18 September, 2014

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Xi’s visit to India- The developments so far….


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Image Source: The Economic Times

Ramping up trade and investment opportunities is a major agenda of Xi’s visit to India. Xi Jinping Arrives With $100 Billion Investment Commitments Over Five Years.

Following are some of the key highlights…

Ø MoU was signed between the China Development Bank (CDB) and the Industrial Extension Bureau — popular as iNDEXTb (the Gujarat government unit in charge of accelerating industrial development in the state)…

o It has a three years validity

o According to it, the CDB will guide and introduce Chinese enterprises to set up industrial parks in Gujarat.

o CDB will also provide financial support for the industrial parks, the first of which will come up in Vadodara.

o However, the state government officials were silent on the amount of investments the MoU will bring to Gujarat

Ø Industrial parks…

o China signed a landmark agreement with the government of Gujarat, which is expected to facilitate investments worth thousands of crores in the form of industrial parks.

o The industries in the industrial parks will be in electrical, electronics, plastic processing and other sectors.

Ø Two “facilitation agreements” were also signed…

o The agreements were for establishing sister province-state relations between Guangdong and Gujarat and between Guangzhou City (capital of Guangdong) and Ahmedabad.

Ø Other points for attention…

o At present, Gujarat already has a significant presence of Chinese with close to Rs 9,000 crore of promised investments, most of which came when Modi was the chief minister, sources in the state government said.

o Among the biggest Chinese investments promised is that of Chinese firm TBEA Energy (India) Pvt Ltd, which is developing a Green Energy Park at Karjan near Vadodara with an investment of about Rs 2,500 crore.

o Also, China Steel Corporation is setting up an Electrical Steel Plant at Dahej GIDC Estate at a cost of Rs 6,000 crore.

o Figures from the Reserve Bank of India show that between April 2000 and February 2014, China Steel Corporation India Pvt Ltd parked Rs 441 crore for manufacturing iron and steel in the state.

Data source: The Indian Express

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