Chinese investments in India increases by six times: Report
Chinese investments in India grew six-fold in 2015 to $ 870 million from the previous year while more investments are there in the pipeline following easing of restrictions on Chinese firms and favourable tax rates, a state-run daily said ahead of President Pranab Mukherjee’s visit.
Chinese investment in India soared to around $ 870 million in 2015, six times that in 2014, the report said noting that the figure for 2015 was also twice the amount from April 2000 to the end of 2014.
India stepped up the efforts to get Chinese investments in Make In India campaign since last year.
Over 300 Chinese investment officials and investors are expected to take part in India-China Business Forum to be addressed by Mukherjee in Guangzou city.
The total FDI from China in India so far is about $1.24 billion, according to official figures.
Chinese officials said that money has been committed to a no. of projects in India and the cumulative figure is expected to go up.
India, which has liberalizing the investment climate for Chinese investors by removing visa and security restrictions, is insisting for more investments from China as the bilateral trade deficit has touched over $ 48 billion in favour of China in about $ 71 billion trade last year.
Chinese enterprises have been expanding their presence in India in recent years. One of China’s biggest banks, the Industrial Commercial Bank of China has set up a special team in its Mumbai branch in 2015 to provide its Chinese clients with consultation services for mergers and acquisitions in India(M&As) in India.
China’s property giant Dalian Wanda Group announced in January that it would spend $ 10 billion in building an industrial park in North India.
“More Chinese firms are showing their enthusiasm for investing in India due to its huge market potential along with low costs and strong demand,” Pang Guoteng, a research fellow at Shanghai based M&A information provider Morning Whistle Group, said.