China has pledged on Thursday to invest $20 billion in India in the next five years besides allowing greater market access to Indian companies in sectors like pharmaceutical and farm-products.
India and China also signed an audio-visual co-production pact, part of diplomatic deals sealed during Chinese President Xi Jinping’s visit to India.
The two countries also agreed to work within an institutional framework in the light of the agreement. The two neighbours have also agreed on a joint working group to promote facilitation in the film sector. It would meet on the sidelines of International Film Festival of India (IFFI) 2014 at Goa.
The decision was taken at a meeting between I&B minister Prakash Javadekar and Cai Fuchao, China's Minister for State Administration of Press, Publication, Radio, Film and Television.
During the discussions, Javadekar emphasized the steps needed to be taken to include television as a component of the co-production agreement. For this purpose, a separate proposal could be moved to facilitate the matter, the statement said.
The proposed meeting would involve the stakeholders from both the countries to achieve cooperation in film sector with specific proposals and projects. More Chinese investments as well as greater market access are seen as ways to bridge the growing trade deficit. Trade between the countries reached 70 billion USD in 2013. But India's trade deficit with China is 40 billion USD. A total of 12 pacts were signed between the two sides after the meeting between Prime Minister Narendra Modi and visiting Chinese president Xi Jinging.
“ I am pleased with the agreements on two Chinese industrial parks in India and a commitment to realize about 20 billion USD of Chinese investment in the next five years. This opens a new chapter in our economic ties,” Modi said in his joint press interaction with Jingping. The two sides have signed two pacts on cooperation on Railways.
This include cooperation in speed-raising, studying feasibility of cooperation in high-speed railways, heavy-haul transportation training of Indian Railway personnel, redevelopment of railway stations, and setting up of a Railway University in India.
While one industrial park for power equipment is in Gujarat, another for automotive parts will come up in Maharashtra . Some of the deals signed during the visit included Export Import Bank of China inking an agreement with State Bank of India, to extend a.1.8 billion USD line of credit. A similar agreement was signed with ICICI Bank for 1 billion USD. India and China have also decided to look at working in the area of civil nuclear cooperation. They will also advance their efforts to build the BCIM (Bangladesh, China, India and Myanmar) economic corridor.