Indian government has directed mobile phone companies, operating in India, to not to get engaged in any kind of business deal with Chinese telecommunications manufacturers, i.e. Huawei and ZTE, reported Indian media citing head of India’s main cellular industry trade group.
Despite the fact that Indian Government didn’t issue any official statement, however, it has stopped approving imports from Huawei and ZTE. This is not a formal policy yet, but it is being executed at full scale.
This move by the Government of India has resulted into a complete halt of all operations of Chinese Companies. Reportedly, Huawei and ZTE offices in China are in state of emergency, and are looking into all possible options to resolve the situation.
This is not the first time that India has violated World Trade Organization (WTO) norms by smacking the trade protectionism and discriminating the business activities in India.
Indian Government has always adopted this policy whenever the business entity is in any sort of relation with Pakistan or it is doing business in Pakistan.
In past, Telcordia a vendor of back-end software for wireless and fixed-line networks, sold its software to several cell phone companies in Pakistan just as it has done in 14 other countries, but Telcordia did not know its business interests will be greatly hampered in India merely due to its business relations in Pakistan.
Telenor’s fate was also not different, when Foreign Investment Promotion Board (FIPB) questioned it about operations in Pakistan.
Analysts opine anti Pakistan sentiments in India is the main reason behind fateful decisions taken against three companies, and maybe more to come.
Mindful of the fact of its business interests, besides sentiments of nationalism, India eventually resorted to give these companies the nod but only after authorities there clearly indicated they had problems with companies’ business interests in Pakistan.
Indecisive attitude and procrastination of authorities land investors in a state of doubt about seriousness of Indian government to attract foreign investment.
This is beyond any iota of doubt India is worried at unprecedented growth of Telecom in Pakistan, and this is why it has repeatedly used un-comprehendible ways to hinder growth of companies operating in Pakistan.
But the latest move by India is beyond the threshold level, according to some analysts. An official from a cellular company operating in Pakistan commented that this is rather kiddish than a security check. “It doesn’t mean that Orascom can’t operate in Pakistan as it has ties with Israel”, he said. Multinational companies are business entities and they earn business unlike what India suspects them, he concluded.
Indian government should understand multi national companies would not yield by these intimidating tactics.
Regardless of law & order situation in the country, Pakistan provides an investor friendly atmosphere, millions of heads, cheap labour, a thriving and ever expanding middle class, educated English speaking work force and lucrative returns.
