Rising land prices in Pune keep foreign companies at bay

For South Korean auto companies migrating to India, a promising future and guaranteed returns is the main lookout. With the saturation of major markets in Asia, India seems to be the most viable option for such companies to go for.

Among other, Chennai and Delhi have emerged as the most preferred destination for South Korean firms to usher in their base. Pune, however, being of the crucial commercial real estate destinations, have lost its edge in this regard due to elevated land prices and complicated tax regime.

Why migrating to India?

According to market sources, since China has got congested with a number of small and medium scale companies,Korean automotive companies have started their search for a much greener option. This has led such firms to head for India. Slacking of the Chinese economy also stands out as one of the primary options for Korean auto companies to migrate to south East Asian nations such as Cambodia and Laos.

Indian economy is growing by leaps and bounds and the stock market is clearly reflecting the double-digit growth barometer. Hence, foreign companies see the perfect investment opportunity in India to bag in. Considered as the world’s greatest democracy, India is the perfect dias for such foreign companies to grow and flourish.

Why Pune is rejected?

According to Korean officials, small and medium scale firms are reluctant to set up their base in Pune because of complicated tax regime. Furthermore, a number of small players in the market had issues acquiring land in Pune, due to its astronomical prices that shows no sign of stabilizing.

Market report confirms that there are nearly 80 Korean manufacturing and automotive firms in Pune and Mumbai, in comparison to Delhi and Chennai which has 160 and 120 such firms. If the rising land prices are stabilized and the tax structure is made more simplified, Pune may experience a slew of Korean companies in the days to come.