Chinas Huge Investment in India Can Help Make In India Initiative
Published By : 05 May 2015 | Published By : QYRESEARCH
The Indian access to the Chinese market is vital for correcting the persistent trade imbalance, which is created between the two countries; a very huge Chinese investment in India will be helping the Prime Minister Modi, in realizing his commitment for Make in India.
India-China trade has summed up to US$65.50 billion in the last year; however the trade surplus was strongly in China’s favor. China’s investment in India is very little if compared with its other investments in different countries across the globe. Nevertheless, during the Chinese President’s Xi Jinping visit to India in the last September, several Chinese companies had given a commitment of investing US$20 billion in infrastructure and manufacturing sectors of India.
A government official informed that the progress on this investment commitment will be reviewed during the Prime Minister’s next visit. The Secretary General of Ficci, Didar Singh, who had visited China after Xi Jinping’s India visit, stated that the Chinese were very much serious regarding the investment in India and they had also started with their work.
He further added that the India - China economic engagement requires shifting their focus from the trade relationships to investments, as only the increased investments can take care of the existing trade-related imbalance between the two nations.
Officials further stated that several efforts will be made to convince the Chinese manufacturers to set up their production base in India, which will promote the ‘Make in India’ initiative taken by the Prime Minister. The one way to take care of India’s trade imbalance with China can be done by increasing India’s services export to China. Pharmaceuticals, agriculture, and textiles are some of the areas which have started with its development in the Chinese market.