Chinese president Xi Jinping has announced a US$20bn financial commitment to India over the next five years.
Xi and Indian prime minister Narendra Modi signed 12 agreements in Delhi on Thursday, including commitments to upgrade India’s railway and a Chinese-backed investment in two industrial parks in India.
Also on the agenda was developing greater market access to Indian goods, including fruit, vegetables, pharmaceuticals and jewellery into China, as well as developing greater tourism ties between the two nations.
While the US$20bn was less than expected, and less than the US$35bn investment that Japan pledged to India earlier this month, Modi said his was assured that China was taking “concrete steps” to addressing India’s concerns over a slowdown in bilateral trade.
“We agreed that our economic relations do not do justice to our potential,” said Modi after the agreements were signed, according to the Economic Times. “I am pleased with the agreements on two Chinese industrial parks in India and a commitment to realise US$20bn of Chinese investments in the next five years. This opens a new chapter in our economic relations.”
The ‘Five-Year Trade and Economic Development Plan’ was signed by Indian commerce minister Nirmala Sitharaman and her Chinese counterpart Gao Hucheng, which aims to lower India’s trade deficit with China after increasing from US$18.65bn in 2009 to US$36.86bn in 2013.
The visit coincided with Modi’s 64th birthday, but was tainted by the long-standing border dispute in the Himalayas, which saw a stand off between Chinese and Indian troops.
Xi’s visit to India follows a trip to Sri Lanka where the Chinese president announced a joint US$1.4bn development of a new port city outside of Colombo.
