Chinese funds of $20 billion start flowing to India

India wants to bring trade balance

Chinese funds of $20 billion start flowing to India

In a move that would increase domestic demand weighed down by demonetisation, Chinese investment of $20 billion (about Rs 1.20 lakh crore) promised during President Xi Jinping’s 2014 visit, has started flowing in, the Finance Ministry confirmed on Monday.

It said, the focus would now be on achieving trade balance which is heavily tilted in China’s favour. “Chinese President during his visit to India in 2104, announced $20 billion investment in India. It has started flowing now,” Economic Affairs Secretary Shaktikant Das said.

 He said India was now looking for more inflow of investment from China.
“Our embassy is working closely with China for this,” he said in a series of tweets.
“We are very strong in IT software and pharma. We would like to export these to China along with fruits, fish and vegetables. For sustainable trade relationship, balance of trade is required between India and China,” Das said.

“Our commerce and trade department is working with China to increase our exports there so that there is parity in trade with China,” he said.

According to official figures, trade between India and China in 2016 was $71 billion, but India had a wide trade deficit of $46 billion vis-a-vis China.

During President Xi’ s visit in September 2014, China had committed $20 billion investment in the next five years. It had also promised to reduce the widening trade imbalance.

The two countries also signed a $6.8 billion deal to set up China-dedicated industrial parks near Pune and in Gujarat. These parks would act as manufacturing and export hubs. These parks are expected to be spread over 1,250 acres. In the past 10 years China has invested $400 million in India.

Bounty from China

Chinese President during his visit to India in 2014, announced $20 billion investment in India

Official figures states trade between India and China in 2016 was $71 b, but India had a trade deficit of $46 b

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