Chinese investment in India to rocket as Wanda and SAIC Motor move in

HaryanaAfter year’s of disinterest, Chinese investment in India looks set to rocket after its largest commercial real estate developer Wanda announced that it was planning to invest $10bn in the north Indian state of Haryana. SIAC Motor, itself the country’s largest car maker, looks ready to follow suit and is poised to buy GM’s facility in Gujarat, with around a further 100 small and medium Chinese enterprises having also pledged investments worth a total of $1bn.
It is a far cry from the Chinese business community’s recent reluctance to invest in its southern neighbour. Between 2000 and the third quarter of 2015, total Chinese investment in India amounted to a mere $1.2bn or only 0.47% of India’s total FDI inflows. While China became India’s largest trading partner in 2008, investment flow has been hampered by concerns over national security.
Chinese businesses have already begun investing in India’s digital and e-commerce sectors, with the online travel company Ctrip picking up a strategic stake in Makemytrip and Baidu letting it be known that it has had discussions with several Indian internet startups looking for investment. Both Alibaba and Tencent Holdings have also invested in internet start-ups on the sub-continent.
A recent Credit Suisse report highlighted that India’s internet and e-commerce journey bears close similarity with that of China, with a lag of 8-10 years. “The presence of such investors on the boards of investee companies enables access to insightful market advice and winning business models,” said Anup Vikal, CFO of Snapdeal, which has attracted investments from Alibaba, Taiwan’s Foxconn and Japanese telecoms & internet giant Softbank.

Source: indiatimes