If you want to experience what it's like to throw money into a black hole, invest in India. This is the evaluation given by Wall Street in the United States. It is understood that in the past less than a decade, more than 2,000 multinational companies have withdrawn from India. On the Internet, there are even more popular sayings that India makes money with Indian flowers, and one wants to take home. And if you want to go to India to do business, it is simply an old lady practicing forks at a high altitude, and the difficulty is not general. We all know that India has excellent conditions such as a large labor force and a large market, which makes the giant enterprises in various countries come to build factories and want to make a lot of money.
Before the start, the small abacus of these enterprises did not mention how loud the fight was, but also showed a look of full confidence and determination to win. But what? When he really came to India, he was crying without tears by the Indian pit and fled back to China even night. And this also allows the world to see how bad India really is. Even so, there are still companies that are not afraid of death to build factories, and then they were tortured by India for 12 years, and finally roared that they would never go to India again, and this company is South Korea's POSCO, as the world's leader in the steel industry, it has not escaped from the clutches of India. Welcome to Houlang Science Popularization said, in this issue, Xiaobian tells you the story of the world's first and the universe's first love and killing. I also hope that all the officials will point out their praise and support, and thank you again.
South Korea's POSCO and India's love and killing
One morning in 2016, India's New Delhi International Airport received a large order, a group of South Koreans want to charter a special plane back to China, claiming to pay three times the price, but there is only one requirement that must be set off today, which can make India happy, and soon arranged a passenger plane for it, when this group of Koreans arrived at the airport, they directly took out three times the price, and said to take off quickly, after a series of checks by the staff, they immediately took off to South Korea. After getting off the plane, the Group of South Koreans all knelt on the ground and cried, and finally fled India. The Indian government was very uncomfortable after learning about it, because the big wrongs that gave them money for free were gone.
And the reason for this happened to start from 2003, when the company because of the domestic raw material prices rose, labor costs increased and a series of factors, wanted to transfer the industry outward, so POSCO began to look for a suitable country in the world, at first they wanted to build a factory in China, but after an inspection, felt that there was no oil and water to build a factory in China, looking for a year later, India entered the eyes of the enterprise, when India wanted to join the permanent council, it began to frantically attract investment, Hopefully, I can catch big fish. And it just so happens that the South Korean company took the bait, after an inspection, the company and India hit it off, after consultation, decided to spend 12 billion US dollars by South Korea to build a steel plant in the Indian state of Olissa, at this time the South Koreans laughed not to mention how happy, only to spend 12 billion to build a steel plant, which can not lie down to make money? And the Indians are also happy to blossom in their hearts, and finally a big injustice has been planted.
South Korea's POSCO has a difficult road to build a factory
On the second day after signing the contract, the South Koreans could not wait to go with India, the approval process, did not expect the first negotiation to plant the first big heel, you know, India is notoriously delayed, according to the design bank data, in India want to register a business, need to go through 12 steps, apply for a building permit also need 34 steps and 110 days. This is not the Korean first found the Indian Land and Resources Bureau, and then the resources bureau said, you are not complete, please go to the tax department to complete the formalities again, and then the group came to the tax section, when the mention of the factory, the tax section said that India has set up a special committee for it, you go to contact them.
Then the South Koreans can find the committee, originally thought that this is the end, and then the committee claimed, we need to report to the steel office, wait a month, the steel office came to the news, telling them that they need to report this matter to the prime minister, which also made the South Koreans very speechless, your prime minister personally signed the contract, how do you need to report it? South Korea then continued to wait, and three months later, Indian officials sent news claiming that there was no problem with the document, which was another step back into the hands of the Indian Land Bureau. The Koreans thought they could start work, but they were once again harassed by the Land Bureau, and the Koreans also understood that they wanted money! Then the South Koreans used money to open up various departments, the procedures came down immediately, really have money to do things quickly, and then just when they were ready to start construction, India directly said that you have to pay money to the Forestry Bureau and the Wildlife Bureau to start building factories, which is simply outrageous.
At this time, the Koreans wanted to give up the idea of building a factory, but they invested so much that they couldn't bear it, so they handed over the money, and then told you that we only provided you with 3500 hectares of land, and the remaining 500 hectares of land needed to consult with the local residents. Unexpectedly, the residents of India taught them the first lesson of their lives. Having money doesn't necessarily solve it. In 2006, South Korea began to build factories, and at first, as Koreans thought, the money was in place and the residents signed an agreement. But the next day, a group of local residents blocked the door, claiming that in order to protect the environment, they did not want Koreans to build factories here, and this reason was no one, look at your Ganges River.
After two years of operation, it can be regarded as solving the local government's land and environmental permits, as well as nail household problems, mining rights, ports have also responded to approval, after everything is ready, an NGO jumped out and claimed to protect the environment, the permit was revoked by the Indian government, the reason is because of strong opposition from the residents, after a year, finally solved all the mess, should have been built, but the Indian officials came, Claiming that not only can not build the factory, but also to pay liquidated damages, because the contract states that if the work is not started within five years, it will have to pay 10% of the liquidated damages, that is, 1.2 billion US dollars, but South Korea rejects this unreasonable demand and returns to China.
Then in order to coax this big wrong back, the Indian government was also deceived, and finally in 2016, Pohang was coaxed back, but at first there was no abnormality, but the low quality and laziness of the staff made them feel very helpless, but after all, it was much better than before and there was not much investigation. Until the completion of the steel structure plant, the Koreans felt that they could make a lot of money, but the day after the completion, the Koreans were dumbfounded, the hard-working factory, actually disappeared out of thin air, after inquiring, it was learned that this was to let the nearby residents sell, and then immediately contacted the special plane to return to the mainland. And is this strange operation in India finished? This is just the beginning.
Many international giant enterprises can not escape the clutches of India
You know, since the founding of India, it has always had the dream of becoming a new "world factory", and the United States has given great help, but the results have not been satisfactory. As early as 1996, McDonald's entered the Indian market, but until now it has only developed more than 300 stores, and as for why the development is so pitiful, it is still to blame India.
In 2001, McDonald's in India can be described as popular, but at this time, three Indian businessmen in Seattle, found that McDonald's use of beef juice, to know that cattle in India is more noble than people, this news in India, was strongly condemned, there are extremists, directly holding a bucket of paint, running to the McDonald's store directly splashed, which makes McDonald's have to stand up and apologize, to know that people use beef juice in the United States, what is the relationship with people in India, can be imagined, This is just a routine used by the Indian government to circle money.
In addition to McDonald's in the United States, there is also the famous American retail company Wal-Mart, which set up a joint venture company in India in 2006, and then developed very well, but six years later, when the eighth branch was opened, the Indian relevant departments listed several major crimes, including bribery of Indian officials, insufficient localization of products, and 100 million loans to Indian groups. In 2014, India's former finance minister threatened to change the law to prevent foreign retail businesses from entering the Indian market, which directly scared Walmart off and lost billions of dollars. And such an example is well known in India.
In 2007, british telecommunications giant Vofonda, after acquiring 67% of the equity of India Hutchison in Li Ka-shing's hands, was subject to India's 2 billion sky-high tax, the company's registered place is actually in the Cayman Islands, so the acquisition did not occur in India, the transfer is not an Indian company, just a business, but in the face of 2 billion sky-high taxes, Vodafone directly sued it to the court, and finally the Indian Supreme Court, ruling that India's 1961 implementation of the income tax law is not clearly stipulated, So in 2012, Vodafone won the lawsuit and did not need to pay money, but the result was that the Indian tax department, in 2012, asked Congress to amend the relevant content of the income law, which the Indian Supreme Court saw the basis and ruled that Vodafone lost the lawsuit, and this time it was not $2 billion, but more than $5 billion. In the end, under the international arbitration court, coupled with the coercion of Britain, France and other countries, it was finally over.
Not only that, but also Pepsi, Coca-Cola, the United States IBM, Tesla, Ford and many other companies, have been pit against India, which also makes Indian foreign investment is still an international joke, although Modi came to power after the rectification, but still not ideal, from the global business environment report, India in more than 190 countries, can only rank 130th, India can be said to have smashed its own dream of being a big country. In this era of globalization, it is obviously impossible for India to rely on investment promotion to improve itself. After all, India has always maintained the idea of welcoming investment and not wanting to make money. So do you have anything to say about India's investment promotion? Feel free to leave a comment in the comments section to discuss, we will see you in the next issue.