This Chinese component maker is going to invest $1 billion in India

Chinese component maker Holitech Technology, which makes LCD and touchscreen panels for mobile phones, is going to invest a whopping $1 billion in India.

Bingshuang Chen, chief executive of Holitech Technology, said the company was waiting for research and development (R&D) expertise to grow in India.

"From our point of view, next year will be best time for us to enter the country...It (investment) could be as big as $1billion considering the requirement of facilities, equipment and all other technical aspects,” he told ET.

A high-level Chinese delegation is in India.

"If Foxconn has not got its own component makers yet, why would others take the plunge. Indian handset makers are already purchasing components from China, so there needs be a compelling business driver for Chinese component makers to invest heavily locally," Vishal Tripathi, research director at Gartner India, told ET.

This investment comes at a time when states such as Uttar Pradesh, Telangana, Haryana etc are vying for Chinese investments and are luring them with developed land and skilled manpower.

UP secretary for information technology, Sanjiv Saran said the state will soon begin giving 200% refundable VAT (value-added tax) to companies for building manufacturing units in the state.

"We have created the most aggressive industrial policy and we have given approval to 2,500 companies in the last 18 months, half of them have started operations,” Sujai Karampuri, director of Telangana government's information technology department, told ET.

Devender Singh, principal secretary of IT and electronics in the Haryana government, said, “We are also offering special incentives for mega projects of more than Rs 100 crore.”