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China Inc Flocking to India as Beijing Economy Wobbles
By Sunitha Natti
Published: 12th May 2015 06:03 AM
Last Updated: 12th May 2015 06:03 AM
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HYDERABAD: With the world’s second largest economy staring at a slowdown, Chinese companies are betting big on the Indian market.
The past six months saw companies like Alibaba, Huawei, Xiaomi, Gionee and Vivo rolling out aggressive business plans.
For instance, Alibaba entered the domestic e-commerce space acquiring 25 per cent stake in Paytm, while Shenzhen-based Vivo, the third-largest smartphone maker in China, wants to manufacture in Gurgaon, preceeded by two other Chinese players, Xiaomi and Gionee, wanting to set up a data centre and a production unit respectively.
“New generation companies don’t want to get into high-level manufacturing in China as it reached a saturation point. Production costs are getting higher in China and companies are expanding in Asia, including India,” Seema Nehra, Director, Pals Plush Ltd told Express. The Chinese soft-toy maker, is doubling its production facility in Chittoor and is setting up its second $10-million facility at Kakinada. Commercial production is likely to begin in September.
“India is a huge market and we are here with a long-term plan,” said Tracy Chen, General Manager, Vivo India, which shipped 40 million smartphones from China last year and plans to sell an equal number in India alone in the next 5-10 years.
Currently, FDI from China is insignificant at 0.36 per cent and the cumulative foreign equity inflows between April, 2000 and February, 2015 stood at $887.80 million as against Mauritius’ $86,972 million and Singapore’s $31,874 million cumulative inflows during the same period. Analysts expect this to rise both because of proactive Indian government push and the slowdown in China.
Buyoed by ‘Make-in-India’ campaign, Chinese telecom company Huawei Technologies, invested $170 million for its R&D centre in India.This is its first investment in India and will also be its biggest R&D facility outside China.
China Inc Flocking to India as Beijing Economy Wobbles -The New Indian Express
By Sunitha Natti
Published: 12th May 2015 06:03 AM
Last Updated: 12th May 2015 06:03 AM
Email0
HYDERABAD: With the world’s second largest economy staring at a slowdown, Chinese companies are betting big on the Indian market.
The past six months saw companies like Alibaba, Huawei, Xiaomi, Gionee and Vivo rolling out aggressive business plans.
For instance, Alibaba entered the domestic e-commerce space acquiring 25 per cent stake in Paytm, while Shenzhen-based Vivo, the third-largest smartphone maker in China, wants to manufacture in Gurgaon, preceeded by two other Chinese players, Xiaomi and Gionee, wanting to set up a data centre and a production unit respectively.
“New generation companies don’t want to get into high-level manufacturing in China as it reached a saturation point. Production costs are getting higher in China and companies are expanding in Asia, including India,” Seema Nehra, Director, Pals Plush Ltd told Express. The Chinese soft-toy maker, is doubling its production facility in Chittoor and is setting up its second $10-million facility at Kakinada. Commercial production is likely to begin in September.
“India is a huge market and we are here with a long-term plan,” said Tracy Chen, General Manager, Vivo India, which shipped 40 million smartphones from China last year and plans to sell an equal number in India alone in the next 5-10 years.
Currently, FDI from China is insignificant at 0.36 per cent and the cumulative foreign equity inflows between April, 2000 and February, 2015 stood at $887.80 million as against Mauritius’ $86,972 million and Singapore’s $31,874 million cumulative inflows during the same period. Analysts expect this to rise both because of proactive Indian government push and the slowdown in China.
Buyoed by ‘Make-in-India’ campaign, Chinese telecom company Huawei Technologies, invested $170 million for its R&D centre in India.This is its first investment in India and will also be its biggest R&D facility outside China.
China Inc Flocking to India as Beijing Economy Wobbles -The New Indian Express
