India and China Discuss Avenues for Cooperation
India and China have initiated talks aimed at increasing mutual trade to US$100 billion by 2015 in a positive sign not only for India and China businesses, but also for the whole Asian community. This will open the doors to new investment opportunities in both countries as the two Asian economic giants have decided to set up a joint working group to address trade issues and also work on a five-year plan for furthering economic cooperation. The combined working group will be established almost immediately, and will give its recommendations in 90 days.
According to India’s Commerce and Industry Minister Anand Sharma, China has assured India of addressing concerns over several issues, such as the adverse trade deficit as well as market access for India’s IT and pharma products. This is sure to have a positive effect on Indo-Sino relations.
“Considering the concern over the adverse imbalance in trade between China and India, and for greater market access to the Indian companies in particular the government contracts and orders for the IT enabled services, the pharmaceutical companies and to benefit from the collaborative partnership in the pharmaceutical sector considering that 63 percent of the intermediates are imported by India and China. We have been assured of understanding and support,” Sharma said. The Indian Minister also invited Chinese organizations to invest in India’s National Investment and Manufacturing Zones.
China’s Commerce Minister Chen Deming made a statement that there was a need to further build the relationship between the two countries in the face of the weak economic environments in the world.
“For China and India a closer investment relationship can be a very effective solution to addressing the issue of trade imbalance. For the time being every year Chinese companies make outward investment with a total value of over 60 billion US dollars. However the cumulative value of all Chinese investments here in India is merely 580 million US dollars while the number for Indian investment in China is nearly 440 million US dollars. So obviously there is huge potential for both Chinese and Indian companies to make bigger investments in each other’s countries. So with this, I think the two governments need to work together to create a better easier and more relaxing business enabling environment for our potential Chinese and India investors. We need to work together to provide stronger protection for their legitimate rights and interests so that we would be able to lift up our investment relationship to a higher and newer level,” said Chen.
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