China News Service, August 18 (Xinhua) According to a comprehensive report, recently, India's "Business Standard" quoted data from the country's Ministry of Corporate Affairs to report that since 2017, although the number of companies registered in India has increased by 11.4% to 5,035. The number of companies "active" in India is now smaller than it was then.
Data map: Rs.
As many as 2,783 foreign companies have left India from 2014 to November 2021, according to data published by the Indian Minister of Commerce and Industry, cited by the Economic Times of India.
Among them are well-known multinational companies such as Ford, General Motors, and Harley-Davidson.
What exactly makes foreign companies "come and go" in India?
Although on the one hand, this is related to the failure of multinational companies to open up the price-sensitive Indian market, or their own strategies such as corporate restructuring and turning to green development.
But on the other hand, India's business environment is not "friendly" enough for foreign companies.
According to the U.S. State Department's 2021 Investment Climate Report, India "remains a challenging place to do business" despite the implementation of structural economic reforms to optimize the business environment.
The report pointed out that there are many new protectionist measures in India, including high tariffs, procurement rules that restrict competitive options, sanitary and phytosanitary measures that are not based on science, and India-specific standards that do not meet international standards.
These measures effectively limit the expansion of bilateral trade.
The "Deccan Herald" pointed out in a report that India has been suffering from "management of cholesterol".
Governments at all levels in India have enacted laws, regulations, etc., which hinder the smooth flow of funds, organizations, and business ideas.
India's high tariffs and tax disputes have also "dissuaded" many multinational companies.
Former U.S. President Trump once said, "India may be the country with the highest tariffs in the world." The Deccan Herald pointed out that complex standards and frameworks cause confusion, but simplifying these systems will lead to the loss of tax revenue, and India urgently needs to find A balance that is attractive to multinational corporations.
In addition, acquiring land has also become a major problem for multinational companies to establish a foothold in India.
India's the print news network pointed out that the country's strict land laws have prevented manufacturing expansion and hit foreign investors.