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Opening the gates to investment in India

Updated: 2015-01-23 07:36
(China Daily)

High-tech companies from China have joined their domestic peers in actively scouting for investment opportunities in overseas markets, with some looking to India as a possible destination.

India's strong growth credentials are undoubtedly the prime driver for most of the high-tech companies, said industry experts. The Asian nation is planning to grow its gross domestic product from $1.9 trillion currently to about $10.4 trillion by 2034. That would elevate its per capita GDP from $1,490 to $6,800 during the same period, said a recent report published by global consulting firm PricewaterhouseCoopers.

Indications that Chinese companies are considering India in a big way became evident in November when Jack Ma, the Aliababa chief, indicated that the e-commerce giant would invest more in India, as it believes that the Internet can transform the country's future.

According to media reports, Ma was also expected to hold discussions with Kunal Bahl, the 30-year-old co-founder and chief executive of online marketplace Snapdeal, at a suitable time. Snapdeal, however, declined to confirm any such meeting, even as the reports suggested that Ma might join hands with Snapdeal to build a bigger e-commerce presence for Alibaba in India.

Some Chinese companies have already started reaping the gains from their investments in India.

Xiaomi Corp, the world's third-biggest smartphone maker, will invest in Indian startups and overseas media content, Hugo Barra, vice-president of Xiaomi's global division, said recently. Xiaomi founder and CEO Lei Jun had said, it has already sold over 1 million mobile phones in India after entering the market in June 2014.

Technology giant Lenovo Group Ltd has charted plans to become the third-largest smartphone company in India, according to a report in The Financial Express. Lenovo spent $2.9 billion to acquire Motorola, India's third-largest smartphone maker, in 2014.

Rao Talasila, director at the US-based electronics firm Belkin Corp, said India's steady political environment, rapidly recovering economy, stronger Sino-India ties, offer huge growth potential for Chinese companies.

-Cai Xiao

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