To invest $20 billion; allows greater access to Indian firms
Chinese President Xi Jinping shakes hands with Infosys founder N.R. Narayana Murthy during a banquet at Rashtrapati Bhavan in New Delhi on Thursday.
(Photo: PTI)
New Delhi: China on Thursday committed to invest $20 billion in India over five years in an attempt to bridge the trade imbalance between the two nations. This figure, however, is far less than the estimates of $100 billion projected by Chinese officials earlier and less than $35 billion investment assured by Japan during Prime Minister Narendra Modi visit. China also assured to provide greater market access to Indian products in farm, pharma and gems and jewellery sectors.
“I am pleased with the agreements on two Chinese industrial parks in India and a commitment to realise about $20 billion of Chinese investments in the next five years,” said Mr Modi after India and China signed ‘Five-year Trade and Economic Development Plan’ in presence of visiting Chinese President Xi Jinping. Mr Modi said that both nations agreed that the economic relations do not do justice to “our potential”. “I expressed concern at the slowdown in trade and the worsening trade imbalance. I sought his partnership in improving market access and investment opportunities for Indian companies in China,” said Mr Modi.
He said that the Chinese President assured his commitment to take concrete steps to address India’s concern. Mr Modi said that he has invited Chinese investment in India’s infrastructure and manufacturing sectors. “We have also agreed on specific steps to enhance cooperation in upgrading India’s railways sector,” he said.
While trade between India and China has been increasing in recent years, it has been mostly in favour of the communist nation which is exporting from big power machinery to flooding Indian markets with mobile phones. This has raised concerns in India. Also Chinese investment in India has been minuscule, lower even than what it has invested in smaller nations. To bring down the trade deficit, China was asked to invest in the country to produce its products domestically.
( Source : dc correspondent )
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