The Hindu Business Line : `Govt not against Chinese investment'

Setting a trade target of $50 billion by 2010 with China, the Minister of State for Industry, Dr Ashwani Kumar, said that India would not discriminate against investments from China, except in areas where closer look is required for security reasons.

While speaking at a conference on `India-China: Building Synergies' organised by the Confederation of Indian Industry on Monday, he said, "We have to deepen the engagement with China to increase bilateral trade to $50 billion by 2010."

China has a policy of mutual respect and conciliation with regard to India, he said, and India is reciprocating.

"China and India will work together but we have to recognise that there will be competition as well for markets, technology, raw materials and energy."

Indian companies need to brace themselves for competition from China in addition to the challenges they are already facing from the Western multinationals, the Minister said.

"We hope to attract foreign investment from China into India."

For this, the Government has decided to develop investment regions, as distinct from special economic zones.

"These will have an area of 200-250 sq. km and have world-class infrastructure. They will be propellers for investment into India.

"We have decided on these to overcome the lack of resources for developing infrastructure," he said.

The Minister also released an analysis on the trade between the two countries which points out that if the current cumulative aggregative growth rate of over 40 per cent continues in the Sino-Indian trade, the bilateral trade could be three times the current target of $30 billion trade by 2010.

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