In recent years, more and more chinese refrigeration enterprises open plants in India. Both in terms of the number of factories and the amount of investment have increased rapidly. Among them, there are many refrigeration giants, such as Midea, Haier, TCL, HIGHLY and so on.
India's economic growth is considered to be the fastest in the world. In 2018, India's GDP grew by 7.4%, totaling about $2.716 trillion. In the same year, India's total trade imports and exports amounted to 837 billion US dollars, accounting for 2.1% of the total global trade. Among them, India's total exports were about US$326 billion, up 9% year-on-year; India's total imports were about US$511 billion, up 14% year-on-year.
According to statistics, India's GDP in the first quarter of this year reached about 711.605 billion US dollars, and its economic growth rate was 5.8%. Its economic scale surpassed that of Britain and France, ranking fifth in the world.
Such economic growth gives India's leadership a lot of confidence. Recently, Indian Prime Minister Modi said he hoped that India's GDP would exceed $5 trillion when he was re-elected in 2024.
According to data from the Ministry of Commerce, the bilateral trade volume between China and India was 95.54 billion U.S. dollars in 2018, a year-on-year increase of 13.2%. Among them, China exported US$76.71 billion to India, up 12.7% year-on-year; and imported US$18.83 billion from India, up 15.2% year-on-year. According to Chinese statistics, as of the end of 2017, China has invested a total of 4.747 billion US dollars in India.
With the booming bilateral trade between China and India, India has become an investment hot spot for China's refrigeration giants.
01
Midea Group
Midea Group invested 1.35 billion Indian rupees (about 1.27 billion yuan) in the Midea Science and Technology Park, laying the foundation in Supa Parner, Maharashtra, India, on November 3, 2018. The park will be composed of three major manufacturing plants. IIt is expected to be put into operation in early 2020. It will produce refrigerator, washing machine, water purifier, water heater and other household appliances, as well as HVAC, air conditioning compressor, etc. This will further promote the globalization of Midea Group.
02
Haier Group
On September 7, 2018, the signing ceremony of Haier Industrial Park was held in Lucknow, the capital of Uttar Pradesh, India. According to the agreement, Haier Group will build a second industrial park in India in two phases in the next four years. The industrial park is located in the Noida Industrial Corridor in the northern state of India, close to the capital New Delhi. The industrial park is expected to invest 286 million US dollars, covers an area of about 500,000 square meters, and has a construction area of about 280,000 square meters. It mainly produces refrigerators, washing machines, air conditioners and other products. The first phase of the industrial park is expected to be put into operation by the end of 2020, and the second phase is expected to be put into operation by the end of 2022.
It is understood that in the 14 years since entering the Indian market, Haier Group has headquartered in New Delhi and has more than 30 marketing and sales centers in Mumbai and other places. The Haier Group set up the Pune plant in India in 2007 to open a localization tour. In November 2017, the Pune Industrial Park was officially put into operation, which is the first industrial park built by Haier Group in India.
03
HIGHLY Group
Shanghai HIGHLY Group, invested in Gujarat State of India and invested 71.8 million US dollars to established its first overseas factory in Ahmedabad City, the largest city in the state in 2013. It completed the fourth phase of HIGHLY Indian factory by the end of 2016, forming an annual production capacity of 2 million air conditioning compressors.
04
TCL Group
In 2018, both the TCL brand and its sub-brands have stepped up their efforts to open up the Indian market. Li Dongsheng, chairman of TCL Corporation, said this year that TCL is planning to set up a factory in India in the future.
What are the reasons for the giants to invest?
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Geographical factor: India has a unique location
India is surrounded by the sea on three sides, facing the vast Indian Ocean, and there are many important energy lines in the Indian Ocean. In addition, the Indian Navy can quickly reach the Persian Gulf, which has a rare geographical advantage for the Middle East and Southeast Asia.
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Demographic factor: population bonus
Because India has a population of about 1.3 billion and is growing rapidly and continuously. Especially because of its abundant labor force, it has become an important factor for the international economic community to be optimistic about the future of India. It is widely believed that India's demographic dividend period is just beginning. Most of them are young, which brings a lot of labor to India. According to a United Nations survey, India will become the world's largest labor market in the next 30 years or more. The Indian government also regards the huge labor force as a necessary factor to become a world power.
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Manufacturing factor: the rise of manufacturing
Since 2014, the Modi government in India has been promoting the “Made in India” program, with the ultimate goal of making India the center of global manufacturing. The strategy seems to be gradually achieving results.
Electronic products manufacturers such as Samsung, Toshiba, Panasonic and Sony are considering cutting investment in China's manufacturing industry and turning their attention to countries such as India. Even domestic manufacturers are shifting more of their business abroad to become more competitive on a global scale.
The trend of low-cost manufacturing may be unstoppable.
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Educational factor: scientific and technological competitiveness and talent advantages are significant
Due to some historical reasons, Indian English is popular and the teaching language used by higher education institutions is English. Indian college students can get important information about the development of science and technology in the world smoothly. Relatively speaking, India has more international exchange talents than other developing countries.
In addition, a large number of talents have emerged in the computer software industry and the pharmaceutical industry.
Indian growth is a kind of economic growth guided by the high-speed growth of IT industry (information technology industry), which has a great impact on the world, and has strong R&D ability and independent innovation ability.
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Other factor: policy factors and the international situation
India has avoided the main battlefield of world trade. In recent years, it has unified the national consumption tax, promoted urbanization, and ushered in new investment opportunities. In the context of Sino-US trade frictions, Chinese companies also hope to diversify their overseas markets.
