45 banking, investment MoUs likely during Wen's visit
A strong 250-member business delegation accompanying Chinese Prime Minister Wen Jiabao signals China's strong desire to step up not only bilateral trade but also investment into growing Indian economy, officials said today.delhi Updated: Dec 14, 2010 21:03 IST
A strong 250-member business delegation accompanying Chinese Prime Minister Wen Jiabao signals China's strong desire to step up not only bilateral trade but also investment into growing Indian economy, officials said on Tuesday.
While India's concern over a big trade deficit with China is likely to be raised up at the highest level, inflow of foreign direct investment from China would also be sought, they said.
Despite being one of the largest trading partner, FDI from China is insignificant at $ 52 million in last 10-years compared to the total inflows of $ 140 billion.
However of late, the Chinese companies particular those in the infrastructure like power, water and telecom are showing increased interest in investing in India, which has plans to spend over $ 1 trillion up to 2017 on building its infrastructure to sustain economic growth of 9-10%.
As many as 45 banking and investment MoUs between Indian and Chinese banks and firms would be signed during Wen's three-day visit.
Those signing the MoUs include Reliance Power with Shanghai Electric, ICICI Bank with China Development Bank, Essar Group with China Development Bank, IDBI with Bank of China, Adani Power with Shandoung Tiejun Electric, Vedanta Aluminium with China Aluminium International and Lupin Ltd with China Meheco Traditional Medicines.
CEOs and senior functionaries of companies like Shandong Tiansheng Coal Mining Equipment, China International Water and Electric Corp and Taishan Construction Machinery are accompanying the Chinese premier for exploring business opportunities here.
Wen will address a meeting of India Inc tomorrow where the CEOs from companies with interest in China would be present.
Industry body Ficci is organising a separate sectoral meeting of the pharmaceutical companies of the two countries.
While India exports pharmaceuticals worth about $ 10 billion, the dispatches to the neighbouring country are negligible. It is partly due to cumbersome registration process in China and the issue is likely to crop when leaders and ministers from the two countries meet.
The trade imbalance for India to the extent of $ 19 billion in 2009-10 and $ 16 billion in the first 10-months of the current fiscal arises out of the composition of the country's exports basket.
As much as 70% of India's exports comprises raw material like iron ore, cotton and chemicals.
"We need to put emphasis on exports of value added items," Federation of Indian Export Organisations said.