India, China may build new framework for investments
India and China are exploring new frameworks for business exchanges and investments. Beijing may unveil an investment package for India during President Xi Jinping's visit. This includes a special economic zone with easier sea route access. Efforts are underway to ease approval processes for Chinese investments in non-strategic sectors. Both nations aim to improve overall ties and manage…
New Delhi and Beijing are discussing a framework to boost bilateral business ties, particularly Chinese investments in India, as diplomatic relations between the two nations thaw, according to sources. China may unveil an investment package during President Xi Jinping's BRICS summit visit to New Delhi on September 12-13, which includes a special economic zone with easier access to the sea route.
Xi will meet with Indian Prime Minister Narendra Modi in New Delhi, a move that was discussed during NSA Ajit Doval's recent visit to Beijing. The focus of the package is likely to be on electric vehicles, particularly Chinese EV maker BYD, entering the Indian market. Another proposal is an export processing zone in India built with Chinese funding.
However, there are limits to the scope of Chinese investments, such as prohibitions on projects along the Line of Actual Control and sensitive sectors like defense. Indian officials are pushing for enhanced Chinese investments and increased imports from India to narrow the significant trade deficit.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
