Chinese firms may push in $1bn investments in K'taka

Chinese firms may push in $1bn investments in K'taka

Chinese firms may push in $1bn investments in K'taka

 Yunnan Sunpa Image Tel Tech Company Ltd, a Yunnan-based telemedicine company, may be an unknown entity even inside China. But the company is gearing up to play a major role in Karnataka’s investment landscape by anchoring Chinese-led investments of around $1 billion in the state. 

Yunnan Sunpa will invest between Rs 300-500 crore in the telemedicine segment, according to Federation of Karnataka Chambers of Commerce and Industry (FKCCI) sources.

FKCCI, which had last month led a business delegation to Kunming, the capital of south-west Yunnan province of the People's Republic of China, said the investment proposals came up after meeting the heads of state.

“During our interaction with the Yunnan Council deputy chairman, the political head of the province and other officials, these investment proposals came up. We have to allot around 100 acres somewhere near Bangalore for the project,” FKCCI officials said.

Sources familiar with the development said the province will spearhead its investments via companies working in verticals like food processing, electronics, fertilizer and tele-medicine.

The delegation also visited a few research and development centres in Kunming along with other manufacturing centres.

Besides Bangalore, the state government is exploring  possibilities of allocating land for new investors in Tumkur, Gauribidanur, Kolar, Mulgabal, among other locations. Yunnan province will soon send a trade delegation to Karnataka for holding further discussions with the state government on this, sources said.

Karnataka is already attracting large investments from Japan, Sweden, United States and the United Kingdom.

Trade deficit

The global business community has seen the cosmopolitan atmosphere, well developed IT infrastructure and cutting-edge research and development establishments as key attractions of Bangalore.

As per data released by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), the trade deficit between the India and China was an alarming $36.22 billion in 2013-14.

Besides having a 490 km geographic proximity, Yunnan has historical connections with India via the Southern Silk Road, the Tea Horse Caravan Road, Stilwell Road and the Hump Route. The province is blessed with 142 types of minerals and the largest export base for fresh cut flowers in Asia.

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