30.6.14

India & China


New Delhi and Beijing on Monday signed three agreements, including the one for establishing Chinese industrial parks in India. “We expect Chinese manufacturers to establish production units in India to partially redress the existing trade imbalance,“ Union minister of state for commerce Nirmala Sitharaman said.
The Cabinet gave-in principle approval for the industrial parks last week. The agreement regarding this does not cite number of industrial parks that would come up. But Indian officials expect Chinese companies to establish four parks. They said there was no target for Chinese investments but they expected enhanced manufacturing to help reduce the adverse trade deficit. India suffered a trade deficit of $35 billion in the bilateral trade that stood at $65.47 billion last year.
Sources said Sitaraman told Chinese officials their manufactures could produce goods meant for China as well as third countries in India to eventually support Indian exports. “The proposed parks will host a wide range of industries and contribute to the new government's objective of employment-oriented growth,'' she said. She requested her Chinese counterpart, Gao Hucheng, to provide greater market access to Indian companies.

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