Low investment restrictions and favorable tax and land rent policies has prompted many Chinese businesses to head over to India in search of profits, growth and opportunities. This has led to growth in Chinese investments in India by over six-fold in 2015 to USD 870 mn. Add to this the saturation of Chinese economy, which has got the Chinese businesses to invest overseas, in which aspect India is a clear winner.

Chinese businesses have committed to make huge investments in different sectors of Indian economy under the Indian Government’s Make in India and Digital India initiative. China’s property giant Dalian Wanda Group has announced that it will invest USD 10 billion in building an industrial park in northern India. Construction machinery manufacturer Sany Heavy Industry has also revealed to invest USD 1 billion in India over next 10 years. Other big Chinese business groups like Shanghai Automotive Company, Chint group (proposed to invest USD 1.5 bn in India), Sopo Group, Dingshen, Shanghai Electric company plans to make substantial investments in India [i].

The states of Gujarat, Andhra Pradesh, Tamil Nadu and Maharashtra which can provide better infrastructure are being seen as hot spots by these companies to set up their Indian operations.

It won’t be long when companies from other parts of the world realize the true potential that India holds, as is visible from these investments from China into India.

The Indian President was also quoted as saying that India would grow at the rate of 7.5 percent over the next decade and India is too far away from any kind of economic saturation. One can also put in the fact that India emerged as one of the biggest global investment destination in 2015 and the fastest growing Emerging Economy.

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