Due to the growing tension between America and China and the changing business environment in China, 50 American companies are preparing to close their business there. The total investment of these companies is 12 lakh crore rupees. 15 of them want to invest in India. This claim has been made in the report of 306 companies of the American Chamber of Commerce (ACK).
According to this report, India is now becoming the top choice for investors, leaving behind Mexico, America and Europe. Last year, India was ranked 5th for investment, while this year it has moved up to the second position. South East Asia is at number one. Let us tell you that Indonesia, Singapore and Malaysia are still the choice of investors. China is losing priority among investors.
306 companies report
- 36% of companies have an annual income of Rs 50 thousand crores.
- 88% have been working in China for the last 10 years.
- 20% income from 10 thousand to 50 thousand crore rupees.
- 19% companies have 2 thousand employees. The rest are 501 to 2,000 employees.
- Only 47% of companies are optimistic about doing business in China in the next 5 years.
Management consulting companies are giving priority to India
India's choice for management related companies is steadily increasing. Last year, 40% of American companies that were previously planning to invest in China are now considering investing in India. Especially in the management consulting sector, 54% of companies have shifted their investment direction towards India.
Apart from this, the garment and manufacturing sectors have also expressed their preference for investment in India. A majority of the 306 American companies included in the ACK report believe that India is creating a favorable environment for investment. India's big market is also encouraging them.
Companies are not liking China's strict policies
After Corona, there have been many big changes in the investment environment in China, which foreign companies are not liking. Xi Jinping's government has made policy changes to address challenges such as unemployment and an aging population, but these changes have shaken investor confidence.
The unemployment rate among youth aged 16 to 24 in China has reached 21.3%, the highest in 3 decades. In addition, the country's aging population has also become a major problem, which has affected manufacturing capacity. Amid these economic and social challenges, China's economic stability is also being questioned.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
