India is getting its act together to persuade China to start delivering on its promise of investing $20 billion into the country made during Chinese Premier Xi Jinping’s visit last month.
The Commerce Ministry has called a meeting of various ministries and departments, including IT, industry, chemicals & pharmaceuticals, power, new and renewable energy, and roads and railways to draw plans on how investments can be facilitated into these sectors from China.
The Indian Embassy in China has also been asked to organise meetings with senior officials including the Chinese Trade Minister to discuss their road-map for investing in India, a Government official told
“Big announcements made during important visits often slide off the priority list once dignitaries go back home. But with China we do not want that to happen. We will therefore push from all sides to ensure that what was promised is delivered,” the official said.
The Commerce Ministry is preparing working papers in various areas identified by China in its five-year plan for bilateral cooperation with India such as railways, roads, pharmaceuticals, IT, nuclear and solar energy.
To persuade private companies in China to invest in India, the Department of Industrial Policy & Promotion (DIPP) will coordinate with various industry associations there to identify the obstacles they face while investing in India and sort out their problems.
“A number of Chinese companies, especially in the telecom and construction sectors like Huawei and Longnjan Road, are not happy with their experience in India. We have to remove their apprehensions,” the official said.
During Xi’s visit China agreed to invest in two industrial parks, one each in Maharashtra and Gujarat. In Railways, it agreed to invest in increasing sturdiness of the rail network to allow fast trains. It also promised to invest $20 billion in India and work towards bridging the trade gap.
With India’s trade deficit with China widening to $36 billion in 2013-14 – which is more than a fourth of the country’s total trade deficit – New Delhi had pressed hard for measures to narrow the gap.