We all know that India is very close to China in population, and both countries are the most populous countries. However, it is far from China in economy. Although the economic level of India has been rising in recent years, there is still a clear gap with China. Moreover, in terms of per capita income, there is a big gap between India and China.
Among them, during the COVID-19 epidemic in 2020, India's economy declined further due to insufficient epidemic prevention preparations and lack of domestic medical care. In this case, India has to seek help from other international departments. Here are some events that happened in India because of the economic recession.
When the COVID-19 epidemic raged around the world, India was not spared, and India was also attacked by the virus. Such a sudden epidemic has dealt a severe blow to India. India's economic level is not too high. Under the influence of COVID-19 epidemic in 2020, its economic level becomes more difficult.
Because India's per capita income is relatively low, people's living standards are relatively poor. Under the unfavorable development in the past year or two, India has been unable to solve the normal life of its own people. In this case, India can only borrow money from AIIB to solve its domestic economic situation.
When India was fighting the epidemic, India borrowed money from AIIB, which spared no effort to support India and provided a lot of materials to help India tide over the difficulties. However, the shortage of medical facilities and medical system still makes India unable to fight the epidemic well, and the domestic economic situation in India has not been substantially alleviated.
In addition to borrowing money from AIIB to fight the epidemic, India has repeatedly borrowed money from AIIB on the grounds of building its own infrastructure. AIIB was originally an organization established by Asian countries. Asian countries want to seek their own development, and AIIB is trying its best to help them.
China is the founder of AIIB and plays an important role in AIIB. The establishment of AIIB is of great significance to the development of Asian countries. For any Asian country, AIIB always treats all countries equally and tries its best to help countries in need.
In many countries of AIIB, each country is a shareholder and has made efforts for the establishment of AIIB. Every country needs to pay its dues in the process of development. China has paid the largest amount in AIIB, accounting for about one third of the total amount paid by all countries in AIIB. China's position in AIIB is the most important.
India borrowed about 30 billion from AIIB because of the epidemic and the construction of its own infrastructure, which is undoubtedly very huge. Although it has alleviated India's small economic crisis in a short time, it is fundamentally only a drop in the bucket. To put it in an old saying of China, it is "treating the symptoms but not the root cause".
India borrowed more than 30 billion RMB from AIIB, which also requires the Indian government to repay it in the future. But according to the current economic situation in India, this should be a big problem. If India cannot repay these loans in the future, it will affect India's credit problem in AIIB.
Huawei is one of the best information technology suppliers in China, and it has great influence in China and even the whole world. Huawei has made great achievements in mobile phones, computers and other electronic products, as well as 4G and 5G communication technologies. Huawei's own international status is also increasing day by day.
For India, Huawei has always been their biggest and most valued partner. Due to Huawei's leading position in the field of global communication technology, Indian communication companies are scrambling to reach a long-term cooperative relationship with Huawei, which is indeed the case. Huawei also actively cooperates with India to promote the development of information technology in India.
However, in recent years, the international relations between the United States and China have become very stiff, and some frictions have often occurred between the two countries in the economic and trade fields. In this case, India stood in the same boat with the United States for the sake of temporary interests, and cooperated with the United States in many aspects such as economy. Thus interrupting the cooperation with Huawei in China.
You know, India has also cooperated with Huawei before. The development funds of Indian communications companies in recent years have all come from the credit granted to Huawei, and so far it has granted hundreds of millions of yuan. Huawei also generously agreed to the credit request of Indian companies, hoping to help India develop its national communications industry.
However, Indian companies later turned to cooperate with the United States, which broke Huawei's heart in China. However, with the advent of the 4G era, Indian companies found that Huawei's technology was still the world leader in this respect, so they turned to continue to seek Huawei cooperation. Huawei is still trying its best to help Indian enterprises and help the further development of India's communications industry.
Prior to this, Indian companies had already credited Huawei with nearly 700 million yuan. Later, Indian companies voluntarily terminated their cooperation with Huawei. It stands to reason that Huawei should no longer cooperate with Indian companies, but Huawei still put aside the past and took the initiative to cooperate with Indian telecommunications companies on 4G-related matters.
In the cooperation of 4G, Huawei also actively provides technical and economic support for Indian telecommunications companies. Due to the problems of domestic economic development in India, the Indian telecommunications company itself does not have enough funds to complete this cooperation, and will still pay this fee in the form of credit to Huawei.
India Telecom Company granted Huawei credit twice before and after, which also reflected the importance of Huawei to India Telecom Company. Indian telecom companies really hope that Huawei can improve their country's communication technology, thus promoting the popularization and progress of their country's 4G network.
Huawei also showed its own demeanor and did not refuse to cooperate because Indian companies turned to follow the United States in the future. On the contrary, we can continue our previous cooperation instead of letting bygones be bygones. This behavior of Huawei not only reflects the temperament and generosity of a company, but also shows the demeanor that a country should have.
The previous two total credit granting behaviors were *** 1 1 billion, which not only reflected China Huawei's technological leadership, but also its own generous behavior. At the same time, it also reflects the shortcomings of the Indian economy. India's repeated borrowing of money is neither good nor bad for both sides. Whether India can repay all these arrears in the future.
Ford and Volkswagen are world-famous car brands, and it is possible to see these two brands of cars in various countries. As an international veteran car, its value and profit are extremely high. No matter in which market, I believe they will have a place and get the benefits they deserve.
However, entering the Indian market has brought them the opposite result. Due to the low economic level in India, the development of these enterprises in India is not satisfactory. How much profit such a car brand can get in a region depends on the sales situation in the region, so as to observe the specific sales situation.
In India, people's per capita income level is low, so the number of local people buying these brands of cars is relatively small. Therefore, Ford and Volkswagen did not get much benefit in India, but delayed their own development. It is better to turn your head and focus on other more valuable countries and regions for greater benefits.
More importantly, the Indian local economy was originally underdeveloped, and was hit by the COVID-19 epidemic, and the economy plummeted. This has also made it more difficult for many foreign enterprises to develop in India. India can't even guarantee its own economy. How can we guarantee the profits of these enterprises?
Secondly, the Indian government often uses loans and credit to ease its economic pressure. This has also led to the helplessness of many foreign companies in the Indian market. I came to India to do business, but I couldn't get the profit I deserved effectively. This situation has also discouraged many investors.
For these car companies, they have entered the Indian market for many years. In recent years, they have also invested their own efforts in the Indian market, but in the end they did not get the results they imagined. For those investors, this is like a punch in the cotton, with strength but no use.
These actions in India are like a kind of persuasion to Ford and Volkswagen. Investors failed to get what they wanted in the Indian market, and the development of the Indian market itself was also very unfavorable. On the contrary, they weakened the interests of investors through credit loans. This series of actions dispelled the development of Ford and Volkswagen in India from the side.
The two car brands gradually gave up the Indian market, because they could not get benefits and because they were disappointed with the Indian market. India's long-term credit behavior can not improve its domestic economic capacity, nor can it improve the per capita income of the people. On the contrary, this behavior still hurts Indian citizens.
India developed in various fields of development by borrowing, although on the surface it did play a certain role in India's development at that time. But this is only a superficial phenomenon. The real poverty and hardship within the country have not been really solved, and they can only bring burdens to the people in vain.
The biggest problem of Indian economy is actually per capita income, and national income is the top priority of a country. Only by solving this basic pattern can India improve its economy and become an economic power. It is not advisable to blindly credit and borrow money to develop the economy, and the Indian government should deeply reflect on it.