Chinese companies plan big investment across sectors in India

GUANGZHOU: China is poised to make huge investments in the coming months across sectors including the Narendra Modi Government's flagship projects from smart cities to Digital India as President Pranab Mukherjee nudged the Chinese leadership and business honchos to take advantage of prevailing growth rate in South Asia's biggest Country. It has been reliably learnt that big Chinese business groups including Shanghai Automative company, Chint group (that deals in renewable energy proposes to invest $ 1.5 bn in India), Sopo Group, Dingshen, Shanghai Electric company plans to make substantial investments in India. Besides, CFLD desisres to set up 10 industrial parks in India and has applied for loans from BRICS Bank.

With the glut in Chinese economy the groups are looking at India as a prospective market. States with better environment and infrastructure -- Gujarat, Andhra Pradesh, Tamil Nadu, Maharashtra -- are on the radar of the Chinese investors. Sources explained that investments from China are key to reduce growing trade gap between the two neighbours.

Mukherjee asked the Chinese investors to take opportunity of the pro-investment policies of the Modi Govt. and invest in sectors like Smart City, Skills Development, Digital India and manufacturing sectors. Expanding economic partnership was the key theme of Mukherjee's deliberations here as he landed in Beijing for the political leg of the dialogue.

Earlier delivering address at the India-China Business Forum at Guangzhou the President said, "Although the trade balance continues to be in favour of China, we look forward to expanding our commerce to make it more equitable. India would like to see a greater greater market for our products in China -particularly in sectors where we have natural complementarities - as in the areas of drugs and pharmaceuticals, IT and IT - related services and agro-products. It is a matter of satisfaction that there is emerging focus on two way investment flows."

India-China bilateral trade which was as low as $ 2.92 billion in 2000 reached $ 41.85 billion in 2008, making China India's largest trading partner in goods. By 2015, Sino-Indian bilateral trade stood at $ 70.4 billion. India's exports to China touched $ 8.86 billion whereas China's exports were $ 61.54 billion. In 2015 trade deficit stood at US$ 52.67 billion.

Source: - Dailyshippingtimes.com