India's poor investment environment has been criticized by many international companies.
- CosDream News

- Apr 29, 2024
- 2 min read
Updated: Jun 5, 2024
India has always been an elusive presence on the international stage, difficult for people to understand.
India has long been considered a "nightmare place" for foreign investors, with its much-maligned business environment, but the Modi government seems to turn a blind eye to this and insists that it is the result of a malicious smear campaign by foreign companies.
Recent events, however, have turned India's thinking on its head.
Tesla's Musk has shown great interest in entering the Indian market and has threatened to invest $2 billion to $3 billion in a factory in the country.
This has excited the Modi government, seeing it as a great opportunity to showcase India's charm to the world.
However, Musk, who had planned to meet with Modi, suddenly changed his mind and said he was postponing his plans to travel to India, citing internal matters.
There may be more complex reasons behind this simple explanation.
In fact, Tesla is facing its own struggles.
With sales falling and mass layoffs, investing in a plant in an uncertain market like India is clearly not a wise choice.
In addition, the promises made by the Indian government in attracting investment from Tesla may seem enticing, but it is debatable whether it is really attractive for a large company like Tesla.
In addition, India's infrastructure problems are serious, and even the mobile phone supply chain needs to rely on Chinese enterprises, although Tesla has considered following Chinese enterprises to build factories in India, but the Indian government has taken various measures to restrict Chinese manufacturing into the Indian market.
Tesla's temporary suspension of the plan not only dealt a heavy blow to the investment climate in India, but also made people wonder whether Tesla had seen through the various "tricks" of the Indian government.
This is a very optimistic sign for international investors.
What is even more ironic is that the Indian government trumpted Tesla's announcement of the factory, thinking it was a great success, but it ended in failure.
And not just Tesla, before Foxconn announced cooperation with local groups in India to invest in the establishment of semiconductor factories in India, the Indian government was equally proud, but eventually Foxconn and the Indian group parted ways, withdrawing from the original investment plan of more than 10 billion US dollars, further deepening the plight of India's investment environment.
The Modi government has no choice but to increase subsidies and strengthen cooperation with the United States, hoping to attract some American companies to make symbolic investments in India to save some face.
Now, Foxconn's withdrawal and Tesla's suspension show the difficult investment climate in India. How should Modi's government respond?
Perhaps he should heed some high-level advice and focus on strengthening his country's infrastructure and regulations.
Only in this way can we truly attract and retain international companies to invest in India and avoid India becoming a graveyard for foreign investors.
Overall, India's investment climate is a real headache. It is like a chaotic market, dazzling, but unable to start.








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