President Mukherjee nudges Chinese companies to benefit from India’s steady economic growth

China is all set to make huge investments in various Indian sectors in the coming months, including the government's flagship projects ranging from smart cities to Digital India. This, because Indian President Pranab Mukherjee has nudged the Chinese business big shots to make good use of the prevailing growth rate in South Asia's biggest country.

ET learned from reliable sources that big Chinese business groups like Shanghai Automative company, Chint group, Sopo Group, Dingshen, and Shanghai Electric company have planned to invest huge in India. Out of this, Chint Group, which deals in renewable energy, is said to have planned an investment of $ 1.5 bn in India, while manufactuing sector Dingshen could be relied on for the creation of up to 3000 jobs in the country.

Other than this, CFLD wishes to set up 10 industrial parks in India, for which it has applied for loans from the BRICS bank.

Other than this, the Alibaba Group would also raise its stake to 70% from the present 30%, while also tying up with Indian government's Mudra Bank.

The reason could also be the depletion in Chinese economy, because of which these groups have to look at India as their prospective market.

Industry sources, however, said that there is a delay in issuing business visas to Chinese nationals, because of which there is a delay in the Indian investments.

Mukherjee has supposedly told Chinese investors that India would grow at the rate of 7.5% over the next decades, so they should take opportunity of Modi government’s pro-investment policies and invest in sectors like Smart City, Skills Development, Digital India and manufacturing sectors.

Earlier, while he was addressing the India-China Business Forum at Guangzhou, the President said, "Although the trade balance continues to be in favour of China, we look forward to expanding our commerce to make it more equitable. India would like to see a greater market for our products in China -particularly in sectors where we have natural complementarities - as in the areas of drugs and pharmaceuticals, IT and IT - related services and agro-products.It is a matter of satisfaction that there is emerging focus on two way investment flows."

"We welcome Chinese investments and entrepreneurs to participate in 'Make in India' and other flagship initiatives of our Government. We will facilitate your efforts to make your investments in India profitable. We must take advantage of the opportunities that abound in the growth of both our economies," he added.

He also pointed out that India has grown at a rate of 7.6% per year over a decade now. "We believe that India cannot grow in isolation. In an increasingly interconnected world, India would like to benefit from technology advances and best practices of different countries. The comprehensive reforms introduced in key areas of our economy have enhanced the ease of doing business in India. Our Foreign Investment regime has been liberalized through simplified procedures and removal of restrictions on foreign investments. These reforms have renewed the interest of global investors in India. In 2014, there was a 32% growth in investments and in 2015, India emerged as one of the biggest global investment destinations."

The bilateral trade between India and China was stagnant at $ 2.92 billion in 2000, but reached $ 41.85 billion in 2008, when China became India's largest trading partner in goods. This figure reached $ 70.4 billion in 2015.

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