Summary: India’s foreign exchange reserve was Rs 39.64 trillion the week up to September 4, 2020. India is the fourth-largest unicorn base in the world with over 21 unicorns collectively valued at US$ 73.2 billion, as per the Hurun Global Unicorn List. By 2025, India is expected to have 100 unicorns by 2025 which will create 1.1 million direct jobs. The mergers and acquisition (M&A) activity in India stood at US$ 35.1 billion in the first half of 2020, while private equity (PE) deals stood at US$ 13 billion.
India’s Foreign Direct Investment (FDI) equity inflow reached US$ 469.99 billion between April 2000 to March 2020, with maximum contribution from services, computer software and hardware, telecommunications, construction, trading, and automobiles. India improved its ranking in the World Bank’s Ease of Doing Business Report by 14 spots over last year. By seeing the success of India few countries inimical to the rise of India are attacking it indirectly. They do not want to see the rise of a democratic India, a developed and a liberalized India. It is clear beyond doubt that such forces are intervening to tarnish India’s reputation as an investment hub through incidents like the one at the iPhone manufacturing facility in Karnataka.
India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years. India’s GDP is expected to reach US$ 5 trillion by FY25 and achieve upper-middle income status on the back of digitization, globalization, favorable demographics, and reforms. India’s foreign exchange reserve is Rs 39.64 trillion (US$ 542.01 billion) in the week up to September 4, 2020. India is the fourth-largest unicorn base in the world with over 21 unicorns collectively valued at US$ 73.2 billion, as per the Hurun Global Unicorn List. By 2025, India is expected to have 100 unicorns by 2025 which will create 1.1 million direct jobs according to the Nasscom-Zinnov report ‘Indian Tech Start-up’.
After fighting COVID -19, and witnessing an improvement in the economic scenario, there have been investments across various sectors of the economy. The mergers and acquisition (M&A) activity in India stood at US$ 35.1 billion in the first half of 2020, while private equity (PE) deals stood at US$ 13 billion. India’s Foreign Direct Investment (FDI) equity inflow reached US$ 469.99 billion between April 2000 to March 2020, with maximum contribution from services, computer software and hardware, telecommunications, construction, trading, and automobiles.
India improved its ranking in the World Bank’s Ease of Doing Business Report by 14 spots over last year and was ranked 63 among 190 countries in the 2020 edition of the report. After the US-China Trade War, many companies from the US, Japan, Korea, Taiwan, and Europe are coming to India to do business and be part of government initiatives like Make in India and Digital India. The Make in India initiative for the manufacturing sector aims to take manufacturing to 25% of the GDP from the current 17%. The Digital India initiative which focuses on three core components: the creation of digital infrastructure, delivering services digitally, and increasing digital literacy aims to drive the economy of the nation.
Presently America has emerged as the second-biggest source of foreign direct investment (FDI) into India, replacing Mauritius, during the first half of the current financial year. During April-September 2020, India attracted FDI worth $7.12 billion from the U.S. and $2 billion from Mauritius, which slipped to the fourth position. Singapore with $8.30 billion foreign inflows continued to be the top source of FDI for India in April-September 2020-21. The country has received $2.1 billion inflows from the Cayman Islands. This was followed by Netherlands ($1.5 billion), U.K. ($1.35 billion), France ($1.13 billion), Japan ($653 million), Germany ($202 million), and Cyprus ($48 million). According to experts, increasing FDI from the U.S. reflects the further strengthening of economic ties between the two countries. The U.S. was also India’s top trading partner in 2019-20. Foreign inflows into India grew by 15% to USD 30 billion during the first half of the current fiscal. In August, the country had attracted $17.5 billion worth of foreign investments.
By seeing the success of India few countries inimical to the rise of India are attacking it indirectly. They do not want to see the rise of a democratic India, a developed and a liberalized India. They do not want India to be a $5 Trillion economy or a vibrant nation for FDI or any Technological Transfer. They want India that is backward, war-stricken, a victim of terror attacks, suffering from protests and strikes every day. They wish for an India that suffers from diseases, pollution, blackouts, water problems, and turn into an unsafe place for business. They want India to be paralyzed and Indians to be looked down upon. They are using Indians themselves to achieve this goal. They are systematically supported by the Lutyens cabal, Urban Naxals, few Communists, and so-called progressives.
Pakistan wants to bleed India every second, minute, and hour and it has been at it for days, months, and years. From Parliament attack, Mumbai attack to Pathankot and Uri, they are bleeding India though our forces have kept them at bay. Now it’s ally and India’s neighbor, China, wants to ensure that India can never emerge strong, both economically and politically. They have wooed Lutyens cabal, Urban Naxals, few Communists, and so-called progressives to achieve their goal. They want to ensure that nobody except them should do business in India. Today, trade relationships, connectivity projects, technology choices, and financial exposure are the key factors. Now China is trying to stop investments in India. It is blatantly engaging in economic diplomacy to “Finish India Economy.”
The attack on the iPhone manufacturing plant, run by Taiwan-based tech giant Wistron Corporation at Narsapura is an instance. A majority of the nearly 2,000 employees, who were exiting the facility after completing their night-shift, went on a rampage destroying the company’s furniture, assembly units and even attempted to set fire to vehicles. Wistron had received 43 acres at Narasapura industrial area from the state government after it proposed to invest around Rs 2,900 crore and give employment to over 10,000 people. The Narasapura facility is being used to manufacture Apple’s smartphone iPhone SE, Internet of Things (IoT) products, and biotech devices. The company suffered a loss of more than 50 crores while thousands of iPhones were robbed too. After Covid-19, when the world wants to invest in India, a concrete effort is being made to destabilize India and stop FDI from friendly countries like Taiwan.
Communist Party of India and its student wing Students’ Federation of India (SFI) are on the radar as ‘Comrade Srikanth’, who is a taluk president of SFI in Kolar, was detained by the Kolar police in connection with vandalism at the Wistron plant. Reportedly, the employees of Wistron and SFI had planned to hold a protest outside Kolar Collector Sathyabhama’s office at 11 am on December 12. The police officials said that Srikanth allegedly curated the WhatsApp message, calling for the protest that was later circulated widely among employees. The Kolar Rural Police said that Srikanth instigated several SFI activists, who then entered Wistron’s premises on the morning of December 12, and actively participated in the vandalism that happened in the plant.
Interestingly, the SFI leader’s arrest comes after Communist party-affiliated trade unions defended the vandalism and claimed that they were protesting against the non-payment of salaries. Contrary to the claims of Communist-affiliated trade unions, the Labour department of Karnataka had asserted that the organisation has been regularly paying salaries to its employees and there was only a 4-day delay this month due to a software bug. Chinese propagandists threaten other companies moving from China to India. China has warned that companies that move their production lines out may face such vandalism and loss to the business.
Then came the statements from China. “The incident may raise eyebrows concerning the investment environment of India’s manufacturing sector. Violent protests and strikes are common in India. Given the abject poverty faced by large proportions of the population, this is often the only way they can defend their rights and interests. Hundreds of thousands of farmers have been gathering at the Indian capital for weeks to protest against reforms that the government believes will give farmers more choice. Several large-scale strikes also occurred in southern India, including the one that involved over 3,000 workers at two Toyota Kirloskar Motor Private Limited-owned car assembly plants in November. At a time when India’s economic and social stability is besieged, the idea of absorbing China’s industrial transfer seems like nothing but a fantasy”
Later Chinese netizens called for Apple to move to manufacture back to China. “Factories in China are safest to invest in. The probability of smashing and burning in China is extremely low,” commented a Chinese netizen named ilife on Sina-Weibo. “Move to China, China welcomes you!” said another Chinese netizen named fangchuancun. But Wistron Corporation denied this claim, responding that the strike was not instigated by employees and blaming an unidentified outside group.
There are powerful vested interests in India and abroad who do not want a strong and vibrant nation. They want to stop FDI in India in all sectors. They do not want hardware, biotech, and agriculture manufacturing to emerge in India. They want strikes every day, loot, protests, blackouts, water shortages, wars, terror attacks, so that investors are scared. But these forces should understand that India has a strong leadership today with 1.3 billion citizens behind them who together can stop their nefarious designs.
When Indian pharma companies worked on COVID-19, diplomats of 60 countries were shown our indigenous work and were assured all help to collaborate and cooperate. That is how India works – by cooperation. We do not want to spoil the economy or snatch jobs from other countries. We do not wish to force countries into a debt trap or engage in water-trap or land-trap diplomacy. We are a responsible nation with a thriving democracy. That is our strength. Once we fight back, our detractors will lose their identity. For now, the 1.3 billion citizens have the responsibility to stand as one. Let us talk, discuss and come to mutually agreed solutions. Strikes, protests, and loot will not help anyone. Indians have to work as one to make it the best destination for investments.
(Disclaimer: The views expressed are those of the author and do not necessarily reflect the official views or position of SamvadaWorld)
M.AM.PhiL/(PhD SNU South Korea)
Sahana A 
Saisha Kamla Dudha
Yes indirectly attacking on the iPhone by using outside district people…
Really it’s huge loss to the company and this has made unemployed…around 10000 people…. it is huge loss nation because of useless brains had involved in this.
Security TEAM need to be strengthen at WISTRON to avoid such situation, Knowing its a Taiwan company and some vested group will take advantage.