CHINESE enterprises are encouraged to seek opportunities for investment in India as both the Indian and Chinese governments are striving to resolve a trade imbalance between the two countries, an investment promotion briefing said late last week.
There has been a phenomenal expansion in bilateral trade between India and China since their relations saw a rapid transformation over recent years under the India-China Strategic and Cooperative Partnership for Peace and Prosperity, according to the briefing, which was released by the Consulate General of India in Guangzhou. The total bilateral trade volume reached US$61.74 billion in 2010, an increase of 42 percent over 2009, it said.
However, India recorded widening trade deficits with China in the past year. In 2010, China s exports to India increased by 38 percent to US$40.88 billion, while India s exports to China amounted to US$20.86 billion, the briefing said. India s trade deficit has been growing from US$11.18 billion in 2008 to US$15.87 billion in 2009 and to US$20.02 billion in 2010.
Trade between India and Guangdong Province in 2010 amounted to US$9.62 billion, of which, exports from Guangdong to India reached US$7.85 billion while exports from India to Guangdong were US$1.77 billion, with a trade deficit of US$6.08 billion.
To resolve the widening gap, a target of bilateral trade of US$100 billion by 2015 was set during Chinese Premier Wen Jiabao s visit to India in December 2010.
The two sides agreed to expand cooperation in infrastructure, environmental protection, information technology, telecommunications, investment and finance on a priority basis.
India has welcomed Chinese enterprises to invest in India s infrastructural development such as in roads, railways and in the manufacturing sector, the briefing said.
The cumulative value of Chinese contractual investment projects until November 2010 was US$37.96 billion. However, Chinese cumulative direct investment in India up to November 2010 amounted to only US$148.1 million. India would welcome investment by Chinese enterprises in the following sectors: roads and railways, manufacturing, electrical machinery and equipment, chemicals, pharmaceuticals, power and telecom, the briefing said.
India s economy has emerged from the slowdown caused by the global financial crisis of 2007-09. It grew 8 percent during the 2009-2010 financial year and is expected to grow 8.6 percent for 2010-2011 and 9 percent for 2011-2012, the briefing said.
(SD News)
