In the past seven years, about three thousand companies have already left India, so what is the lure? Well, just like what happens everywhere, someone leaves and another takes over the shop space as soon as possible hoping to cash in. Sure, while some leave, others may have decided to go into India, but the investment money falls short of what had been taken out, and foreign direct investment shows a negative picture.
In China, Volkswagen sales have been plunging. Volkswagen is probably looking at the Indian market going forward, but that is dependent on whether India is able to produce enough middle-class citizens to afford a car. In fact, this is the bet of most companies trying to shift production to India. But lifting most Indians out of poverty is not that easy and trying to imitate China is a hard act to follow and near impossibility.
Anonymous
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