Economy

Economic ties between India and China will continue to grow, finds CII survey

Our Bureau New Delhi | Updated on August 18, 2019 Published on August 18, 2019

Ninety eight per cent of Indian companies present in China have said they will make investments in China this year, according to a Confederation of Indian Industry (CII) survey.

Of the 57 companies surveyed, 74 per cent said the ongoing US-China trade stand-off has not had any impact on them. The survey was conducted by CII along with research and analytics service provider Evalueserve.

The survey, titled ‘Business Climate for Indian Companies in China’, also found that more IT and BPO companies plan to invest in China in 2019, compared to 2018. The business climate in China is also favourable for these companies, as two-thirds of the companies were “very profitable or profitable” in 2018.

Favourable destination

Shanghai seems to be the most favourable destination, with 72 per cent of the companies invested there. Over 70 per cent of the respondents have up to 50 employees and have localised more than half of their workforce.

“The survey of Indian companies working in China shows cautious optimism and more confidence, compared with the survey last year. Most companies do not see any significant impact from the trade tension between the US and China on their businesses,” Chandrajit Banerjee, Director-General, CII, said.

Rising labour costs, finding and retaining talent, and stricter regulations were some of the challenges that these companies faced in China, while quality of services and products were a key success factor.

“The results of the survey clearly indicate that the deep economic relationship between India and China will continue to grow,” said Sumeet Chander, Greater China Country Head, Evalueserve.

Published on August 18, 2019
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