According to the Global Network, the data released by the Indian government shows that in the past 7 years, about 2783 foreign companies have "run away" from India, accounting for 23% of the total number of existing foreign companies in India. Among them, there are a large number of well-known foreign-funded enterprises such as Ford and METRO that have fixed factories in India.
It is reasonable to say that India is in the stage of transformation from a backward agricultural country to an advanced industrial country, and it is reasonable to find ways to retain these multinational enterprises, such as giving various preferential policies and financial support. However, from a realistic point of view, India's poor business environment, especially the extreme unfriendliness to foreign investment, makes it difficult for many foreign companies to invest in India for a long time, and even has a "deterrent" mentality for the country. Despite the many efforts made by the Modi government to improve India's business environment, it is impossible to reverse this situation in just a few years.
We know that the political situation in India has been in a state of instability. As a multi-party state, it is easy for India to have the phenomenon of "new officials taking office and not recognizing old accounts".
As a simple example, during the reign of the Indian Congress Party, the British telecom giant Vodafone acquired the telecommunications business of companies from other countries in India, because the transaction subjects were not in India, so they did not pay taxes to the Indian government. But the Indian government believes that "as long as you are running a business in India, even the equity must be taxed." As a result, the Indian government fought a lawsuit with "Vodafone", and the Supreme Court of India could not find the irregularities of "Vodafone" within the legal framework at that time, so it ruled that "Vodafone" won the case.
However, when the BJP came to power, it not only rejected the previous judgment of the Supreme Court, but also directly amended the law to require "Vodafone" to indirectly acquire Indian enterprises, and must pay taxes to India... The lawsuit lasted for more than a decade, and finally the patience of vodafone was finally exhausted, and it could not swallow the bitter fruit and gave up the Indian telecommunications market. Some Western media lamented that in doing business in India, multinational companies must always beware of India's "tax terrorism". The practice of arbitrarily demanding money from foreign companies under the banner of the state shows the greed and short-sightedness of the Indian top level...
Not only that, India's import tariff is 20%, if it is an industrial finished product such as automobiles, the import tariff may exceed 100%. The Modi government calls it "fair competition" and is actually trying to protect Indian companies that produce and sell similar products, the typical "trade barriers." But even so, products such as "Made in India" cars and motorcycles are still difficult to match foreign products...
Not long ago, India launched a so-called "investigation" into China's VIVO and Xiaomi and other enterprises, and even unilaterally froze the bank accounts of a number of Chinese companies in India before obtaining sufficient evidence. All of the above can be called "open plunder", and it is the Indian government interfering with and destroying the normal law of market operation by artificial means. In the long run, there will only be more and more foreign investment "fleeing" India.