India-China Relations Warm Up… Electronics and Automobile Giants Eye Big Profits Through New Joint Ventures

Business News: After the meeting of Prime Minister Narendra Modi and Chinese President Xi Jinping at the Shanghai Cooperation Organisation (SCO) meeting, there has been a new turn in the relations between India and China. The tension between the two countries has reduced somewhat, and now talks regarding partnership between companies are gaining momentum. Especially in sectors like electronics and automobiles, emphasis is being laid on joint ventures and strategic investments.

This meeting has taken place at a time when America has imposed heavy taxes (tariffs) on India, which is affecting the trade around the world. In such an environment, the growing closeness between India and China is being considered a good sign for the country's trade.

Higher is preparing to sell 49% stake

According to a report in the Economics Times, China's famous home appliances company Haier has almost completed preparations to sell 49% stake in its Indian subsidiary. It is being said that this deal has gained fresh momentum in the last two days. According to a senior official associated with the industry, talks with Indian industrialist Sunil Mittal were going on for a long time to buy this stake, which had recently slowed down due to some reasons. Now, Haier wants to sell 49% stake to an Indian investor, keep 49% stake for itself and give the remaining 2% to the employees of the company. Several rounds of meetings have been held between the company and merchant bankers on this proposal on Monday and Tuesday.

Dixon's big deal with China

India's largest electronic contract manufacturing company Dixon Technologies is now preparing to take big steps in collaboration with Chinese companies. The company is soon going to apply under Press Note 3 for a joint venture with China's Chongqing Yuhai. Through this partnership, high-tech components used in devices like laptops will be made in India itself. Not only this, Dixon hopes that its two more pending plans - joint ventures with HKC and Vivo will also get government approval soon.

Auto sector also hopes for relief

Many Indian companies had to face a lot of problems due to the ban on import of heavy raw earth magnets used in the manufacture of electric vehicles from China. Especially two-wheeler manufacturing companies like Bajaj Auto had to bear the brunt of this. But now it is expected that after the recent diplomatic initiative, there may be some relaxation in these restrictions, which will give great relief to the industry. A senior official of an auto component company said that after the Prime Minister's visit to China, there is now hope of improvement in the situation, and some positive steps can be seen in the coming time.

Big deal between Ashok Leyland and Hinduja Group

India's leading auto company Ashok Leyland and its parent company Hinduja Group have also taken a big step in China. The company's MD Shenu Agarwal and Hinduja Group Chairman Shom Hinduja signed an important agreement on Monday while present in China. This partnership has been done with China's CALB Group, under which work will be done together on the next generation battery technology. These batteries will be for both automobile and non-automobile sectors.

Big Indian industrialists visit China

Looking at the current environment, top officials of many big Indian companies are turning to China. Senior management of companies like Dixon Technologies, Micromax subsidiary Bhagwati Products and PG Electroplast will soon go to China to finalize potential deals. Rajesh Agarwal, director of Bhagwati Products, said, the environment was better than before for the last few months, but after the cordial meeting of the leaders of India and China, things are moving fast now. We are now preparing to finalize our joint ventures. It is clear from this that the effect of the softening of relations between the two countries is directly visible on the trade.