India, an emerging power. In the first half of 2022, India's GDP reached US$1.72 trillion, surpassing the UK to become the fifth largest economy in the world, with a year-on-year growth rate of 8.4%, ranking first among major economies.
In recent years, the development of India's economy has been obvious to all, with GDP ranging from US$1.83 trillion in 2011 to US$3.17 trillion in 2021. India has the second largest population in the world, reaching 1.393 billion in 2021.
No matter what aspect, India is a huge market, which contains countless business opportunities. Capitals of all countries are coveting this big fat meat and are entering the Indian market one after another.
A large number of foreign-invested enterprises were soon established in India, and for a time India became the darling of the investment community.
But foreign-invested enterprises soon discovered the problem. Investing in India, their assets may face evaporation at any time. That is what we often say, you want to make other people's profits, but others are staring at your principal.
From 2014 to 2021, a total of 2,783 multinational companies in India have closed their companies or offices. There are only about 12,000 foreign companies in India in total. One-sixth of foreign-funded enterprises escaped, giving India a loud title - "Investment Nightmare" . Why does this happen to
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Although the Indian government welcomes foreign capital to enter domestic development on the surface, it ultimately has a strong national self-esteem. For foreign investors, India is committed to using them to develop their own economy, but not allowing them to earn profits in their own country.
This is a very contradictory idea in itself. Foreign capital is not philanthropists, and they come to India to help them. They are interested in India with business opportunities everywhere. If they don't make money, they will definitely not invest a lot of money and time in India.
Indian government and the people are very vigilant about foreign capital, believing that they come to India to deprive India, so they try every means to cut off their losses.
Chinese enterprises entered the Indian market very early. Xiaomi , vivo and other mobile phone industries can be said to be pioneers, but the development of companies such as Xiaomi and vivo in India has not been smooth sailing.
In 2022, the Indian government recovered a so-called "tax evasion" fine of 6.53 billion rupees (about 500 million yuan) from Xiaomi, and then seized a deposit of 5,55 billion rupees (about 4.8 billion yuan) from Xiaomi's subsidiary.
In July 2022, the Indian government frozen nearly 400 million yuan of assets in vivo 119 bank accounts in India.
In fact, the Indian government not only attacks Chinese enterprises, but almost all enterprises in all countries have encountered such a situation in India.
Amazon company suffered a sky-high fine. India asked Amazon to pay 2 billion rupees (about 26.3 million US dollars) within 45 days on the grounds that " Amazon concealed the facts in the investment transaction and did not conduct fair and honest disclosure." In fact, this dispute was the other party to the transaction. Future Group violated the agreement and sold its business to Indian local giant Reliance Group . As a giant Indian company, Reliance Group clearly has an absolute advantage.
Another giant Walmart is also believed in India that it is suspected of violating retail-related laws and plans to impose a fine of US$1.35 billion. The world's largest search engine, Google, was fined $20.95 million. British telecom giant Vodafone has fought a lawsuit with the Indian government for more than ten years, from the district court to the high court, then to the Supreme Court, and finally to international arbitration.
It can be said that in India, no matter where you come from, you will all be "specially taken care of".
A region wants to attract foreign investors, several important conditions include: perfect infrastructure construction, a good market environment, and a huge consumer market.
Infrastructure in India is relatively backward. Taking Uttar Pradesh, the most populous, as an example (the capital circle), many places cannot guarantee power supply, and the situation in other areas is even worse. India's electricity gap reaches 14% every year. India's business environment performs worse, and the above examples are enough to dispel many capital's desire to enter India.
Although India's economic prospects are limitless at present, India needs to take more paths if it wants to become a mature economy. At least, you can no longer be a nightmare for foreign capital!
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