Indian Economics Thread II
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It was probably made in China like the other statue Modi installed, lol.
The Delhi High Court allowed the unfreezing of Vivo's bank accounts, but required the Chinese handset maker to provide banks with guarantees of up to 9.5 billion Indian rupees (S $167 million).
In addition to the hefty guarantee, the court also instructed Vivo to keep a balance of Rs 2.5 crore in the account, according to bloomberg, Reuters, Economic Times of India and Jiemian News.
Vivo had sought from the Delhi High Court to overturn the enforcement Bureau's decision to freeze the company's bank accounts, saying the move was illegal and would harm the company's business operations, the report said, citing legal documents. The document also said Vivo would not be able to pay legal dues and salaries due to the frozen accounts.
In response, the Delhi High Court gave the Directorate of Enforcement until Wednesday to make a decision on Vivo's request.
The enforcement agency raided Vivo India and its dealers last Tuesday for allegedly violating the Prevention of Money Laundering Act.
Vivo responded at the time that it was "cooperating with relevant Indian authorities and providing them with all the information they need. As a responsible company, we strictly comply with all laws and regulations in India."
--167 million dollars? Good bye India we will never see each other in the future
Why India such mean to foreign companies I can't understand.
In addition to the hefty guarantee, the court also instructed Vivo to keep a balance of Rs 2.5 crore in the account, according to bloomberg, Reuters, Economic Times of India and Jiemian News.
Vivo had sought from the Delhi High Court to overturn the enforcement Bureau's decision to freeze the company's bank accounts, saying the move was illegal and would harm the company's business operations, the report said, citing legal documents. The document also said Vivo would not be able to pay legal dues and salaries due to the frozen accounts.
In response, the Delhi High Court gave the Directorate of Enforcement until Wednesday to make a decision on Vivo's request.
The enforcement agency raided Vivo India and its dealers last Tuesday for allegedly violating the Prevention of Money Laundering Act.
Vivo responded at the time that it was "cooperating with relevant Indian authorities and providing them with all the information they need. As a responsible company, we strictly comply with all laws and regulations in India."
--167 million dollars? Good bye India we will never see each other in the future
Why India such mean to foreign companies I can't understand.
India has been doing "harassment campaigns" against many Chinese OEMs in recent months. Xiaomi was also a target not too long ago.
I think the objective is clear: try to pave the way for domestic champions by harassing the international competition. The Indian government is betting tens of billions of USD - a lot of money in a very poor country - on building their semiconductor supply chain. They also want to create domestic champions to challenge the Chinese hegemony over smartphones in Android ecosystem.
It's the usual Indian story: domestic protectionism without international competitiveness. Maybe they will succeed with the help of their government, but only domestically. Who would ever buy an Indian brand?
I think the objective is clear: try to pave the way for domestic champions by harassing the international competition. The Indian government is betting tens of billions of USD - a lot of money in a very poor country - on building their semiconductor supply chain. They also want to create domestic champions to challenge the Chinese hegemony over smartphones in Android ecosystem.
It's the usual Indian story: domestic protectionism without international competitiveness. Maybe they will succeed with the help of their government, but only domestically. Who would ever buy an Indian brand?
Hendrik_2000
Lieutenant General
Well India also harassed other multinational. I don't know what are they thinking. These 2 authors bemoan India failure to attract FDI
Given its economic gap with China, and the needs of its growing population, it would seem reasonable that India would want to attract FDI. But between 2019 and 2021, the share of global to India have shrunk, from 3.4 percent to 2.8 percent. Meanwhile, China’s share of global FDI rose from 14.5 percent to 20.3 percent.
Even though the U.S., Europe, Australia and Japan all see India as their future partner, their corporations are pulling out or reducing the size of their operations in India. Swiss building-materials firm Holcim, Royal Bank of Scotland, Harley-Davidson and Citibank have already announced plans to downsize or leave India.
German retailer is selling off its Indian operation after two decades. Both Company and announced they had put on hold plans to make electric vehicles (EVs) in India. This decision, at a time when the Indian government is championing renewable energy, is related to India’s high tariff and tax barriers.
This week, French spirits group Pernod Ricard, maker of Chivas and Absolut, announced a decision to place new Indian investments on hold because of “” tax disputes with local authorities that date back almost 30 years.
Some $100 million in assets of Amway, the American multi-level marketing company that sells health, beauty and home care products, have been frozen by Indian law enforcement while the company is for ostensibly “operating a pyramid scheme.” Ironically, the company has done business in India for three decades with the same business model of direct selling.
Moreover, Ricard is not the only international business facing taxation challenges in India. IBM has had $865 million stuck in an escrow account since 2009 while a over retroactive tax meanders through India’s legal system. India could have used IBM’s nearly $1 billion if put to productive use.
Two U.K.-based companies – Telecom giant Vodafone and energy company Cairn –were hit with large capital gains tax demands based on legal changes after mergers or acquisitions. The Indian government took one decade to rollback its retroactive taxation policy, only India lost two cases at the World Bank’s International Center for Settlement of Investment Disputes (ICSID) and The Hague tribunal.
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