India's "pig killing plate" harvests foreign investment, and these giants are all recruited

Recently, there has been a big fuss in the financial circle: technology giant Apple suffered a big setback in India and received a sky-high fine of US$4.1 billion! As a blogger who has been paying close attention to the dynamics of multinational comp

How ridiculous is this fine? It is equivalent to 4.3% of Apple's global net profit in the 2024 fiscal year, which is enough for an ordinary person to spend more than 2 million years without eating or drinking. What is more confusing is the reason for

The operation of the Indian tax department can be called a "legal stitching freak": first, it moved out the Income Tax Law promulgated during the 1961 Foreign Exchange Crisis, saying that Apple's act of "borrowing" equipment from a foundry was an "im

What's more ironic is that Apple has been very cautious in India. It is said that for any tax issues that are not entirely clear, they will actively send letters to the Indian tax department for record, afraid of falling into trouble. However, the la

Actually, Apple is not the first foreign-funded enterprise to suffer in India. In recent years, the Indian "harvest" of giants can form a long queue, which is known as a history of foreign capital's tears and blood.

The situation of Samsung is the most unfortunate. In March this year, it was just imposed with taxes worth US$601 million by India, with the excuse of tax evasion on key telecommunications equipment imports. Samsung had imported 'remote radio frequen

The situation of Chinese companies in India is even more distressing. In 2022, Xiaomi's assets worth 4.8 billion Indian rupees were suddenly frozen on the grounds of 'illegal transfer of funds'. Despite the fact that Xiaomi had followed Indian laws a

Beyond the consumer electronics industry, foreign-funded enterprises in the automotive industry have also not been spared. Volkswagen, a German company, received a record tax bill of $1.4 billion this year, accused of 'avoiding whole vehicle tariffs

Retail giants have also suffered. Walmart has been fined $420 million for inventory management disputes, and Amazon has paid a $370 million fine for data localization issues. There is also Vodafone in the UK, which was pursued for $2 billion in taxes

Why is India so enthusiastic about imposing huge fines on foreign companies? The bottom line is the two reasons of "shortage of money" and "short-sighted protection". From an economic perspective, India has been facing fiscal pressure for years, and

The more core reason is protectionism and policy instability. India has always wanted to support local industries. It has a natural resistance to foreign-funded enterprises and feels that foreign investment has seized the market and employment opport

What is even more terrifying is India's bureaucracy and corruption. When foreign-invested companies do business in India, they have to deal with multiple government departments, and cumbersome approval procedures can drag down efficiency. What's more

Some people may ask, since India's business environment is so bad, why are there still companies willing to go? The answer is simple: he took a fancy to India's huge demographic dividend and market potential. However, India obviously regards this "ju

Apple's $4.1 billion fine may become the last straw that breaks the confidence of foreign investors. When a company cannot even avoid being 'harvested' despite operating in compliance with the law, when the law becomes a tool for arbitrary interpreta

As a financial blogger, I would like to remind all companies planning to sail to India: Although the Indian market is large, the "pit" is deeper. Investing in this place requires not only calculating the economic account, but also calculating the ris

This article is from the WeChat public account Investment Banking Circle