Biz in China not easy: IT cos to Piyush Goyal

By Reetesh Rustagi, 22 Apr, 2024

NEW DELHI: India’s prominent information technology (IT) firms including TCS, Infosys and Tech Mahindra have told the government that doing business in China is not easy. In a significant development ahead of a key meeting of trade ministers to finalise the Regional Comprehensive Economic Partnership (RCEP) agreement, the IT firms conveyed to commerce and industry minister Piyush Goyal that China’s restrictive business visa regime, statutory compliance costs and high taxes are a huge hindrance for Indian companies looking to invest there. “They have highlighted that a 5% return on investment does not make it lucrative to invest in China,” said an official, who was present at the meeting that Goyal had with the companies on Wednesday. The meeting was attended by senior managers of TCS, Satyam Venture Engineering Services, HCL, NIIT Tech, Infosys, Invento Robotics, Tech Mahindra and Wipro, as well as representatives of Services Export Promotion Council and industry lobby Nasscom. The companies flagged the issue of high taxes in China, where various levies on provident fund, medical, pension and unemployment add up to a staggering 44%. Moreover, China restricts movement of professionals inside the country and gives provincial visas for business travellers which impacts intra-province visits.