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June, 2016

  • BATWe live in an interesting investment climate, where India and China can’t either do with or without each other. Cross border investments in online apps and platforms are breaking traditional barriers and creating healthy, profitable companies for both nations.

    For the Indian start-up market to flourish, Chinese investments are important and a vital cog in the wheel that will turn the Indian economy around. For Chinese investors, India is a massive market, similar to theirs, with a huge growth potential. Smell a win-win situation?

    Yet there are hurdles, a lack of political will and diplomatic trust enter at various points in a healthy India-China relationship to often mar the smooth functioning and often put a spanner in the works. However, since there is a strong potential that the bond between India and China will withstand political head winds, Inchin Closer takes a look at the India strategy for the Big 3 Chinese investment heavy weights – Baidu, Alibaba and Tencent – or BAT as they are more commonly referred to. The article aims to demonstrate where these investment bell weathers are now and the direction they are looking at. It is expected to foretell, the direction Chinese investments into India will take and subsequently how the rest will follow.

    ALIBABA: A scion for a variety of low priced goods, Alibaba has recently tied up with Indian payments gateways Paytm to initially allow select Indian Indian sellers to source products from China at cheaper rates as well as help them with logistics and payments. India is an inevitable market for Alibaba for whom a developing market in search of cheap goods is perfect, as compared to Europe. As a result, Alibaba India already has 4.5 million registered users, making it the world’s second largest market for Alibaba after China. Additionally, Alibaba invested US$680 million into Paytm last September making it the largest investor in the mobile payments leader. In October, Alibaba joined softbank to invest US$125 million out of a consolidated investment of US$500 million into Snapdeal an online shopping portal.

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  • jaitley + guoliIndian Finance Minister Arun Jaitley is on a five day tour of China to pitch for Chinese investments from the slowing Chinese economy. India which is on a growth trajectory is aiming for 7.5 to 8 percent GDP growth at a time when China’s GDP has decelerated to 7 percent. While the Chinese are interested in investing in India – a neighbour and a large market most investors are yet skeptical on her policies. Mr. Jaitley’s aim is to convince Chinese bankers and wealth fund managers to invest in India.

    The finance minister is not alone. His visit was proceeded by the Chief Minister of several Indian states, the last being Mr. Shivraj Singh Chouhan, the CM of India’s central and second largest state Madhya Pradesh who was in Beijing, Shanghai and Guangzhou last week with a 20+ member business delegation to pump investments into his state. Madhya Pradesh has already allotted land at Pithampur towards Chinese investments in automobiles, pharmaceuticals and technology and has promised massive discounts in land, taxes and electricity.

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  • NSG

    ~ By Charmaine Mirza

    The Asian hotpot is simmering again. India’s bid to join the Nuclear Suppliers Group (NSG) has put Sino-Indian geopolitics back in focus – this time with the added masala of India’s arch nemesis and China’s ally: Pakistan.

    The Nuclear Suppliers Group is a group of nuclear supplier countries, which aim to stave off nuclear proliferation by monitoring exports of raw materials, equipment and technology that can be deployed to create nuclear weapons.

    China is spearheading strong resistance from a handful of member countries to India’s NSG bid.

    Beijing’s official party line is that India has not signed the Non Proliferation Treaty (NPT), which is a vital criterion for membership to the NSG.

    The not-so-subtle subtext is that Pakistan has also retaliated to India’s NSG bid with one of its own – and China is the key instigator behind Pakistan’s nuclear program.

    In an ironic twist of fate, India will have to bear the brunt of Pakistan’s poor track record. If Pakistan doesn’t get in, India’s not getting China’s vote.

    If Pakistan has built its nuclear resources from the ground up, it is largely due to the fact that China has supported it consistently, in gross violation of its own commitment to the NSG. Given Pakistan’s dubious track record of harbouring terrorists (it hasn’t signed the NPT either) and the fact that the father of its nuclear program sold nuclear technology and secrets to Iran and North Korea, red flags are waving madly across the globe about its acceptance into the NSG.

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