Mahindra Group Chairman Anand Mahindra Wednesday said a wave of Chinese investment in India may be imminent in the wake of intensifying trade war between the US and China.
Commenting on reports that US President Donald Trump will meet his Chinese counterpart Xi Jinping next month, in a tweet Mahindra said, "Even if they settle, a Chinese firm with large exports to the US would be wise to hedge & invest in a subsidiary in India & transfer its scale-manufacturing skills."
He further said, "Direct exports would simply become indirect. A wave of Chinese investment in India may be imminent..."
His comments come at a time when the US-China trade dispute escalated on Monday when Beijing announced levies duty on US products of USD 60 billion.
The Chinese move was in retaliation to the higher tariff by Washington, which had last week said it planned to impose 25 per cent levies on nearly Chinese products of USD 200 billion.
Mahindra also said, "Many Indian companies will take advantage of the opportunity as well..."
Responding to a query by a follower on whether the Chinese investment will protect the local interest, he said, "It will create jobs - of the kind India needs..."