One of the flagship schemes of Narendra Modi was Make-In-India. Under this scheme international companies were invited to set up manufacturing facilities in India and use the talent and resources available in the country.
But going by what is happening in the automobile industry, it seems the entire exercise was just for optics. Many established companies have exited India, many have scaled down their operations, many have announced that they will no longer be doing any further investment in their Indian operations.
But the case of Great Wall Motors takes the cake.
This Chinese company entered into an agreement with GM to take over their Talegaon plant if necessary regulatory approvals came in.
And they waited.
After waiting for two years, they have decided to shut shop. The employees have been terminated with three months of pay and the agreement with GM has been cancelled.
The company was planning to invest around 1 Billion US Dollar in India. At current exchange rate that works out to 8000 Crores.
It has now shifted its focus to Brazil and is planning to invest 2 Billion, double of what it was planning in India, in that country.
So much for Modi’s Make-In-India.
I think someone forgot to tell Great Wall Motors that before they Make-In-India they have to look into Electoral Bonds….