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Indian companies in China plan to ramp up their investment and increase headcount by five times in the next two to three years, once Beijing relaxes the rules on foreign investors and operators, an expert on Sino-India commerce and trade legalities said today.
Over 100 Indian companies run their operations in China.
“Some of our clients have acknowledged the provincial Chinese governments’ support for their businesses and are planning further expansion based on these positives,” the Singapore-based lawyer with Dacheng Central Chambers LLP, Mr Rahul Singh Talwar, has said.
Dacheng Central Chambers LLP manages commerce and trade legalities for businesses working in China, Singapore and India.
“There is a renewed confidence after the Indian Prime Minister’s meeting with the Chinese President Hu Jintao at Sanya,” he said.
The Commerce and Industry Minister, Mr Anand Sharma, has also asked the Chinese Government to allow Indian companies to bid for their government contracts, especially in the information technology, pharmaceuticals and healthcare sectors.
“We are also expecting that China would change its laws on call centre services in due course, allowing foreign companies to operate such services in China.
“This will favour the Indian companies, especially given their expertise in running call centre operations of foreign countries and their presence in China,” Mr Talwar added.
While commenting on the BRICS summit being held at Sanya, he said: “All these steps are vital in taking the commerce and trade relations between China and India forward, and would lead to an increase in cross border investments.”
“We also see cash-rich Chinese companies, with superior productivity compared to their Indian counterparts, working out investment strategies for the Indian market,” he added.
Most of the Chinese companies are working in India through subsidiaries in Hong Kong and Singapore.
“Geo-political differences aside, there is willingness among Indian and Chinese businesses to work towards a goal of achieving $100-billion trade by 2015,” he said, adding that in the coming years, India and China will have to co-exist peacefully and build bilateral trade without bias.
Commenting on the targets set by global corporations for establishing manufacturing and marketing bases in the two rapidly growing economies, he said the Chinese and Indian consumers will drive the future markets.
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