Chinese investors betting big on India
India will witness big investments from China as Chinese companies plan to invest $5-10 billion in India in the next few years. This may come as a big boost to investments in India and can significantly improve the performance of India's economy. Notably, China has invested a meager $1.2 billion over the last 15 years (2000-15) because of market conditions and national security concerns.
Chinese investment forms a small share
Out of a total $260 billion of Foreign Direct Investment (FDI) received in India between 2000-15, less than 0.5% has come from China.
Why have Chinese investments in India been low?
Global Times, the mouthpiece of communist party of China, published an article outlining reasons for low Chinese investment in India. "Power failures happen frequently. There is a lack of decent roads and ports for transportation. Labour unrest occurs from time to time. Attracting investments against such backdrop will prove to be a major problem." Additionally, security concerns has deterred India from seeking Chinese investment.
India seeks Chinese investors amidst widening trade deficit
Since 2004-05, Indo-China trade has swelled 10 times to $72 billion even as the trade deficit widened dramatically to $48 billion in favour of China during FY2014-15. India is now keen to attract Chinese investments to balance this.
Deals worth $22 billion signed during Modi's visit
India and China signed agreements worth $22 billion during PM Modi's China visit. India had also relaxed visa norms to attract Chinese investors, as India aims to tap Chinese expertise in infrastructure. This along with the visit of Chinese President Xi Jinping to India during 2014 had proved to be a turning point in economic relations between the two major Asian economies.
China's Sany group to invest $5 billion
Chinese heavy machinery manufacturer Sany, might invest $5 billion in India over next 5 years. $3 billion would be invested to produce 2000MW of renewable energy, including offshore wind energy, which would not only create 1000 jobs but also cut carbon emissions. $2 billion would be invested in the housing and construction sector to bring expertise, global best practices and improved technology in India.
Chinese mobile makers excited about 'Make in India'
Chinese mobile manufacturers are looking keen to invest in India. According to Mr Wu, founder and CEO, Mobile World (Shoujibao) Shenzhen, India's population, huge market and the Make in India initiative are their primary drivers to invest in India. Mobile phone manufacturers may invest around $2-3 billion in coming 2-3 years. India is the fastest growing mobile phone market but imports significantly from China.
Chinese Wanda group to invest $10 billion
Dalian Wanda, the $44 billion conglomerate, would invest $10 billion in an industrial township in Haryana. Wanda is the China's largest commercial real estate developer which aims to generate a third of its revenue from outside China by 2020. The construction work for the industrial township, spread over 13 sq km could start as early as this year itself.