Why is India allowing Chinese companies like Xioami to invest freely in Indian markets while that fre m is not enjoyed by Indian companies in China?




Prabudh Sharma, knows a bit about public policy

The tone of the question suggests that one is assuming that Indian go nment or a part of it is selling Indian interest to China or somehow Xiaomi’s entry into India will be harmful for us. Although , I do not deny that there might be some argument that favours both the aforementioned points but it must be investigated further


1st - when go nment of India imposes FDI caps on a particular sector, those caps are not country specific. Cabinet committee on security will review proposals in critical sectors and if no threat to national security is ascertained , approval will be granted

2nd - the extent to which a country allows foreign investment in a particular sector depends upon their requirement. China may not be open in all sectors but in areas where they believe the domestic capacity might not be sufficient they will ask for outside investment. for eg, China is one of the worlds largest pharma producers but it still wants Indian pharma companies to set shop their as their internal demand cannot be met [ Read : China rolls out sops for investments to Indian pharma companies - The Economic Times ]

1 -当印度政府对某一特定行业设置外国直接投资上限时,这些上限并不针对具体国家。内阁安全委员会将审查重点行业的提案,如果没有确定对国家安全的威胁,将予以批准。

2 -一个国家在多大程度上允许外国投资于某一特定行业取决于他们的要求。中国可能不会对所有行业都开放,但在他们认为国内产能可能不充足的领域,会寻求外部投资。例如,中国是世界上最大的制药商之一,但它仍然希望印度制药公司进入中国,因为他们的内部需求无法得到满足。

3rd - when Xiaomi sets up shop in India and starts producing here, it will build India’s capacity, improve our technological know - how , give jobs to Indian labour , give a push to Indian export, help generate demand for thousands of small scale procures in India. Only benefit to the Chinese owners will get , are the increased dividends which the Indian arm of Xiaomi will pay out to its Chinese shareholder

Thus, to sum it up Xiaomi is allowed as it will help India’s growth and the argument that China is not open to Indian companies is not entirely accurate

3 -当小米在印度设立工厂并开始在印度生产时,它将构造印度的能力,提高我们的技术水平,给印度劳动力提供工作机会,推动印度出口,帮助印度形成成千上万的小规模采购需求。唯一对中国股东有利的是,小米印度子公司向中国股东支付的股息将增加。



Amit Shroff, A disappointed user of this pathetic brand Xiaomi.

I am not sure the reason behind this, but the best way to stop them is boycott these companies and their product. These Chinese companies like Xioami are just fooling us by selling sub standard product.


1.Relationship - I think Indian go nment are trying to make a hearty relationship with China, but I feel they are forgetting the ground rule. It should be a mutual beneficial relationship, currently it is looking like one side.

2.Capabilities - In past 15 to 20 years, most of the product imported in India are Chinese and domestic manufacturing units are either making losses or have shut down. Hence I believe the go nment think, the best way would be to bring in the expertise from countries like China. Not sure how they would benefit us.



Now, if you consider looking at Xioami, I am not sure if they are investing to build India or investing to cheat india, consider looking at some major issues with this brand.

1.Extremely Poor Quality of Product - Within 1 or 2 month of purchase, Issues like Display Screen Issue, mother board, signal reception, defective charger etc start.

2.Pathetic Service Center - They don’t have parts to repair handset, so takes months to do, since 95% of devices sold in India are defective.

3.Pathetic Job Work - A local mobile phone repairing shop next to your home or offices does a better job.

4.Pathetic Customer Support - They would not listen and understand your concern. In short no point calling or email them. They would do nothing to solve your problem.

5.No Contacts - There is no way you can escalate your issues since nobody is available and Chinese owners are sitting in China, making fun of Indians.


1.产品质量极差-在购买后1 - 2个月内,就开始出现显示屏问题、主板问题、信号接收问题、充电器故障等问题。






Anuj Gaur, studied at University of Florida

China already taken advantage of USA investment and USA companies which set up their plants in China in 1990s and 2000s. China almost making everything at low cost and Chinese companies these days giving competition to American brands. We all buying Chinese product…other big expensive brands are not coming in India for manufacturing because they know Indian can not able to buy their products. If India want to take advantage of Chinese technology.. Make in India is important…this will give us experience and create supply chain in India. If one company start assemble in India this will increase value addition.. Indian need to learn fast just like Chinese Learn from American companies and start their own company.. Now you will say Chinese are getting our money…but reason is China is world factory all over human are buying Chinese technology and products.. We need to learn from China…need to create our own industry but right now 79% Indian are unskilled and inexperience…we need experience and experty first then we can think about challenge China product.



Gary Sands, Lived in Shanghai 2006-2012, lives in Vietnam, written several articles on China

In general, China likes to protect its local industry and shield them from competition until they learn enough to compete against foreign competitors. Protective tariffs have a long history - when the U.S. was building up its manufacturing capability some time ago, Alexander Hamilton was the first American to propose the use of protective tariffs to promote industrialization.

Hopefully India is getting more from Chinese investment than India can get from investing in China.




Shivam Gupta, PGDM(Marketing) from Institute of Management Technology, Ghaziabad (2021)

One of the main reason is , INDIA is slow developing nation, to boost up the process INDIA need support of the big companies which have capital as well as technology to help it while China on other hand dose not require such additional help!



Ajay Syd, basketball ,gigolo, atheist, travel, personal trainer

Because we are not competing at their level, why would they choose such a high cost phone from India when they already manufacturing high end features phones with reasonable rates

Problem is with us.. Not with them

It's all about demand.. China brands, well i prefer their rates with features





Govind Prajapat, Indian

Our PM visit the world for “Make in India”. We need it, they don’t



Ravi Teja, studied at Bachelor of Commerce Degrees

Because the only reason is we suffering lack of investments in service and manufacturing sectors.Government wants to add more jobs.Wants to increase GDP




I never heard Indian companies is not free to invest in China. It must be your thinking but not truth



Giridharan Velamore, A complete Indian by spirit

China is a far bigger economy and has a better leeway in their negotiations. We are not letting Chinese companies invest freely either. We are allowing them a good leeway in trade. They are a manufacturing giant and they are able to bring in their products freely. We do limit them in investing in Indian companies to protect ourselves. If we don't do that we will lose control of our economy.

China is very circumspect in allowing foreign companies to invest in their country. They are allowing American and other western companies to invest well but control it when they choose to. They practice a more restrictive trade as compared to India. But India too does control it the way we want to. It is just that China does it better than us. The main reason is the size of their economy which they use it to their advantage quite well. Whenever we grow big enough, we too will have a better say in the global trade.





Really? Do you see Chinese milk, clothes, shoes, cars, metal ware, toys, food, electronics flooding to Indian market? If not, believe me, your go nment is blocking Chinese investment. Particularly, even if Indians don't want to by anything from Chinese brands. At least, due to the fact that millions of Indians do not have enough to eat, they would by fertilizer. Do you see Chinese invested fertilizer factories all over India? If not, Indian go nment is blocking them



Ashish Vishnoi, works at Fluor

Politicians and go nment policies. Entire Indian go nment system is full of co ption. Politicans are the king to make money by exploiting the investor. Invest your money where you know everything very well. Indian laws are very complicated when you will disinvest and want to take your investment outside India. Investment is easy but getting back money after investment is very difficult from any developing country. There are alot of cap, tax issues and permissions



Gulshan Kumar Chandra, B.A.SOCIAL SCIENCE Regional Institute of Education, Ajmer, Banaras Hindu University (2018)

scene is bigger than what you think my friend, china is not a danger to the Indian industry because there is no Indian industry by true sense.

china is threat for Europe and america and he is developing rapidly partially at their cost therefore america wanted to stop Chinese export in his country. as far as India is concern we have efficient industry no doubt but the quality and cost is somehow missing in our product …..for example look at the nail cutter that you used its from generally Korea so china is not danger it just replace other countries in our own market.

with time India would grow its industrial power and manage to get back some part of its market. yes cheap labor matters but only availability of cheap labor is not enough we must have that quality and people who use it. by the parameter of cheap labors India and Africa have cheapest labor but both lack good industrial base





Deepak Kumar

it is already, all small industries have perished in india and traders are bringing finished low quality cheap goods from china and selling at higher profits. govt. has to stop all imports from china specially finished goods.


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