New Delhi, Oct 23 (KNN) India and China have agreed to facilitate setting up of a Chinese industrial park in India for promoting mutual investment.
“Premier Li was receptive to my concern about the unsustainable trade imbalance between our two countries and we have agreed to explore avenues to bridge this gap. We are taking forward the suggestion made by Premier Li in New Delhi for a Chinese industrial park to act as a magnet for Chinese investment in India,” said Prime Minister Manmohan Singh in a statement.
“We are also exploring the feasibility of the BCIM Economic Corridor connecting our two countries via the southern Silk Road,” he added.
The Prime Minister is currently on a visit to China.
China has been looking to revive the ancient ‘Southern Silk Road’ with South Asia through the economic corridor linking Bangladesh, China, India and Myanmar (BCIM), a topic which figured prominently during the Chinese Premier Li Keqiang's India visit a few months ago.
Significantly, India runs a huge trade deficit of about USD 40 million against China and it has been suggested that FDI from China can be a solution.
The investment by China will help the manufacturing sector in India as several SMEs can join them as vendors.
After delegation level talks with the Chinese Premier, PM said that the two sides had agreed that the prosperity and progress of 2.5 billion Indian and Chinese people would be a major factor of Asian resurgence and global prosperity and stability.
The two leaders also agreed to partner in pursuing socio-economic progress in a rapidly changing and uncertain global environment, with peace and tranquillity on borders being the foundation of the relationship.
It was also agreed that as large neighbours following independent foreign policies, the relationships pursued by India and China with other countries must not become a source of concern for each other.
Agreements and MOUs signed today by the two leaders had to do with defence cooperation, road transport sector, trans-border rivers, power equipment, cultural exchanges, Nalanda University and sister-city linkages.