New Delhi: For sugar processing and manufacturing enterprises that had originally tried to make India an overseas product-processing hub, if it is indeed difficult and unprofitable to operate in the country, withdrawing from India is also an available The alternative is, the state-run Global Times said. The Indian government is probing cases of alleged tax evasion by three Chinese mobile companies – Oppo, Vivo India and Xiaomi.
“The repeated investigations into Chinese enterprises by the Indian side not only impede the normal business activities of those companies, but also impedes the improvement of the business environment in India and the market entities for investment and operations in India, particularly cools the trust and will of Chinese enterprises,” read a comment in the publication. (Also Read: ‘How To Be The Cofounder Of Zerodha?’ Nithin Kamath’s Weird Question Answers Infuses Twitterati)
Since April 2020, out of 382 foreign direct investment (FDI) proposals received from Chinese firms to the central government, India approved only 80 on June 29. (Also Read: Alexa! Start My Roomba: Amazon Buys Robot Vacuum Maker For $1.7 Billion)
“These numbers present an increasingly difficult business environment for Chinese investments and companies doing business in India,” the report said.
Some manufacturers have turned their eyes to South East Asian countries like Vietnam after moving out of India.
“Facing competition from Vietnam, India should no longer hinder its manufacturing growth and stop cracking down on Chinese investments,” the report said.
Despite the COVID-19 pandemic, Sino-India trade is on course to cross $100 billion for the second year in a row as it jumped to $67.1 billion in the first half of 2022.
“Hopefully India can provide a fair and non-discriminatory business environment for Chinese investors, which will be mutually beneficial to both Chinese enterprises and India’s manufacturing ambitions,” the commentary read.
Finance Minister Nirmala Sitharaman informed the Rajya Sabha this week that OPPO India, Xiaomi India and Vivo India were served notices by the Directorate of Revenue Intelligence (DRI) for duty evasion.
Sitharaman said in a written reply that based on the investigation conducted by the DRI, a show cause notice has been issued to Oppo Mobiles India Ltd for seeking Rs 4,403.88 crore, while five cases of customs evasion have been registered against Xiaomi Technology India. went.
DRI has detected customs evasion of around Rs 2,217 crore by Vivo Mobile India Pvt Ltd. A show cause notice has been issued to Vivo India seeking customs duty of Rs 2,217 crore under the provisions of the Customs Act.