Wednesday, March 9, 2016

Foreign Direct Investment in India


According to Infosys co-founder and former UIDAI chief Nandan Nilekani, India is the most hyper competitive internet market in the world. In the US, you don’t have Chinese companies- WeChat and Alibaba may be huge in china, but they don’t exist in America. Conversely, the American companies are not there in china. India is the only country in the world where the American, Chinese and home-grown companies are competing. There are three levels of competition. You have amazon competing in e-commerce, companies like Alibaba and Softbank investing in Snapdeal and Paytm and you have a home-grown company like Flipkart.
The government of India has received investment proposals of over Rs 1,1o,ooo crore in the last 12 months from various companies. India has become one of the most attractive destinations for investments in the manufacturing sector.    About 25% of smartphones shipped in the country in the april-june quarter of 2015 were made in India, up from about 20% the previous quarter. The UP government has secured investment deals valued at Rs 5000 crore for setting up mobile manufacturing units in the state, and Maharashtra has cleared land allotment for 130 industrial units across the state with an investment of Rs 6266 crore.
 

Sony corp is getting back to manufacturing in India with plans to make two models of the Bravia brand of television sets at Foxconn’s Sriperumbudur plant. Czech Republic companies are looking forward to invest in sectors like automobile, energy, infrastructure and defence in India. Hitachi is looking at various businesses for expansion in India including IT, healthcare, transportation, water, as well as oil and gas. Siemens has announced that it will invest Rs 1 billion in India to add 4000 jobs to its existing workforce of 16000 in the country. Samsung Electronics has invested Rs 517 crore towards the expansion of its manufacturing plant in Noida. Foxconn is planning an aggressive expansion in India, building up to 12 new factories and employing as many as one million workers by 2020. US-based Hewlett-Packard has said it will focus on mobile printing and will explore the possibility of setting up a printer manufacturing unit in India. 

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