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China to invest $100 billion in India over 5 years

temujin

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China to invest $100 billion in India over 5 years

MUMBAI: Chinese president Xi Jinping will bring along with him $100 billion or Rs 6 lakh crore of investment commitments over five years during his upcoming India visit next week. This is nearly thrice the $35 billion secured by Prime Minister Narendra Modi during his Japan trip.

Jinping will land in Modi's home state Gujarat on September 17 — the Prime Minister's birthday — following his visit of Tajikistan, Maldives and Sri Lanka.

Confirming this, Liu Youfa, China's consul-general in Mumbai, told TOI, "On a conservative estimate, I can say that we will commit investments of over $100 billion or thrice the investments committed by Japan during our President Xi Jinping's visit next week. These will be made in setting up of industrial parks, modernization of railways, highways, ports, power generation, distribution and transmission, automobiles, manufacturing, food processing and textile industries."

The consul-general's statements coincide with Modi's call for world class infrastructure projects after his review of major infrastructure sectors on Friday. The government also announced new projects worth Rs 9 lakh crore in energy, power, and roads.

China will initially invest $7 billion in industrial parks in Pune and Gandhinagar. "The Pune industrial park — spread across 5 square kilometres with an investment of $5 billion — will be for automobiles that will employ one lakh people and manufacture 1.5 lakh speciality vehicles. The Gujarat industrial park will be for manufacturing power equipment. China is also working on setting up an industrial park in Tamil Nadu for the textile sector and another one for the food processing sector," said Liu.

Chinese investments in industrial parks are just the tip of the iceberg as Chinese firms are eyeing over $50 billion worth of investments in modernization of the Indian railways and running bullet and hi-speed trains in India. Modi on Friday said that the railways have been granted clearance for 100% FDI, and therefore it should come up with a comprehensive plan for facilitating FDI in the sector.

"The first bullet train project was given to Japan, which was a government decision. We are optimistic of building India's next bullet train in India. Besides bullet trains, we want to connect the cities with high-speed trains with speed of 160 km/hr. We will also look at modernization projects of Indian Railways across the country," said Liu.

China is willing to invest another $50 billion in roads, ports and the NDA government's ambitious river-linking plan. "India has over 600 reservoirs that need dredging work to provide better irrigation systems for the farmers. We are looking to work on that. Besides, our major thrust will be on construction of roads and ports," said Liu.

On Friday, road transport and highways minister Nitin Gadkari announced the launch of new roads and highways projects this year worth Rs 2 lakh crore.

Power minister Piyush Goyal said that $100 billion of investments are likely to flow into India's renewable sector in the next four years. Oil minister Dharmendra Pradhan, while meeting Odisha chief minister Naveen Patnaik, said that Odisha alone will receive about Rs 1 lakh crore worth of investment in the next five years in petrochemicals, oil & gas pipelines, LNG & LPG terminals, and strategic oil reserves to make it the 'energy gateway for eastern India.

The Chinese president is coming with a delegation of over 100 business heads, including those from China Harbour, China Railway Construction Group and Huawei, among others, and will address a business gathering of over 400 Indian CEOs in Delhi. The big four Chinese banks — Bank of China, Industrial & Commercial Bank of China (ICBC), China Construction Bank and the Agriculture Bank of China — are also coming with the delegation to give billions of dollars in loans to Indian infrastructure projects to be done in joint venture with Chinese firms.

"All major JV projects will be funded by Chinese banks. Major corporate houses like Tatas, Infosys, Reliance and Essar have already taken loans from these banks and the funding will only increase," said Liu.

China to invest $100 billion in India over 5 years - TOI Mobile | The Times of India Mobile Site

India desperately needs inward investment. .China wants to dump at least some of its $ 4 trillion worth of foreign reserves abroad as it does not want to stoke the domestic credit bubble any further..seems like win win for both countries. More importantly, deepening financial ties between China and India is also likely to bring lasting peace to the region..
 
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kbd-raaf

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China to invest $100 billion in India over 5 years

MUMBAI: Chinese president Xi Jinping will bring along with him $100 billion or Rs 6 lakh crore of investment commitments over five years during his upcoming India visit next week. This is nearly thrice the $35 billion secured by Prime Minister Narendra Modi during his Japan trip.

Jinping will land in Modi's home state Gujarat on September 17 — the Prime Minister's birthday — following his visit of Tajikistan, Maldives and Sri Lanka.

Confirming this, Liu Youfa, China's consul-general in Mumbai, told TOI, "On a conservative estimate, I can say that we will commit investments of over $100 billion or thrice the investments committed by Japan during our President Xi Jinping's visit next week. These will be made in setting up of industrial parks, modernization of railways, highways, ports, power generation, distribution and transmission, automobiles, manufacturing, food processing and textile industries."

The consul-general's statements coincide with Modi's call for world class infrastructure projects after his review of major infrastructure sectors on Friday. The government also announced new projects worth Rs 9 lakh crore in energy, power, and roads.

China will initially invest $7 billion in industrial parks in Pune and Gandhinagar. "The Pune industrial park — spread across 5 square kilometres with an investment of $5 billion — will be for automobiles that will employ one lakh people and manufacture 1.5 lakh speciality vehicles. The Gujarat industrial park will be for manufacturing power equipment. China is also working on setting up an industrial park in Tamil Nadu for the textile sector and another one for the food processing sector," said Liu.

Chinese investments in industrial parks are just the tip of the iceberg as Chinese firms are eyeing over $50 billion worth of investments in modernization of the Indian railways and running bullet and hi-speed trains in India. Modi on Friday said that the railways have been granted clearance for 100% FDI, and therefore it should come up with a comprehensive plan for facilitating FDI in the sector.

"The first bullet train project was given to Japan, which was a government decision. We are optimistic of building India's next bullet train in India. Besides bullet trains, we want to connect the cities with high-speed trains with speed of 160 km/hr. We will also look at modernization projects of Indian Railways across the country," said Liu.

China is willing to invest another $50 billion in roads, ports and the NDA government's ambitious river-linking plan. "India has over 600 reservoirs that need dredging work to provide better irrigation systems for the farmers. We are looking to work on that. Besides, our major thrust will be on construction of roads and ports," said Liu.

On Friday, road transport and highways minister Nitin Gadkari announced the launch of new roads and highways projects this year worth Rs 2 lakh crore.

Power minister Piyush Goyal said that $100 billion of investments are likely to flow into India's renewable sector in the next four years. Oil minister Dharmendra Pradhan, while meeting Odisha chief minister Naveen Patnaik, said that Odisha alone will receive about Rs 1 lakh crore worth of investment in the next five years in petrochemicals, oil & gas pipelines, LNG & LPG terminals, and strategic oil reserves to make it the 'energy gateway for eastern India.

The Chinese president is coming with a delegation of over 100 business heads, including those from China Harbour, China Railway Construction Group and Huawei, among others, and will address a business gathering of over 400 Indian CEOs in Delhi. The big four Chinese banks — Bank of China, Industrial & Commercial Bank of China (ICBC), China Construction Bank and the Agriculture Bank of China — are also coming with the delegation to give billions of dollars in loans to Indian infrastructure projects to be done in joint venture with Chinese firms.

"All major JV projects will be funded by Chinese banks. Major corporate houses like Tatas, Infosys, Reliance and Essar have already taken loans from these banks and the funding will only increase," said Liu.

China to invest $100 billion in India over 5 years - TOI Mobile | The Times of India Mobile Site

India desperately needs inward investment. .China wants to dump at least some of its $ 4 trillion worth of foreign reserves abroad as it does not want to stoke the domestic credit bubble any further..seems like win win for both countries. More importantly, deepening financial ties between China and India is also likely to bring lasting peace to the region..
Amazing diplomacy Mr Modi. Thanks be to the foresighted Chinese.

And China can't use its foreign reserves for international investment. At best it can be used as collateral for loans.
 

Guynextdoor2

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About time they looked at us as 'friends' rather than 'enemies'. We should go the extra mile and use this as an opportunity to prove to that we have a lot of things in common- allow their businesses to operate efficiently, get them to talk instead of mess around. This is ASIA and we as a people (including pak if they let go of 'non state actors') and we have to claim our place in history.
 

FaujHistorian

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About time they looked at us as 'friends' rather than 'enemies'. We should go the extra mile and use this as an opportunity to prove to that we have a lot of things in common- allow their businesses to operate efficiently, get them to talk instead of mess around. This is ASIA and we as a people (including pak if they let go of 'non state actors') and we have to claim our place in history.

For modern day Chinese gov, there is no friend or enemy, just dumping ground for their products and services.

The only exceptions to this rule are some islands and S china sea.
 

Guynextdoor2

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For modern day Chinese gov, there is no friend or enemy, just dumping ground for their products and services.

The only exceptions to this rule are some islands and S china sea.
I'm not interested in 'modern day governments'. I'm interested in the cumulative history of our people. Our job is not to repeat the mistakes of our ancestors. the Japanese wouldn't. You take your call- either share the vision of a greater Asia or fall between the cracks of history
 

Yeti

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India can offer higher returns to investing in the west or failed ghost cities in China. They know this and they playing it smart!
 

tonyget

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India gov always suspicious of Chinese investment, Chinese companies being banned from major projects
 

Yeti

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India gov always suspicious of Chinese investment, Chinese companies being banned from major projects
That is not true, look at the Mumbai metro but yes when it comes to things that are strategic like telecoms etc we have to watch our backs as you guys are known to steal, hack and industrial espionage etc.
 

tonyget

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That is not true, look at the Mumbai metro but yes when it comes to things that are strategic like telecoms etc we have to watch our backs as you guys are known to steal, hack and industrial espionage etc.
As if the West never spy on India
 

andy_hujian

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About time they looked at us as 'friends' rather than 'enemies'. We should go the extra mile and use this as an opportunity to prove to that we have a lot of things in common- allow their businesses to operate efficiently, get them to talk instead of mess around. This is ASIA and we as a people (including pak if they let go of 'non state actors') and we have to claim our place in history.
we have 50 billion trade between us already. This number will double very soon. Both Modi and Xi are realists.
 

temujin

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Yes, I know what the CIC is. Check out their equity levels. It's not $4.4T. They issue treasury bonds backed by their foreign reserves as their source of capital.
We are talking about a $100 bln investment and not 4.4 trln in the case of India- in fact much of China's forex reserves are the consequence of current account surpluses and it could potentially use most of it to buy up assets through entities like CIC if it chose to (although it would need to retain a reasonable buffer to account for unanticipated outflows of hot money as well as to maintain RMB's exchange rate against the $)

As for the reminder of your post, the manner in which it was capitalised has little relevance to the purpose of CIC, which is to invest, on behalf of the Chinese state, foreign exchange inflows into the country that are in excess of requirements of exchange rate manipulation and liquidity management...
 
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