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On September 18th, Indian Prime Minister Modi invited Chinese investors to invest in India's infrastructure and manufacturing. He also revealed that India and China have signed an agreement on the establishment of two Chinese industrial parks in India, and China will invest 20 billion US dollars in India in the next five years.
"This opens a new chapter in our economic relations," Modi said. He also revealed that the two countries agreed to take concrete measures to strengthen cooperation in upgrading the Indian railway.
In order to welcome Xi Jinping's visit to India, Modi published an article in the Indian newspaper, proposing that the two countries should promote the development of India-China relations with the spirit of "from inches to miles." The first two letters of the names of India and China are spelled together in the first two letters, the word "inch"; Miles means "Millennium of Exceptional Synergy."
Modi suggested that India and China are "two bodies, one kind of spirit", and this sentence is widely circulated in India. He said that India and China share the same development ambitions and can fully strengthen cooperation.
Xi Jinping also published a signed article entitled "Working Together to Create a Prosperous and Rejuvenating Asian Century" in the Indian media "The Hindus" and "Awakening Daily".
Modi said that President Xi Jinping's visit to India is a historic opportunity for Sino-Indian relations. "We can start a new era of relations between the two countries," he said.
China and India signed 12 cooperation agreements
On September 18th, China and India signed 12 cooperation documents on Thursday, involving China-India five-year economic and trade development plan, railway cooperation, peaceful use of outer space, drug management and cultural exchanges. Following the day when Guangzhou and Ahmedabad, the largest city in Gujarat, became sisters, Shanghai and Mumbai signed an agreement to become a sister city on the 18th.
China will help India upgrade its aging railway system and invest in two industrial parks in Gujarat and Maharashtra. China also promised to open more market access to Indian products. India hopes that China can open more markets for India's IT services and pharmaceutical industries.
Amitava Ghosh, vice president of India's Tech Mahindra, said in an interview with the 21st Century Business Herald that India has a good service industry and technology. China has expertise in manufacturing and the two sides can cooperate very well.
In the past 14 years, China’s direct investment in India was about US$400 million, far behind the scale of Japan’s investment in India during the same period that Modi had just visited.
The Modi government took the stage to prioritize improving infrastructure in India, which also provided new opportunities for Chinese investors. India is pushing for the "Diamond Quadrilateral" high-speed rail project, hoping to connect the four major cities of Mumbai, New Delhi, Kolkata and Cochin.
Xi Jinping’s signed article in an Indian newspaper mentioned that China has rich experience in infrastructure construction and manufacturing and is willing to play a role in India’s development in these areas. India's information, pharmaceutical and other industries are developed, and Indian companies are welcome to explore the market in China and seek business opportunities.
Xi Jinping said that the strong combination of "world factory" and "world office" will form the most competitive production base and the most attractive consumer market.
Improve trade imbalances
According to the 21st Century Business Herald reporter, on the day of Xi Jinping’s arrival in India, at the China-India Business Conference held in New Delhi, Chinese and Indian companies signed 24 memorandums of understanding worth $3.43 billion on aircraft leasing, telecommunications, chemistry, Wind energy, pharmaceutical and other fields.
Among them, Indian low-cost airline IndiGo signed a $2.6 billion memorandum of understanding with Industrial and Commercial Bank of China. ICBC will provide financing to the Indian company to lease more than 30 aircraft.
Reliance Communications, India's second-largest telecom operator, signed a $150 million memorandum of understanding with ZTE and Huawei to purchase equipment and expand Reliance's 2G and 3G networks.
In addition, China will participate in the upgrade of the 640-kilometer railway between Bangalore and Mysore. In the financial sector, Bank of China plans to open a branch in Mumbai. According to Indian media reports, the Export-Import Bank of China also plans to provide India with a $1 billion credit line.
China is India's largest trading partner and India is China's largest trading partner in South Asia. In 2013, bilateral trade between China and India exceeded US$65 billion.
India hopes to improve the trade deficit with China. According to data from India, India’s exports to China last year were US$14.5 billion, imports were US$513.7, and its trade deficit with China exceeded US$36 billion. In his speech, Modi revealed that he mentioned the trade imbalance in his talks with Xi Jinping and hoped that China could open more markets to Indian companies. At the beginning of September, Indian Minister of Commerce and Industry Hitarahman said at the China-India Economic and Trade Joint Group meeting that he hoped that China will continue to take active measures to expand imports from India, especially the import of India's superior products.
China and India sign a five-year economic and trade plan: a strong alliance of world factories and offices
Summary After bidding farewell to Gujarat, India, Chinese President Xi Jinping traveled to New Delhi to continue his three-day trip to India. On September 18th, Indian Prime Minister Modi invited Chinese investors to invest in India's infrastructure and manufacturing. He also revealed that India and...
After bidding farewell to Gujarat, India, Chinese President Xi Jinping traveled to New Delhi to continue his three-day trip to India.