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China to set up industrial parks in India
June 30, 2014, 10:19 am

A labourer works at a spinning mill in Xiajin County, east China's Shandong Province, June 12, 2014 [Xinhua]

A labourer works at a spinning mill in Xiajin County, east China’s Shandong Province, June 12, 2014 [Xinhua]

China and India on Monday signed a key agreement to set up Chinese industrial parks in India after the two Commerce Ministers met in Beijing as India looks to rebalance a $40 billion trade deficit with its BRICS partner.

Chinese Commerce Minister Gao Hucheng held talks with his Indian counterpart Nirmala Sitharaman in Beijing aimed at attracting Chinese investments in India.

The Chinese proposal to set up industrial parks in India was discussed during Premier Li Keqiang’s visit to New Delhi in May last year which was in principle accepted by former Indian Prime Minister Manmohan Singh.

“We are happy that more Chinese firms are looking to India as an investment destination. During his visit to India in May 2013, Premier Li Keqiang suggested that we look at the option of establishing a Chinese Industrial Park in India where companies and firms from China could cluster together. We welcome this idea, ” Singh said in Beijing in October last year.

India has a widening trade deficit with China which averaged almost $40 billion a year.

The two sides have also signed a memorandum of agreement on cooperation on Industrial Parks to facilitate more Chinese investment in India.

India is expecting China to set up four industrial parks in different states.

“The larger backdrop with which we are working is that there is definitely a big imbalance with China,” the Indian Commerce Minister said on Monday.

“We are importing lots more than we are exporting. The scope for Chinese to come to India to somewhat redress the imbalance to get their investments in India to set up manufacturing several goods to do some justice to redress the imbalance,” she said.

“What I want to raise with the minister is that there is immense scope for Chinese investments in India both in manufacturing and other sectors, in which Chinese do have an advantage whether it is infrastructure, railways. More such areas can be found where the Chinese investments can be encouraged,” she added.

Chinese Vice President Li Yuanchao (2nd R) and Indian Vice President Mohammad Hamid Ansari (2nd L) unveil the Encyclopedia of India-China Cultural Contacts during the book release ceremony in Beijing, capital of China, June 30, 2014 [Xinhua]

Chinese Vice President Li Yuanchao (2nd R) and Indian Vice President Mohammad Hamid Ansari (2nd L) unveil the Encyclopedia of India-China Cultural Contacts during the book release ceremony in Beijing, capital of China, June 30, 2014 [Xinhua]

The two sides also signed a memorandum of understanding on flood data sharing. India provides funds for maintenance of three hydrological centres on the Chinese side. The data will be provided from May 15 to October 15 each year.

Bilateral trade totalled $65.47 billion last year. The two sides have set a trade target of $100 billion by 2015.

 

 TBP and Agencies