India's government hopes that as the country moves toward becoming the "world's workshop," hundreds of Chinese companies will become part of India's industry.
China has actively entered Indian markets in recent years with Lenovo Group announcing that it began making smartphones in the Indian city of Chennai on Tuesday while Foxconn, the maker of iPhones, plans to open a plant in each Indian state. As China's internal economic situation becomes more difficult, and cheap labor becomes harder to find, Chinese companies are looking to India for expansion.
"Chinese companies have expressed a serious interest in participating in the Made in India program, while Indian companies hope to establish themselves in China," Secretary of India's Department of Industrial Policy Amitabh Kant told Sputnik.
"By 2022, India plans to receive up to 100 gigawatts of electricity from renewable sources. There are many advantages here. Local industry and paths for procuring supplies are very cheap," a representative of IBM India Prashant Pradhan said.
Chinese companies have also begun actively studying the Indian market. Over 70 representatives of state and private firms came to India from China's inland Hubei province alone.
"In recent years, economic and trade ties of India and China have noticeably strengthened. In 2000, trade between our countries amounted to only $3 billion, this year it grew to 72 billion," Kant added.
With the current rate of growth, it is estimated that as many as 100 Chinese plants will open in India in the next three to four years.
