This is a massive vote of confidence for India by some of the world’s largest and richest corporations like Google, Facebook, Walmart, Samsung etc. The corridors of power in New Delhi are abuzz with a document enlisting the details of the $20bn investment pledges, with the Narendra Modi cabinet convinced this is just the beginning. “This is just the start, it shows India is a very favorable investment destination,” said a senior member of the government.
All of this also coincides with Prime Minister Narendra Modi’s clarion call for Atmanirbhar Bharat that is to be self-reliant and have Made In India supply solutions. To revive the corona-ravaged economy, PM Modi promised a Rs 20 lakh crore package that would touch upon four Ls: land, labour, liquidity and laws.
Below, are the investments and pledges by global giants in the April to July period. It should not come as a surprise but most of the $20 billion investment commitments have a common theme, and that is Reliance Jio. After all, Mukesh Ambani’s Jio has raised well over Rs 1.5 lakh crore during the pandemic.
The investors include:
Google: Pledged the largest at $10 billion, which also makes up half of the total $20 billion of investments and commitments. And, Google will invest nearly half of this $10 billion in the Reliance Jio platform for a 7.7 per cent stake as announced by Mukesh Ambani as the 43rd Annual General Meeting of Reliance Industries. Google pledged the $10bn after its global chief Sundar Pichai met with PM Modi virtually.
Facebook: It started the innings for large investments during the pandemic. The Mark Zuckerberg-owned Facebook owns a 9.9 per cent stake of Reliance Jio, which it bought for $5.7 billion, and marks Facebook’s biggest single investment in another company. For now, Facebook and Jio are focussing on merchants and commerce via JioMart and Whatsapp.
Saudi Arabia’s PIF: One of the world’s largest sovereign wealth funds, it announced an investment of around $1.6 billion in the Rel Jio platform.
Walmart: Its already deeply committed to India, and has been since its $16 billion purchase of Flipkart two years ago. It recently infused another $1.2 billion in Flipkart and increased its majority stake.
Foxconn: The maker of Apple’s iPhones is expected to initially increase its India investment by $1 billion; government sources say this may go up as a strong pitch is being made to Apple to shift manufacturing from China to India.
Thomson: It’s a French consumer electronic brand that has committed another $142.8 million to India. Thomson entered India in 2018, and claims to have a 5 per cent market share in smart TVs. It recently started selling washing machines on Flipkart, which Thomson says are all Made In India.
WeWork Global: It announced another $100 million investment for India’s arm in June to help tide over the pandemic, and even grow the co-working business.
Qualcomm Ventures: It invested $97 million in Reliance Jio platforms. Its an American venture capital firm founded in 2000 and has over 140 portfolio companies.
Kia Motors: The South Korean carmaker was in top gear before the pandemic, overtaking Toyota and Honda in monthly sales and long waitlists. It’s investing another $54 million in its factory in Andhra Pradesh.
Hitachi: The Japanese major will be investing $15.9 million for the order of 400 electric locomotives it won from the Indian Railways recently.
Six more global companies are either entering India or expanding existing operations. Their investment details have not been disclosed. They are:
Samsung: The South Korean giant has launched a new 4G-enabled smartwatch that will be manufactured in India. It already manufactures its full range of 18 smartphones in the country.
Hyundai Mobis: The South Korean auto components company is expanding its technical centre in India, and strengthening R&D activities in India, especially for autonomous vehicles.
Via Times now news
