India has slipped to 37th position among 60 major economies in the world in terms of their attractiveness to Chinese firms. Meanwhile, Singapore surpassed the United States to emerge as the top destination for overseas investments from China in this year’s China Going Global Investment Index 2017.
The index was released by The Economist Intelligence Unit (EIU) and ranks 60 major economies in terms of their attractiveness to Chinese firms. The EIU is the research and analysis division of The Economist Group which covers the automotive, consumer goods, energy, financial services, and healthcare sectors.
According to the findings, the US came in second followed by Hong Kong (3rd), Malaysia (4th), Australia (5th) and India stands far behind at 37th down by 6 ranks. BRICS partner Brazil also faces a drop down and slipped by 19 positions to 53rd rank, reported Business Insider.
However, tensions in trade and foreign bilateral relations with China have caused a drop in the ranking of several major economies, including the US and India. Complicated domestic politics and dimmer economic prospects have lowered the index rankings of Brazil and the United Kingdom, the report added.
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Among BRICS economies, Russia’s index rank moved up by six places to 11th, with its economic prospects having improved owing to higher commodity prices, while South Africa’s rank has risen by six places to 44th.
Several developed economies have tumbled down the index: the UK slipped the most, by 29 places to 41st, owing to the worsened outlook for economic growth following its decision to leave the EU.
Despite challenges for Chinese investors in India, the country’s growth prospects are the brightest across major economies and several Chinese companies, such as Huawei and Xiaomi have built successful businesses there.
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Of many investments happening across automobile industry, metallurgical industries, electrical equipments and industrial machinery, Indian startups have also got some chunk of Chinese investments made by the tech giants such as Baidu, Alibaba, Tencent, and Xiaomi or BATx.
The industry experts believe that in the startup ecosystem, the two countries share many similarities such as a huge population, mobile-first approach, similar consumer spending habits and income levels; which make India a favourable spending ground for these Chinese tech companies.