India's Failed Attempt to Seize Vivo: Over 400 Foreign Companies Flee, Modi's "Make in India" Dream Shattered?

Tech 2024-08-20 01:54:55 Source: Network

India's Failed Attempt to Seize Vivo: Over 400 Foreign Companies Flee, Modi's "Make in India" Dream Shattered?In recent years, the Indian government has been targeting foreign companies, particularly Chinese mobile phone companies, as their main target for suppression. Last year, the Indian Enforcement Directorate arrested Vivo's interim CEO and CFO in India on charges of money laundering, tax evasion, and other crimes

India's Failed Attempt to Seize Vivo: Over 400 Foreign Companies Flee, Modi's "Make in India" Dream Shattered?

India

In recent years, the Indian government has been targeting foreign companies, particularly Chinese mobile phone companies, as their main target for suppression. Last year, the Indian Enforcement Directorate arrested Vivo's interim CEO and CFO in India on charges of money laundering, tax evasion, and other crimes. Vivo officially expressed shock and publicly clarified the accusations, but to no avail. The true intention of India was to seize Vivo's investment and market share in India. However, it has been proven that India's plan has failed, leading to over 400 foreign companies preparing to withdraw, and Modi's "Make in India" dream seems to have been shattered as a result.

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I. Overseas Companies Face Discrimination in India: Deteriorating Investment Environment, Foreign Companies Fleeing

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In the past, Chinese mobile phone companies such as Vivo, Xiaomi, and OPPO highly valued the Indian market and invested substantial funds and resources in India. They were attracted by India's vast market size and the immense potential for low- to mid-range mobile phones. However, in recent years, the Indian government has frequently targeted these Chinese companies, attempting to drive them out of the Indian market under the pretext of tax evasion and other unsubstantiated charges.

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The Indian government has been advocating for "Make in India," hoping to rapidly enhance its industrial level through foreign investment. However, due to the slow development of India's domestic technology, they are eager to seize the investment achievements of foreign companies in India. This is not an isolated case; American companies have also encountered similar difficulties when investing in the Indian market.

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The Indian government is attempting to fill its industrial chain in the short term through such a "lure and plunder" approach. However, this practice is actually killing the goose that lays the golden eggs and harming India's long-term development interests. India's unstable investment policies and trade protectionism have caused many foreign companies to shy away from the Indian market. It is reported that over 400 foreign companies are withdrawing from India, which undoubtedly has a significant negative impact on India's economic development.

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II. India's Path of "Copying": Lack of Core Technology, Unable to Break Free from Dependence

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This behavior of the Indian government exposes its lack of core technology and innovation capabilities. India is currently in the mid- to early stages of industrialization, and its domestic technology research and development capabilities are weak, with most of its products being the result of absorbing and integrating foreign technology. Even India's military industry heavily relies on foreign technology and lacks independent research and development capabilities.

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The Indian government is trying to achieve rapid development by forcibly seizing the industries and technologies of foreign companies. However, this approach is merely a temporary solution, addressing the symptoms but not the root cause. Indian engineers lack mastery of core technologies. They only possess production lines and cannot achieve true technological progress.

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China's development experience provides valuable insights for India. Since the reform and opening up, China has actively attracted foreign investment and provided a favorable investment environment for foreign companies. Numerous foreign companies have established production lines and research centers in China, allowing China to rapidly achieve industrialization and technological advancement. China has not seized the industries of foreign companies like India but has instead collaborated with them, learned from their technologies, and innovated upon them.

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III. The Embarrassment of "Made in India": Data Bubble, Unable to Bring Real Benefits

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In recent years, the Indian government has been vigorously promoting "Make in India" and has invested heavily in resources and policy support in the manufacturing sector. Data shows that India has become the world's second-largest mobile phone manufacturer, and its automobile production has also increased. However, the reality behind these figures is not optimistic.

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The share of manufacturing in India's GDP remains stagnant at 14.7%, with no significant improvement. Most of the mobile phones produced in India are manufactured by contract manufacturers and do not utilize Indian technology, nor are all the raw materials sourced from India. The benefits of this "OEM production" are negligible.

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Currently, only contract manufacturers like Foxconn are willing to invest in India because they can fully leverage India's cheap labor force. However, recent reports indicate that Foxconn is moving back to China, establishing factories in Henan Province, because India cannot even provide high-quality labor. Previously, when Foxconn contracted to manufacture iPhones in India, there were incidents of low order fulfillment rates and products with E. coli contamination, which fully exposed the shortcomings of India's manufacturing industry.

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IV. India's Future: Lack of Sincerity, Missed Opportunities

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For India to truly achieve "Make in India," it must fundamentally address the underlying issues. Improving the quality of Indian workers, raising education standards, providing favorable policies for overseas companies, and eliminating trade protectionism are all areas that require effort.

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The Indian government should understand that its approach towards foreign companies will only deter investors. They should provide more support to foreign companies, attract more investment, and seize the opportunity of industrial transfer.

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Chinese companies chose to preemptively establish a presence in the Indian market because China is completing its industrial upgrade. China's domestic low- to mid-range manufacturing sector will eventually migrate to locations with lower labor costs, which is in line with market principles. India could have been the destination for these migrating industries, but the Indian government, through its short-sighted actions, has squandered this opportunity.

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V. Conclusion: Modi's "Make in India" Dream Can Only Be a Mirage. India Needs to Reflect on Its Development Strategy and Treat Foreign Companies Sincerely to Truly Achieve Economic Takeoff.

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References:

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Hanqing Finance (2024-08-13) India's Failed Attempt to Seize Vivo, Over 400 Foreign Companies Flee! Foreign Media: Backfired

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Mr Liu Talks Health (2024-08-13) India's Failed Attempt to Seize Vivo, Over 400 Foreign Companies Flee! Modi's Clever Trick Hurt Himself

Hippo Astrology (2024-08-12) India's Failed Attempt to Seize Vivo, Over 400 Foreign Companies Flee! Foreign Media: Backfired

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