China to invest $20 bn in India in next five years

China on Thursday committed to invest $20 billion in India over the next five years even as Prime Minister Narendra Modi conveyed to visiting Chinese President Xi Jinping New Delhi’s concerns over growing imbalance in trade between the two countries.

The meeting between Modi and Xi in New Delhi was followed by signing of 12 documents, including a five-year Trade and Economic Development Plan, which laid down a medium term roadmap for promoting “balanced and sustainable” development of economic and trade relations between China and India “on the principle of equality and mutual benefit”.
China will also set up two industrial parks in Maharashtra and Gujarat.

“We agreed that our economic relations do not do justice to our potential. I expressed concern at the slowdown in trade and the worsening trade imbalance. I sought his partnership in improving market access and investment opportunities for Indian companies in China,” Modi told journalists after his meeting with Xi. 

Xi said that he had assured Modi of China’s “commitment to take concrete steps to address” the concerns of India. Bilateral trade between both countries was worth $66.4 billion last year. The balance of the trade was in favour of China and the gap stood at $35 billion.
India has since long been conveying to China its concerns over burgeoning imbalance in bilateral trade.

China and India also agreed to speed up phytosanitary negotiations on agro-products for two-way trade, to ensure stronger links between Chinese enterprises and Indian Information Technology companies as well as to increase services trade in tourism, films, healthcare, IT and logistics.