About a dozen Chinese electronics manufacturers today expressed keen interest in setting up production facilities in India, specially for mobile phones, which could entail a huge investment of $ 2-3 billion.
“Chinese companies are quite enthusiastic about setting up manufacturing base in India either on their own or in partnership with Indian companies,” Mobile World (Shoujibao) Wu said at China-India Mobile Phone & Component Manufacturing Summit here.
The Chinese companies showed keen interest in setting up manufacturing facilities in India include Huaqin, Tinno, Windtech, Sprocomm, Vsun, Chino-e, besides electronics component makers.
“India today is the fastest growing mobile phone market globally and for Chinese industry presents the biggest manufacturing. We are very keen to tap the potential,” Tecno Vice President Zhong Qi said.
Tecno is a major mobile phone manufacturer based in China but sells its product outside China.
“We are quite impressed that the progressive policies of Modi government and new manufacturing eco-system is very encouraging development for investment and business,” Wu said.
“Going by the encouraging response of Chinese companies and definitive joint collaboration talks between Indian and Chinese mobile and handset manufacturers, Chinese investment of USD 2-3 billion over next two years in this sector looks like a real possibility along with employment for 1-2 lakh people,” ICA National President Pankaj Mohindroo said.
Government officials from different states also made efforts to woo Chinese firms to their states.
“We work very closely with investors. Andhra Pradesh is ranked number two in terms of various compliances with regard to ease of doing business in India. We understand investors need and hence our state is creating Chinese enclave. It will not only have good physical infrastructure but also attractive social infrastructure,” AP Director for Department of Industries Kartikeya Mishra said.
Mohindroo, who also heads The Fast Track Task Force (FTTF) set up by government, said that the summit has offered Chinese investors a formal and credible channel to make investments in India.
“The summit opens up floodgates for Chinese companies who want to invest in India. Earlier a formal channel was lacking. Chinese companies are looking at India because of the investor friendly government and its policies, its proximity with Africa and lower cost of production,” he said.