businesses working with the Indian market. This behavior is both a desire to deepen relations with India and an attempt to snatchBYDand other enterprises, thereby increasing revenue for American companies.

While the attractiveness of U.S. companies to the Indian market is self-evident, doubts have arisen about the motivations of U.S. companies to get involved. By donating money to support India's procurement of new energy buses, U.S. companies hope to show India their sincerity in order to get more orders and gain an advantage in the market competition. However, I personally believe that American businesses may fall into a "trap".

InBYDWith a firm stance, India has two options. One is consentBYDrequires an 80% advance payment, and another option is to work with an American business. Originally, India still wanted toBYDFurther negotiations, but the United States offered generously and was willing to offer 3With a donation of $900 million, India will naturally prefer the new energy buses of the United States. In this way,BYDwill be excluded from the Indian market, which is likely to bet more orders on U.S. businesses. But if India wants to fill this huge gap in new energy bus orders, will they be willing to pay such a huge amount of money?In other words, if India violates the agreement and does not pay the final payment, American companies will face difficulties. After all, the deal was led by the United States, and India did not take the initiative to place an order.

Over the past many years, many multinational companies have had trouble in the Indian market, including American ones. Conducted in conjunction with IndiaBusinessAt the time of the deal, India was almost a bowl of water, even for Tesla, which they wanted to fight for the most. India's attitude towards business is volatile, with sometimes repentance and sometimes acceptance. If India maintains this image, they will face increasingly serious foreign investmentInvestmentsThe negative impact will continue to expand.

Summary: IndianBusinessmeans aroused concern about its credibility andBusinessQuestioning of behavior. U.S. businesses also need to be cautious when working with the Indian market to avoid possible risks. For this question, I thinkInternationalBusinesses should be vigilant when transacting with India and try to establish a stable relationship with India to ensureBusinessThe smooth running of the transaction.

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