Investment in India- the next big thing

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Nijesh Prakash, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur

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In the 13th of March 2015 edition of Financial Express, it was reported that Xiaomi has planned to start production in India in 12-18 months. Since its launch 5 years ago, Xiaomi which is currently valued at $45 billion has constantly caught the attention of common masses by providing extensive features at an affordable rate. It is already 5th largest phone company in India. Considering this background, it was inevitable that it would start production in India.

This move also shows that Indian market has a great significance in the future plans of the company. The Chinese smart phone maker is looking to invest heavily in India which strengthens the point that world is looking to invest in India. India has been infamous of putting some weird regulatory measures which has turned away many companies in the past. Hence, the government should be cautious enough to avoid such actions and cooperate fully with Xiaomi in setting up the plants.

It seems that the world is showing confidence in the new government under Mr. Narendra Modi and this must be tapped as an opportunity to lure the foreign investors. If all goes well, India might clock two digit GPD growth rate in the coming years.

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