China set to pump billions of dollars in India, outwit Japan

By Super
Subscribe to GoodReturns
For Quick Alerts
For Daily Alerts
    China set to pump billions of dollars in India, outwit Japan
    BEIJING: Cash-rich China is looking to outwit rival Japan by pledging to invest billions of dollars in India's railway, manufacturing and infrastructure projects during President Xi Jinping's maiden visit to the country this week.

    As Xi's visit to India scheduled for September 17 draws close, Chinese officials are becoming increasingly vocal about Beijing's decision to scale up investments in India regarded widely as the most safe investment destination, especially after Japan made a splash with commitment to invest $35 billion during Prime Minister Narendra Modi's visit to Tokyo.

    With growing outbound direct investment (ODI) which last year crossed $90 billion, China's investments in India, which so far remained a paltry $400 million, mostly in Gujarat, are now expected to surpass Japan.China's foreign exchange reserves, the largest in the world, reached a record $3.95 trillion in March and it plans to invest around $500 billion overseas in the next five years, a large share of which is expected to find India's way.

    China is positively considering investing in India's ambitious plan to build high-speed railways, including bullet trains.

    Chinese officials say that China would be committing anywhere between $100 billion to $300 billion in the modernisation of Indian railways by replacing existing tracks to increase the speed, station development, establishing industrial parks as well as invest in mega infrastructure projects.

    The improvement of tracks could push the average train speeds from 160kmph to 180kmh, Indian officials say.

    China is also asking India to hand over certain railway corridors for it to build, develop and maintain high speed railway lines.

    While Japan bagged the Mumbai-Ahmedabad first bullet train project, Chinese officials have evinced interest in Chennai and Bangalore and Bangalore-Mumbai corridors to build high-speed trains.

    India has already invited China to modernize railway stations.

    During Xi's visit, China is set to announce two industrial parks, one each in Gujarat and Maharastra to begin a host of manufacturing and energy units.


    The investments are aimed at addressing India's concern of mounting trade deficit which averaged $35 billion in the total $66.4 billion trade last year.

    Xi's visit will focus on economic and trade development, Hu Shisheng, a research fellow at the state-run China Institutes of Contemporary International Relations, told PTI.


    Read more about: china japan investment railways
    Story first published: Monday, September 15, 2014, 9:33 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more