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India wants Chinese Foreign Direct Investment
February 28, 2013, 4:13 pm


India’s ambassador to China (right), shakes hands with Zhang Xiaqiang at the forum in Beijing [Image courtesy of Embassy of India]

India is looking to gain Foreign Direct Investment (FDI) from China to increase the share of manufacturing in the economy from 16 per cent to 25 per cent by 2022.

Dr. S Jaishankar, India’s ambassador to China said Chinese companies should take advantage of India’s goal to increase manufacturing and stressed that the country would welcome Chinese investment.

The ambassador was speaking at a India-China Investment Forum in Beijing on Wednesday.

The India-China Strategic Economic Development (SED) mechanism is a good platform to create a more open investment environment, Zhang Xiaoqiang, vice-chairman of the National Development and Reforms Commission of China said in his address.

The National Development and Reforms Commission of China, (NDRC) is the nodal body of Chinese investment.

Around 270 representatives from Chinese companies were present at the forum including representatives from Huawei.

“Investments could also help address the trade imbalance created by market access challenges,” Jaishankar said.

Bilateral trade in 2012 reached $66.47 billion, down from $73.9 billion in 2011 when China became India’s biggest trade partner.

In 2010, India and China set a target to reach $100 billion in bilateral trade by 2015.

Jaishankar assured China that India would address all procedural obstacles that could damage bilateral trade.

In his address, Zhang observed the forum was significant under the 2nd Strategic Economic Dialogue (SED) mechanism for both sides to improve mutual understanding, extend common views and enhance cooperation.

The vice-chairman said great progress had been achieved in trade in recent years, yet mutual investment is still low and he urged both sides to objectively solve challenges and difficulties that are faced by Chinese companies investing in India.

“On the other hand, both the governments should intensify communications, coordination and promotion through relevant platforms such as the India-China Strategic Economic Dialogue (SED) mechanism so as to create a more open and more convenient investment environment,” Zhang was quoted in a press statement by the Indian Embassy as having said.

Investment opportunities for Chinese companies, financial support by China Development Bank (CDB), legal and regulatory framework for investments into India were the major motifs of presentations during the forum.

Five Chinese companies Huawei, Zhejiang Feida Environmental Science & Technology Co, Ltd, China Power Construction Corporation of China, CSR and Shanghai Electric also presented their view of the opportunities of investing into India.

India launched a sector-wise investment guide specifically targeted towards Chinese companies at the forum.

“The Complete Guide to Investing in India” is in Chinese and has information on crucial sectors like infrastructure, automobiles, hospitality, power and energy among others.

Relevant rules and regulations applying to each sector have been given in the book.

Source: Agencies