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India`s smart cities attract Chinese investors, experts caution about `risk factors`
India has become a major investment destination for the Chinese companies.
New Delhi: Chinese companies are showing an increasing interest in Indian start-ups and the government's ambitious Smart Cities Mission, with experts reminding that the investors should factor-in risks and challenges, as per a report in Chinese media.
A Global Times report said that India has become a major investment destination for the Chinese companies.
Recently, eight Indian startups managed to secure funding commitments to the tune of USD 30 million at the 2nd Startup India Investment Seminar held at Beijing. Around 20 Indian startups pitched for attracting Chinese investment from 350 representatives of leading Chinese Venture Capitalists who attended the event.
Quoting experts, the Global Times said “the prospective smart cities must show they can generate returns for investors”
The smart cities mission, launched in 2015, aims to tackle the escalating problems in urban areas with regards to transportation, energy supply, governance, basic urban infrastructure services and overall quality of life.
Zhao Gancheng, director of the South Asia Studies Department at the Shanghai Institute for International Studies, told the Global Times that the smart cities “need to establish business-friendly environments and facilitate policies for investors”
As per India's housing ministry estimate, the total proposed investment in the finally selected 100 cities under the Smart Cities Mission is Rs 2,05,018 crores.
Zhao however cautioned that Chinese companies, seeking opportunities in the smart city project, should “lower their risks by getting familiar with India's investment environment, such as relevant laws and regulations".
Anarock Property Consultants had in June this year estimated that 5 percent of the proposed projects are completed so far. However, as per a recent report in the HT Media, 20 of the total 100 smart cities will be completed by 2021.
A smart city rankings by the ministry of urban development showed that tier-II smart cities of Nagpur, Vadodara and Ahmedabad topped the charts, leaving behind tier 1 cities such as Pune, Chennai and many others.