Two Chinese provinces ready to invest big in Karnataka

Karnataka is all set to leverage the Modi government’s bonhomie with China and attract mega Chinese investments as both Yunnan and Sichuan provinces are exploring opportunities in the state. The quantum of investments is expected to range from $2 billion to $5 billion.

Interacting with Deccan Herald,  Karnataka commerce and industries additional chief secretary K Ratna Prabha said the government is ready to give all basic infrastructure facilities within affordable cost for companies from China.

“Trade delegations from Yunnan and Sichuan provinces have already visited the state and are satisfied with the infrastructure. The Karnataka government will allot 100 acres each to these provinces at Vasant Narasapur near Tumakuru. The government is ready to offer facilities to build Chinese townships,” said Prabha.

“Chinese provincial government officials and business community have evinced keen interest in investing in IT, chemicals, speed trains, smart cities, agriculture, food processing and infrastructure projects in the state,” said the additional chief secretary.

Federation of Karnataka Chamber of Commerce and Industries (FKCCI) president  S Sampathraman said a business delegation from the state visited Kunming, the capital of Yunnan, during September 2014 and discussed investment proposals. “Yunnan Sunpa Image Tel Tech Company, a Yunnan-based telemedicine company, has already expressed its investment plans in Karnataka and the agreement will be signed soon.  During our interaction with the Yunnan council deputy chairman, the political head of the province, and other officials, other companies also evinced interest in investing in the state,” said Sampathraman.

Two days back, Chengdu (capital city of Sichuan) municipal government deputy director-general Feng Qing visited Bengaluru to explore investment opportunities in smart-cities, industrial corridors, and infrastructure development (roads, seaports, airports etc).

Besides bringing a trade delegation comprising members drawn from 20 companies, the Chengdu delegation also visited industrial belts in and around Bengaluru and a few IT companies as well.

During his recent China visit Prime Minister Modi signed deals worth more than $22 billion, besides four agreements on sister-state and sister-city relations between Indian and Chinese states and cities.

“During our last visit to Sichuan, Karnataka wanted to sign the agreement. The provincial authorities were keen to sign the sister-state agreement during the PM’s visit to China and did it accordingly. Karnataka can really take advantage of this new agreement,” said Sampathraman.

China is India’s biggest trading partner with two-way commerce totaling $71 billion in 2014. But India’s trade deficit with China has soared from just $1 billion in 2001-02 to more than $38 billion last year.