Controversial Huawei proposes $2 billion India market push

Huawei Technologies wants to conquer the Indian market.

The Chinese telecoms company is reportedly looking to invest $2 billion in the country within the next five years.

Huawei vice president Yao Weimin told the papers that India is the company’s  largest overseas market and it already has contracts with five India-based carriers – Reliance Communication, Tata Communications, Bharti Airtel, Idea Cellular and Aircel.  

Its current operation in India employs 6,000 staff, 90 percent of them locals and 2,000 responsible for R&D.

Last month a Bloomberg report suggested India was blocking Huawei from selling equipment to domestic phone carriers, citing espionage concerns and network security issues.

Similarly, in the US Huawai is not exactly flavour of the year – with lawmakers concerned that it could be involved in dodgy dealings. In October lawmakers tried to block a deal between Sprint and Huawei, claiming that close ties with the Chinese military could spell a security breach.

There’s also concern over Chinese banks having close ties with Huawei, with Export-Import Bank of China giving it a $600 million credit line allegedly used to offer cheap financing to some customers.

Back in India, Huawei says it will keep trying to get both feet in the door. It wants to invest $2 billion for an R&D centre, which will provide 3,000 jobs to people in Bangalore. It will also create a production base for networking and communication equipment in Chennai, and training centres for 3G engineers in other main cities.