After Xiaomi was fined 4.8 billion yuan, multiple multinational companies rushed to India, and India was underestimated by us

Tech 2023-07-04 22:55:00 Source: Network

Before reading this article, please click on "Follow" to facilitate discussion and sharing with you, and also to watch the next exciting article in a timely manner. Thank you very much for your attentionIndia is a magical land,Many foreign companies have encountered many strange things in India,Chinese companies are no exception

Before reading this article, please click on "Follow" to facilitate discussion and sharing with you, and also to watch the next exciting article in a timely manner. Thank you very much for your attention

India is a magical land,Many foreign companies have encountered many strange things in India,Chinese companies are no exception. Xiaomi and Vivo were once full of confidence and wanted to develop India into their next ideal market, but ultimately achieved little results.

But this does not mean that companies have abandoned the Indian market. On the contrary, many companies are complacent and a large number of multinational giants are still flocking to India.The well-known Tesla founder Musk has stated that he will make India his next investment target, and Amazon and others have also stated that they will continue to expand their investment in India and expand their influence in the Indian market.

In the past, India's "methods" were all obvious. Why would so many well-known companies be willing to invest in India?What will our future cooperative relationship with India look like?

Xiaomi's invasion into India suffers

Xiaomi's entry into the Indian market is a very important symbol of domestic mobile phones going international, and in the past, we were also very happy to see domestic products go abroad.However, after investing in building a factory in India, Xiaomi's management found that doing business in India is not that easy.

Not only do we have to face unfamiliar environments, but also the Indian government's occasional surprise inspections and high taxes,It is conservatively estimated that List of Xiaomi products has lost more than 5 billion of profits, and is hesitating on the edge of withdrawal or adherence.

Xiaomi's experience can only be described as "tragic". Last year, it was first taxed with over $500 million, and then more than 4.8 billion of Xiaomi's deposits in India were frozen.With this combination of punches, Xiaomi's layout in India was almost completely abandoned.

Currently, Xiaomi is actively appealing to the Indian government to explain its situation. However, the Indian government has determined that,Xiaomi Company illegally transfers property overseas,Xiaomi's appeal is on the brink of failure.

However, for List of Xiaomi products, it has taken three years to make Xiaomi mobile phone a leader in the Indian mobile phone market. It is not reconciled to withdraw now.

So, Lei Jun also stated that he will closely cooperate with the government in the future to prove that his business model and processes in India are all reasonable and legal, clarify misunderstandings, and continue to appeal.

Xiaomi's reaction

In such a harsh environment, although Xiaomi still insists on operating in the Indian market, it is impossible not to make any counterattacks.

However, India has introduced a policy that requires all executives of companies in India to be Indian, and mobile phones sold to India must also be produced in India.These policies are aimed at ensuring the employment of Indians and allowing them to maximize the benefits of foreign factories investing locally.

If Xiaomi does not retreat, it may face the fate of being robbed of all its assets by India in the future.Therefore, Xiaomi reluctantly chose to lay off employees. There are reports that Xiaomi plans to lay off more than one-third of the employees of Indian companies and will continue to grow in the future.

Based on the current situation in India, Xiaomi's expansion has reached a bottleneck period, and this time it has also encountered such a major crisis. It is beyond reproach to save costs.In 2018, Xiaomi was the largest smartphone brand in India, indicating that the Indian market cannot be easily abandoned.

So, it is necessary for Xiaomi to continue discussing with the Indian government on how to maximize its own interests.Xiaomi's executives in India have also stated that they will continue to communicate with the Indian government to jointly build a win-win future for cooperation.

Foreign companies in India

You should know that China is not the only one that has suffered a heavy blow in the Indian market, and many famous foreign companies have also suffered setbacks in India.It should be said that India is a land of 'equality for all', and no matter what kind of enterprise comes here, it will suffer from India's occasional surprise inspections and skyrocketing fines, which is unbearable.

Wal Mart, Samsung, Amazon and Google have all been treated like Xiaomi.First, conduct surprise inspections, then impose fines for various reasons, or confiscate assets under the guise of tax evasion and violations, ultimately turning investments from other countries into one's own.

It should be said that over the years, India has relied on these means to turn many foreign enterprises into "domestic enterprises", which is beyond one's control. However, such a harsh investment environment will eventually face backlash.After a period of time, India's investment market can be described as "well-known overseas", and many companies are avoiding it, making it difficult for the Indian government to cope.

President Modi could only personally step down and promised many benefits for foreign companies to invest in India. At present, although people are still skeptical about Indian investment, it is gradually recovering.

However, there have been examples of injuries before. Nowadays, foreign companies are more cautious in investing. Generally, when facing orders from India, they choose to pay the full amount first and then deliver the goods.

It can only be said that the credibility of a country and the trust of foreign companies in the investment environment take some time to recover.BYD also stated in the face of orders for electric vehicles in India that after the full payment is delivered, BYD will arrange for delivery as soon as possible.

Indian market

Indian market,,,

,Indian market,,India is the world's most populous country with great potential. If factories can be built and put into production in India, the cost will be low and the profits can be very considerable.

And India is very eager to develop its manufacturing industry and become the next manufacturing powerhouse,On this basis, there will also be more support for the manufacturing industry. Despite having a poor record, countries still believe that if India wants to develop itself well, it must retain these foreign investment enterprises.

Secondly, even the Indian government is making changes to make the investment environment more reasonable.When countries hesitate to invest in India, the Indian government has stated that it will actively make changes.

As is well known, the current economic model is becoming increasingly globalized, and whether a country can attract enough foreign investment is one of the very important factors to test its economic development.

Foreign investment can bring many benefits, not only increasing employment opportunities, but also promoting the economic development of surrounding industries.So, all countries attach great importance to their own investment environment and are committed to attracting more foreign investment.

With the unremitting efforts of the government, the overall investment environment in India has significantly improved, and everyone is willing to give it a try again.The most important point is that as we all know, India still has very prominent advantages in many aspects.

For example, India's education system has helped select numerous talents. At present, many executives from Fortune 500 companies are from India, and the competition for selection in China is very fierce, sending many excellent talents to the world.

Many IT talents come from India to learn around the world, and these people will ultimately feed back India's development.,Indian market,

Relocation of factories in various countries

I don't know if you have noticed that since last year, many factories have started relocating to Southeast Asia, India, and other places.The poor economic environment is not only due to the rapid development of countries such as India, but also due to the advantage of labor force, which makes their production costs relatively low.

Moreover, the decision-making power of the Indian leadership is still strongThey have a clear understanding of India's advantages, so they can raise demands from these perspectives, allowing other countries to prioritize learning technology and strive to develop their own local brands when building factories locally.

India hopes to leverage the power of other countries to develop itself, which is a very rational decision that any developing country can learn from.

The relocation of these factories to India can help the Indian government solve tax and employment issues, and promote stable social development.However, the problem that any factory that wants to develop in India for a long time must face is: the more investment, the more likely it is to be deeply tied to India. Once India continues to play tricks, companies may not be able to easily leave.

So, currently, cooperation with India remains relatively simple in terms of single line cooperation, with relatively few investors wanting to build factories.If India can maintain a relatively stable investment environment in the future, then I believe there will be more and more partners!

Careful Thinking in the United States

For the United States, India is not only a hot land for investment, but also an important partner in achieving its own strategy of suppressing China's development.Demographics of India has a large population, and its development is relatively slow. For western countries, it is an object that can be won over but will not pose a threat.

The West has always hated our "the Belt and Road",,,,,

This kind of caution can be seen from the factories that the United States wants to invest in and build in India.,,,,,

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Indian market,,,,

Indian market,,

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