Indian and Chinese business delegates signed deals worth $3.43 billion in New Delhi on Wednesday.
An agreement worth $2.6 billion was signed between IndiGo Airlines and Industrial and Commercial Bank of China (ICBC) for leasing and financing 30 aircraft.
This pact was under the aegis of the Federation of Indian Chambers of Commerce and Industry. IndiGo Airlines president Aditya Ghosh and Jiang Bo, managing director of ICBC Leasing, inked a memorandum of understanding (MoU) in this regard.
Reliance Communications’ President C S Rao signed two MoUs, worth about $150 million each, with Chinese telecommunications firms ZTE and Huawei Technologies for equipment and expansion of Reliance’s 2G and 3G networks.
“These agreements are an effort by our companies to address the issue of trade deficit. Besides, with our expertise in infrastructure development, China wants to cooperate with India in developing its infrastructure,” said Wang Hejun, economic counsellor, Chinese embassy.
China will also develop and upgrade the 640-km railway line between Bangalore and Mysore (through Chennai). In the financial services sector, state-owned Bank of China is expected to open a bank branch in Mumbai. China also plans to offer credit lines worth billions of dollars, through EXIM Bank of India.
These investment plans were firmed up during commerce & industry minister Nirmala Sitharaman’s recent visit to Beijing in June.
During her visit, she had held extensive discussions with her Chinese counterpart, Gao Hucheng, to address the soaring trade deficit between the two countries.
For 2013-14, the trade deficit between India and China was $36.2 billion, in China's favour.
While India exported goods worth $14.8 billion, its imports stood at $51 billion. India and China have also set up a services trade promotion group for greater market access and job opportunities for professionals in both countries, through a relaxed visa regime.
On Wednesday, several other MoUs were signed in sectors such as wind energy, seafood, chemicals, cotton and pharmaceuticals.
The two leaders oversaw signing of MoUs between China and Gujarat. Under the first, signed between the Industrial Extension Bureau (iNDEXTb), the nodal agency for investment promotion in Gujarat and China Development Bank (CBD), iNDEXTb will assist Chinese investors in obtaining the required clearances and creating infrastructure facilities in the state's industrial parks.
The Gujarat government expects this MoU to help promote domestic industry, as local companies will get the opportunity to become suppliers to the Chinese manufacturing units.
It will also encourage local firms to adopt new technology and reduce imports. CDB and iNDEXTb have also agreed to facilitate interactions between manufacturing companies and industry and trade associations of China and Gujarat in investment promotion activities.
Another MoU was for establishing 'SisterProvince' relations between China's Guangdong province and Gujarat. Under this, cooperation is envisaged in economy, trade, environmental protection, public policy education, health, science & technology and tourism & culture.
The third MoU, signed between the Chinese city of Guangzhou and Ahmedabad, is for closer cooperation between the local authorities of the two cities. This will include knowledge sharing through delegation visits, institutional meetings and sharing of experiences in the areas of mutual interest.
Among the top industrialists who attended the signing of these MoUs were L&T Chairman A Naik, Suzlon Chairman & Managing Director (CMD) Tulsi Tanti, Adani Group Chairman Gautam Adani, Cadila Healthcare CMD Pankaj Patel, Cadila Pharma CMD Rajiv Modi, Rasna Ltd CMD Piruz Khambhatta, and the Torrent group's Sudhir and Samir Mehta. Among academicians were Ashish Nanda (IIM Ahmedabad) and Sudhir Jain (IIT Gandhinagar).
The Gujarat government had earlier said Chinese companies had shown interest in investing in Gujarat, especially in the electronic and electrical sector.
The Chinese President's visit to the state, along with a large business delegation, was seen as the first step towards enhancing economic and cultural ties with the state.
From China, With Love
IndiGo Airlines signs $2.6-billion leasing and financing MoU with Industrial and Commercial Bank of China
China in talks with Air India to sign a deal worth $2 billion to lease & finance aircraft
China to develop existing rail line between Bangalore and Mysore
Bank of China to open branch in Mumbai
EXIM Bank of China to offer credit line of $1 billion soon
India and China announce setting up of services trade promotion group for professionals
Image: Prime Minister Narendra Modi presents a bouquet to China's President Xi Jinping in Ahmedabad. Photograph: Reuters
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