In order to obtain long -term healthy development in the Indian market, SAIC MG (MG) Indian company introduced Indian investors such as JSW Group and other Indian local investors through equity transfer and capital increase and shareholding., Also achieved the value -added of state -owned assets by acquisition.
Earlier, there have been rumors that JSW Group tried to acquire some of the equity of SAIC Group's wholly -owned subsidiary, the wholly -owned subsidiary of SAIC Group in India, to surpass the proportion of Chinese shareholding, so that the SAIC Group lost its control of Indian subsidiaries.EssenceLater SAIC Group clarified that the above content was seriously separated from the facts.
But SAIC did make related adjustments.According to the British "Financial Times", Indian Iron and Steel Giants JSW Group reached a cooperation with India's SAIC to jointly establish a $ 1.5 billion joint venture.Bague Motors produced in India will all use the technical authorization provided by SAIC.This seems to be the initiative of SAIC Group, but it is actually the "empty glove white wolf" of the Indian government. It is forced to invest in the name of the name of the famous Juejue India company to set foot in the field of electric vehicles from SAIC.
The Indian government forcibly "cut leeks" is more than that.
Certain transnational corporate graveyl?
The world's first population and the underdeveloped consumer market have made India a oversized blue ocean in the eyes of foreign companies.India also knows its own advantages as capital, implement an open strategy to attract multinational enterprises to enter.
However, the historical memories of colonial, the political influence of many small and medium -sized enterprises in the country, and the urgent demand for the rapid cultivation of the local industrial chain have enabled the Indian market to show the business environment of rejection of foreign capital, or "high standards" require foreign companies to transfer profits.Transfer technology, some multinational enterprises "difficult" to meet their elections to meet or alleviate the pressure of populism.
Part of the punishment for foreign companies as follows:
These fines have entered the Indian government's pocketsMumbai Wealth Management. Most of the factories and supply chains left after the evacuation also made "wedding dresses" for local Indian companies. Many foreign companies in India also made water:
South Korea's Puxiang Iron and Steel: Investing in a factory of $ 12 billion, it was fined various difficulties. The procedure was dragged for 12 years. A pound of steel did not give birth, and then fled India.
Mumbai Electric: 1.3 billion US dollars built power plants, and the power plant was qualified. It was difficult to recover after operating for a long time.
GM: It has always been unable to make a profit in India, losing $ 588 million.
Ford: Deeply cultivated India for ten billion US dollars.
Harley David New: 11 years of high taxes in India, withdrawn from India after the operation is bleak.
Weizhong: I have not made a penny for 15 years deeply in India.In 2022, the factory was smashed, the equipment was damaged, and 20,000 apples were stolen.It was unable to make a profit in India for more than ten years. In the end, the factory was sold to the Indian Tata Group at a low price.
In the "Global Business Environment Report 2020" released by the World Bank, India is considered one of the "most difficult countries in the world".Although Modi expressed welcoming foreign companies to invest, after 10 years of foreign capital flow increased, in the fiscal year 2022-2023, India first experienced foreign capital inflows and declined.According to the statistics of Indian Reserve Bank, after adjusting the repatriation and withdrawal of foreign investors, India attracted the total amount of foreign capital in the fiscal year that the total amount of foreign capital fell 16.3%to 71 billion US dollars, and foreign direct investment fell by 27%to $ 41.6 billion.
"Indian" dispute India has revised the law to trace back for 50 years
It is worth mentioning that India and Vodelon have international economic disputes.
In 2007, British Vodafone acquired a 67%equity of Indian Telecom Giants and Kiji Aisha from the CPG (Cayman Peninsula) at a price of $ 11.1 billion.
This transaction book has nothing to do with India.However, the Indian government believes that this involves a company in India, so it requires Vodafeng to pay a $ 2.6 billion equity transfer income tax.
Then Vodafone filed a lawsuit with the Mumbai High Court, and after being rejected, he appealed to the Supreme Court of India. In the end, he judged Vodafone on the grounds that there was no relevant provisions in Indian law.
The Indian government immediately revised the legal provision, stipulating that no matter which company registered, as long as it involves India and the tax is not paid, it will be fined, and the traceability period can reach 50 years.
With freshly baked laws, India appealed again.With the basis of fines, coupled with the past 12 years, Vader was directly fined by 5.1 billion US dollars, and the two sides completely teared their faces.In the end, the Valustuston appealed to the International Arbitration Court to win the complaint.
After this battle, India amended domestic law overnight and set up traceability taxes.
"Global Investment Hot Land" with inconsistent names
According to the Indian Economic Times data, from 2014 to November 2021, a total of 2,783 foreign companies were closed in the Indian business.These include Ford, GM, Harley Davidson, Foxconn, Disney and other well -known multinational companies.Hyderabad Wealth Management
After 2017, the number of foreign companies actively in the Indian market has also begun to decline, from 3361 in March 2017 to 3311 in December 2021, a decrease of 1.5%.
Earlier, Modi threatened to realize "Indian manufacturing" when he took office, increased the manufacturing industry to 25%of the GDP, and increased 100 million jobs in the manufacturing industryJaipur Investment. By 2030, India would make India the third largest economy in the world.At that time, India's manufacturing accounted for 16.3%of the GDP (GDP), and by 2021, it fell to 14.3%.
From this point of view, India's words have not been realized.According to data from the Indian Economic Monitoring Center, India's unemployment rate increased from 4.9%in 2014 to 8.11%in April 2023.
Although India has a broad market space, the lower per capita income limits the actual consumption level of the people.The average daily consumption expenditure of the so-called "600 million middle class" is only $ 2-10, of which most of them are drivers, decoration workers, street hawkers, carpenters and other people who have just got rid of poverty.They are engaged in the service -oriented work of low thresholds. In addition to daily expenditures such as clothing, food, housing and transportation, they must also bear the costs of family education and medical care. They cannot have surplus funds for medium and high -end products or services provided by consumer multinational companies.
Under the impact of the new crown epidemic and inflation situation, many middle classes have slipped towards the poor, and the market is difficult to recover quickly in the short term.This has made it difficult for multinational companies to enter the Indian market for many years.For example, high -priced Apple mobile phones have been hovering outside the mainstream Indian market for many years; high cost -effective Xiaomi has been deeply cultivated in the local area for many years, and the highest profit is only 350 million yuan in 2020.
Data show that from 2019 to 2021, the proportion of foreign direct investment (FDI) flowing into India's foreign direct investment (FDI) fell from 3.4%to 2.8%.In 2021, in India's main FDI sources, except for Mauritius, Germany, and Japan's direct investment in India, Singapore, the United States, the Netherlands, and the UAE's direct investment in India all decreased, and the decrease exceeded 1/4.In addition, the British and Cayman Islands' direct investment in India also decreased by 1/5, resulting in a total of nearly 1/5 of the total FDI flowing into India in 2021 to $ 51.3 billion.
Some media believe that foreign companies are facing three mountains in India.
The first is the business environment of India.Relevant Indian departments often conduct raid inspections on many foreign companies on the grounds of tax issues.According to World Bank data, it takes an average of 18 days to register a company in India, which is about twice the average national level of the organization.Coupled with the 12 complicated procedures that must be experienced after registration, 34 procedures required to apply for a construction license, etc., the entire process takes about 110 days.
If a commercial dispute occurs, the average Indian court will take up to 1445 days, and the problem will be solved in the past 4 years.
The second is the land problem in India.South Korea ’s Puxai Railway has plans to build a factory in India and must be requisitioned in accordance with regulations. However, until the construction of the factory is planned to be revoked, the final ownership of the land has not been determined.Behind this is the restrictions of the private ownership of the land and the influence of political party struggles.
Third, the problem of tariffs in India.The U.S. Trade Representative Office listed India as a country with the highest tariffs in the world's main economy in its "Trade Barrone Report" and described India's trade policy as "opaque and unpredictable."
Legal and policy risk has become an investment in Indian risk points
A lawyer who is familiar with the legal environment of China and India believes that India mainly targets some Indian companies on the grounds that "tax evasion, tax evasion, and informal verification".If India ’s overseas companies deal with domestic thinking in India, they may cause more risks.At the same time, legal and policy risks have become the most unstable risk point for investing in India.
In the above form, Xiaomi is frozen by India.Xiaomi sells mobile phones in India, and needs to pay the patent fees to Qualcomm.However, the Indian authorities believe that the use of this franchise fee is not included in the tax price.
The lawyer further pointed out that India may have levy loopholes in terms of taxation, and it is difficult to determine this problem internationally.
For a long time, India has been one of India's largest trading partners.However, as India's trade protectionism has intensified, the trade barriers of the two countries have become higher and higher.
According to reports, starting from February 2, 2020, India levies 20%of universal tariffs on imported solar batteries. In addition, India ’s photovoltaic components exported to India will also be levied 15%of defensive tariffs.
In the same year, India expanded the barriers to virtual products and banned 118 Indian apps.
At the same time, the Sino -Indian trade deficit is also expanding, a new high.In 2022, China -India's bilateral trade volume reached US $ 135.984 billion, of which India exported $ 17.5 billion and imports were US $ 118.5 billion. The trade deficit between the two countries exceeded $ 100 billion.
According to data from the Ministry of Commerce, China Enterprise's direct investment in India in 2020 was US $ 210 million, a year -on -year decrease of 61.6%; the direct investment in India was US $ 63.18 million in 2021, a year -on -year decrease of 68.3%.
① 559 foreign companies withdrew from 5 years, but India also wanted to continue to cut "leek"Varanasi Wealth Management. Times Weekly.
② Inventory of the multinational companies that have been punished by India and invested in water. Netease Yang Zhu Xue School. 20123-06-15.
③ How India allows more than 2,700 multinational companies to "run the road" | Beijing Think Tank. Beijing News Comment. 20122-08-23.
④ More than 2,000 foreign companies "escaped" India and tried to return to the Indian market. What happened.
⑤ SAIC announced: 26.5 billion rupees to account. Indian Economic Network. 20124-04-08.
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