China to invest $20 billion in India despite territorial dispute 

The leader of the People’s Republic of China Xi Jinping arrived on a visit to India, where he had a meeting with Prime Minister Narendra Modi.

During the talks, Modi expressed concerns that the trade imbalance between China and India was increasing. The Indian leader asked for assistance in providing access to the Chinese market for Indian companies.

China, in turn, plans to invest tens of billions of dollars into the economy of India, Interfax reports.
In particular, China plans to assist India in the modernization of the railway system in the country, as well as in the construction of industrial zones in the states of Gujarat and Maharashtra.

As for economic plans of China, Corriere della Sera wrote that Xi Jinping, prior to his visit to India, praised the new relationships between the “Chinese dragon” and “Indian elephant”.

The Chinese president stressed out that between China, “the factory of the world” and India, “the office of the planet,” one needs to create most competitive production base and a more attractive market for consumers around the world.

It is worth noting that over the past 14 years, Chinese investments in India amounted to only $700 million. In turn, India is seeking access to the Chinese market for information services, technology and pharmaceuticals.

China is the first trading partner for India, although for Beijing, India comes 12th. The trade between the two countries is estimated at nearly $70 billion, but the deficit of India makes up 30 billion. China’s GDP is more than six times the size of Indian GDP.

China claims for about 90,000 square kilometers of land in India’s northeastern state of Arunachal Pradesh. India says that China occupies 38,000 square kilometers on Aksai Chin plateau.

 

Source: pravda- China to invest $20 billion in India despite territorial dispute

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