Companies Returning to India for Investment, Had Left a Few Years Ago

In 2022, Ford, a car manufacturing company, announced that it was shutting down its business in India. This was a major blow to India’s ‘Make in India’ plan.

Car manufacturing company Ford announced a few years ago that it was shutting down its business in India. Ford had stated that it had incurred a loss of over two billion dollars in the last 10 years. In 2019, the company suffered a massive loss of 80 crore Indian rupees. Due to a decline in demand during the Covid-19 pandemic, the company had to leave India. Not just Ford, but General Motors in 2017, Harley-Davidson in 2020, and Carrefour, Europe’s second-largest retail chain, in 2014, had also shut down their cash-and-carry stores in India and announced the closure of their business. Apart from this, companies like Walmart, Metro, and Sweden’s largest furnishing company, IKEA, had either shut down their business in India or faced significant difficulties in operating here.

However, things are slowly changing now. Companies that had left India are once again investing in the Indian market. Many experts believe that India’s rapid economic growth rate and economic reforms are attracting foreign investors. India’s large consumer market and rapid economic growth rate are the main reasons why foreign investors are returning.

Harley-Davidson Returns to India

In addition, the American giant Harley-Davidson announced its return to India last year. The company had partnered with Hero MotoCorp to invest in a joint venture and re-enter the Indian market. China’s fashion giant, Shen, has also re-entered India by partnering with Reliance Retail.

Carrefour Will Also Invest in India

Carrefour has also announced its return to India. The company’s re-investment in India is a crucial part of its 2026 development plan. Walmart had already established a foothold in the Indian market by acquiring Flipkart. Experts believe that India’s large consumer market, rapid economic growth, and the government’s economic reforms are attracting foreign investors. India’s vast geographical area and rapid economic growth rate are the main reasons why foreign investors are attracted to the country.

Tech Giant Extends Its Hand

American tech giant Apple and South Korea’s Samsung have set up their manufacturing plants in India. These plants were previously located in China. Experts believe that the main reason for this is India’s large consumer market and rapid economic growth rate.