Setting aside regional rivalry, India is attracting Chinese enterprises to invest in India to boost its economy and create more jobs for its young workers. (Photo : Reuters)
Indian entrepreneurs are trying to attract Chinese capital by intensifying their efforts at promoting investment opportunities in India, according to speakers at the India China (Wuxi) Business and Investment Forum, held Monday, March 28, in Wuxi, East China's Jiangsu Province, the Global Times reported.
The report said that in the past two years, the "Make in India" campaign has been promoted by the Indian government around the world.
In its effort to boost the economy, India has eased several restrictions on foreign capital in various sectors that include mining, defense and civil aviation, media reports said.
"The Indian government is quite eager to attract more foreign capital to boost its manufacturing sector, which is a major channel for employment," Li Qin, a Chinese legal counsel with India-based law firm D.H. Law Associates, said.
"About 65 percent of Indians are younger than 35, but there aren't enough jobs for them," Li was quoted as saying.
The Beijing-based Economic Information Daily reported in late Dec. 2015 that a total of $19.4 billion in foreign direct investment was received by India in the first half of 2015, an increase of 30 percent year-on-year.
From 2006 to 2014, China's investment in India had increased more than 30-fold, according to people.com.cn.
"It is quite obvious that more and more Chinese enterprises are entering India," Wan Qian, assistant to the general manager at state-controlled China Machinery Engineering Corp., told the Global Times.
Wan, however, cautioned that there are legal risks in India and Chinese enterprises must pay careful attention to these. "The legal systems in different parts of India are quite different," he said.
Li agreed, saying that "soft factors such as the law can never be ignored." He said that Chinese enterprises interested to make profits in India must consider the challenges posed by language and enterprise localization.
Li, however, expressed optimism with India's domestic demand-driven economic model, which presents investment prospects.
"But Chinese investors should not expect that a return on investment will be quick," Li noted. "It usually takes several years."
Li added that the lack of infrastructure in India could actually be a source of investment opportunities, the report said.
