Due to the increasing tension between America and China and the changing business environment in China, 50 American companies are preparing to close their business from there. The total investment of these companies is Rs 12 lakh crore. Out of these, 15 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 of investors by surpassing Mexico, America and Europe. Last year India was ranked 5th for investment, while this year it has reached the second position. South East Asia is at number one. Let us tell you that Indonesia, Singapore and Malaysia still remain the choice of investors. China is losing the priority of investors.
Management consulting companies are giving priority to India
India is becoming a growing priority for management-related companies. Last year, 40% of US 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 changed their investment direction to India.
Apart from this, the garment and manufacturing sector has also expressed its preference for investing in India. Most of the 306 American companies included in the ACK report believed that a favorable environment is being created for investment in India. India's large market is also encouraging them.
Companies are not liking China's strict policies
After Corona, there have been many major changes in the investment environment in China, which foreign companies are not liking. The Xi Jinping government has changed policies to deal with challenges like unemployment and aging population, but these changes have shaken the confidence of investors.
The unemployment rate among 16 to 24 year olds in China has reached 21.3%, which is the highest in 3 decades. Along with this, the ageing population of the country has also become a big problem, which has affected the production capacity. Amidst these economic and social challenges, there are also questions on China's economic stability.
Graphics Source: VaskarAssets
