Friday, December 4, 2020
Home Latest india news CHINA HAS 0.51% OF TOTAL FDI IN INDIA

CHINA HAS 0.51% OF TOTAL FDI IN INDIA

In the last 20 years, China has accounted for just 0.51% of the total foreign direct investment that has come into Indian companies, and ranks a lowly 18, according to Indian government data.

India, in turn, looked at China as the factory of the world, driven by state support, top-notch infrastructure and economies of scale. In fact, the big story in the 2000s was about Indian manufacturers setting up factories in China to tap these advantages.

China welcomed them. When Indian automobile component company Sundram Fasteners set up a factory in Wuyuan town in China’s Zhejiang province more than a decade ago, local authorities named a road in the town after the Chennai-headquartered company. Till 2018, as per Indian government data, Indian companies had invested $1.09 billion in China.

Initially, foreign direct investment from China to India was predominantly by state-owned companies investing in the infrastructure space. Over the last 10 years, however, this has started to change with China’s reputation as a technology superpower growing.

Chinese tech giants such as Baidu, Alibaba and Tencent started investing in fledgling Indian companies. According to data from technology a research firm, 28 Chinese corporates have invested in Indian startups since 2010. Leading them are Tencent and Xiaomi. Tencent, for instance, has 16 Indian companies in its portfolio, including the unicorn startups—those valued at more than $1 billion—Byju’s, Dream11, Flipkart, Hike, Swiggy and Udaan. Other companies in which it has a stake include Ibibo Group, KhataBook, MyGate, NewsDog and Practo. All of these companies are visible and flag bearers of the Indian startup ecosystem.

Another set of investors are Chinese venture capital firms, and 41 of them have invested into Indian startups. Shunwei Capital leads with 16 portfolio companies, Cashify, Chalo, Clipapp and KrazyBee, to name a few. It is followed by Swastika, with 12 companies including HelloDhobi, InstaCar, Makkajai, Pickrr and Pocketin.

In all, these 69 Chinese companies and VCs have invested in 104 Indian startups. In the overall Indian startup landscape, that’s a small patch. Only 17 of these companies and VCs had more than one company from India. According to available data, till the end of last year, 6,114 Indian startups had received funding. Unlike trade, investment in India is a small space for China so far.

Most Popular

Farmers turn down sarkari lunch, carry food wrapped in foil

Leaders of the protesting farmers refused the lunch offered by the Centre at Vigyan Bhavan on Thursday. Instead, they ate the lunch...

Kartik Aaryan’s Dhamaka to go on floors next week

Kartik Aaryan's Dhamaka will be helmed by Ram Madhvani and produced under the banner of Ronnie Screwvala’s RSVP Films. The film will mark the first collaboration between the actor and the director.

Aditya Narayan and Shweta Agarwal wedding: Here’s a look at grand wedding reception

At the grand reception, the newly-wed were joined by several celebrities from Bollywood as well as the television industry. Actor Govinda, with wife Sunita, daughter Tina and son Yashvardhan, comedian Bharti Singh with husband Haarsh Limbachiyaa, television actor Ravi Dubey, choreographer Punit Pathak....

Kangana Ranaut vs Diljit Dosanjh on Twitter: From Karan Johar’s pet to mannerless mannequin

A war of words has begun between Kangana Ranaut and Punjabi singer Diljit Dosanjh after the latter took to Twitter to slam one of Ranaut's tweets for misidentifying an elderly Sikh woman who was seen at ongoing farmers' protest as Bilkis Bano of Shaheen Bagh.