On May 22nd, Dow Polyurethanes, a Dow Chemical Company, the second largest chemical company in the world, announced that it will open a new polyurethane factory in Maharashtra, India. The plant has increased production capacity and Technical capabilities, providing high quality polyurethane materials and customized solutions to customers in the region, serving the growing market sector and further consolidating Dow's investment in the region.
India is the number one power in the subcontinent of South Asia. Its economic strength should not be underestimated. India has the second largest population after China, and its economic development prospects have always attracted the attention of the international community. With the ongoing reform of the Indian government, there are international Experts and analysts believe that with the advantage of demographic dividend and government promotion, India is expected to replace China and become a new world factory. Relevant data show that in 2017 India's economic growth rate was 7.2%, which is the seventh largest economy in the world. Economically With rapid growth, along with the deepening of government reforms, India may make it to the international stage in the near future.
Leaders frequently visit, repeatedly brush their presence
As the leader of the world’s fastest growing economy, the new leaders of India have been in the world’s major countries since their appointment. The two-time visit to China by the Prime Minister of India within a few weeks is even more attractive to the world. Eyeballs. In addition, on the 21st of this month, the Indian Prime Minister went to the Russian Sochi to hold informal talks with the Russian President. The Indian Minister of State for Foreign Affairs went to Pyongyang, North Korea, to meet with the DPRK Foreign Minister on 15-16th.
According to relevant experts, frequent visits by Indian leaders are intended to give a full sense of presence in the international community. Whether it is the Iranian nuclear issue or the DPRK nuclear issue, India wants to utter its own voice. Because India is positioning itself as a 'Great Country Club'. The members', but their leaders are very clear, it is their domestic economic strength and economic development that hinder India from becoming a true 'big country club member'. Leaders frequent visits, largely because they hope to get the world’s economic development in India. Support from all countries, especially China.
The government creates conditions to attract foreign investment
Since becoming the new government leader in office in 2014, India has embarked on drastic reforms, especially the GST tax reform. The tax system reform aims to establish a unified national taxation system and break the trade barriers among the various countries in the country. A unified Indian market attracts investors from all over the world. For the plastics machinery industry, India also has a series of preferential measures, such as: Providing preferential policies for site selection and taxation for press companies entering India, and world famous universities Cooperate to establish a plastic university to cultivate specialized talents.
A series of preferential policies of the Indian government has attracted many well-known international companies. Only the press industry has Husky, Wimbledon Batten, Solvay, Covestro and other international famous brands, and Haitian, Qiaobo and Shunde Engineering. Are waiting for domestic well-known plastic enterprises, have successfully entered the Indian market.
For Chinese enterprises, it is both an opportunity and a challenge
For Chinese companies, India’s opening of the domestic market to attract cross-border investment is both an opportunity and a challenge.
Compared with China, India has certain advantages in many fields. China’s demographic dividend gradually disappears, labor prices continue to rise, and labour cost advantages cease. In contrast, India not only has a population base that is not inferior to China, but also has the largest number in the world. Population structure and superior labor force structure. According to the World Bank statistics for 2016, the population of India is 1.324 billion, a difference of only 5,500 million from China’s 1.379 billion. The median age of the Indian population is 27.6 years, and that of China is 37.1 years. Population structure, abundant labor resources, so that India does not have to consider too much labor costs in the process of undertaking industrial transfer.
In addition, the Indian government has not only reformed its tax system, but India has also made sufficient efforts to resolve fiscal deficits, agrarian reforms, and strengthening infrastructure construction. In particular, it has strengthened infrastructure construction, which not only strengthens the links between Indian states. Improve the investment environment, it is to increase the speed of circulation of goods and create favorable conditions for the entry of external capital.
The Indian market facing such a huge development space is an opportunity for presses companies and is undoubtedly a great challenge. Although India hopes that Chinese companies can invest in India, India launched anti-dumping measures against fluorocarbons in China earlier this year. The survey shows that China's plastic companies need to develop a reasonable entry strategy to enter the Indian market. They must use the concept of 'serving India' to integrate themselves into Indian society as far as possible so as to obtain a stable development environment.