INVESTMENT FOCUS Push for more Indo-China business ties

Pune:

Business and political leaders from both India and China on Saturday pushed for more trade ties and investment by both countries due to global trade wars and unstable commodity prices, with the Indian leaders plugging for investment in Maharashtra.

The leaders, including state tourism minister Jaykumar Rawal, members of the diplomatic corps of the Chinese government, and officials from the Maharashtra Industrial Development Corporation (MIDC), besides industry captains from the region, spoke at the Seventh China-India Forum at a star hotel near the airport.

Union commerce minister Suresh Prabhu also spoke briefly through a video link, on exports of rice and medicines to bridge the trade deficit, which is skewed heavily in favour of China.

The representatives also signed four MoUs at the forum, including a film production and distribution deal, as well as an environmental conference between Indian and Chinese representatives.

The Chinese delegates praised the burgeoning trade ties between the two countries, which exceeded US$ 80 billion last year but also cautioned that challenges were on the horizon.

“There are now more than 1,700 Indian projects in China. Indian companies like Tata, Reliance and Infosys already have their roots firmly there. Chinese companies like Haier and Kingfa have also invested heavily here, including manufacturing in Maharashtra. But globally, trade protectionism is on the rise and the very existence of the World Trade Organisation has been threatened,” Li Baijun, the economic and commercial counsellor at the Chinese embassy in New Delhi, said.

“Besides, there are infrastructure challenges, and the issues of visas, labour, and double taxation,” Baijun added.

Rawal insisted that Indian companies need to bridge the trade gap and added that tourism should be important to invigorate the economy.

“When one tourist visits a certain place, he or she touches around 12 lives and generates economic activity. At this conference, a tourism-related MoU will be signed, apart from cooperation between the two countries on other important fields like blockchain technology. Trade between Indian and China has grown a lot over the past few years, but it seems Indian companies will have to work hard to increase investment in China,” he added.

Dignitaries light the lamp at the inaugural function of the seventh Indo-China Forum at a hotel in Pune on Saturday