ApplesOEMThe King of "".Luxshare Precision"It's a family in Dongguan, GuangdongOEMplant, tooApplesMobile phonesOne of the three largest assemblers. In 2019,Luxshare PrecisionPlans to enter the Indian market and plan to purchase a shutdown digital product factory in the southern Indian state of Tamil Nadu, expectedInvestmentsAbout 23500 million RMB. However, the approval department delayed for three years and refusedLuxshare PrecisionVisa application to enter India. Finally, under the influence of the news of this year's harvest of Chinese companies in India,Luxshare PrecisionDecided to abandon the one in IndiaInvestmentsplanned, and will 3US$300 million was transferred to the Bac Giang Industrial Park in Vietnam.
This timeInvestmentsThe abandonment of the plan is not just rightLuxshare PrecisionThe loss of individuals also reflects the terrible business environment in India. India has long been blamed forInvestmentsThe environment is poor, and there are many risks and barriers for foreign-funded enterprises. Although India has tried to improve the business environment in recent years, since 2015World BankRanking 142nd in the business environment rankings, rising to 63rd in 2020, there are still a large number of foreign companies opting out of the Indian market.
1. Complicated approval procedures and delays in approval time
One of the top risks faced by foreign companies in the Indian market is the complicated approval process and delays. The article mentions,Luxshare PrecisionofInvestmentsThe plan was delayed by the approval department for three years and the visa application was denied. This procrastination and uncertainty pairInvestmentsis a huge pressure and affects the businessInvestmentsDecision-making.
2. High tariffs and barriers
India has implemented a relatively high level of foreign investmentTariffswithBarriersAs a result, companies are facing more costs and challenges in entering the Indian market and operating in the process. This not only restricts the development of foreign enterprises, but also weakens the attractiveness of the Indian market.
3. The power of the local government is too great
India's place ** inEconomyand have considerable power in business affairs, which are often difficult to control effectively. This leads to great differences in policies and regulations in different places, which brings great uncertainty and challenges to the operation and development of enterprises.
4. Litigation risks and uncertain legal environment
As mentioned in the article, foreign-owned enterprises doing business in India usually face two major risks, namely the risk of daily operations and the risk of litigation. The litigation process in India is cumbersome and time-consuming, resulting in foreign companies having to deal with disputes orLawsProblems often face long periods of uncertainty and obstacles. In addition, aboutTaxesand contract executionLawsThere is also great uncertainty in the environment, which increases the operational risk of foreign-funded enterprises.
In addition to Chinese companies, companies from other countries are facing similar difficulties in the Indian market. According to data released by the Ministry of Commerce and Industry, from 2014 to the end of 2021, a total of 2,783 foreign-funded enterprises announced the closure of their operations in India. Companies such as Telenor, POSCO, Royal Bank of Scotland, Metro, and Ford have all experienced failures and setbacks in the Indian market.
India's foreign business environment has not only caused losses to foreign-funded enterprises, but also harmed India's own interests. in attracting foreign investment and promotingEconomyIn terms of development, India still has a number of institutional, policy and implementation problems that need to be improved urgently.
IndiaInvestmentsThe instability and risks of the environment pose a huge challenge to foreign-funded enterprises. Complex approval process, highTariffswithBarriers, local ** power is excessive and uncertainLawsEnvironmental and other issues make India's business environment unsuitable for attracting foreign investment. Despite India's efforts to improve its business environment in recent years, there are still a large number of foreign-funded companies that have opted out or abandoned their presence in IndiaInvestmentsPlan.
1.Market potential: Despite IndiaInvestmentsThere are environmental issues, but the Indian market, with its large population and potential consumer demand, is an important consideration for some businesses.
ChainLayout: India has certain geographical advantages in Asia, and for some enterprises, setting up a production base in India can be better laid outChainto meet the needs of the local and surrounding markets.
3.Policy support: India has provided certain preferential policies and incentives in some areas, attracting some foreign-funded enterprisesInvestments
4.Competitive advantage: Some Chinese companies have certain competitive advantages in technology, capital and management, and are able to achieve a certain position and market share in the Indian market.
Nevertheless, Chinese companies in IndiaInvestmentsIt's not without risk. mentioned aboveLuxshare PrecisionWithdrawn in IndiaInvestmentsPlans, it is by IndiaInvestmentsEnvironmental uncertainty and the impact of risks. Businesses are consideringInvestmentsIn India, it is important to carefully assess the risks and fully communicate and understand with local** and partners to reduce the potentialInvestmentsLoss.