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CEO Forum for fighting trade barriers

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BS Reporter New Delhi
Last Updated : May 21 2013 | 2:03 AM IST
Top executives of 20 large companies from both countries today vowed to jointly oppose trade protectionism to create a conducive environment for investment.

The chief executive officers of these companies resolved to expand the scope for trade and eliminate trade and investment barriers to promote balanced trade. The Chinese delegation urged the Indian government to relax the restrictions on entry of Chinese banks and opt for a more open policy.

At the first India-China CEO Forum here, Anil Ambani, chairman of Reliance Group, said Indian companies would like to see more equity funding by Chinese companies.

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China ranked 31st among countries contributing to foreign direct inflows (FDI) into India. It contributed $244.76 million of FDI inflows during April 2000 and February 2013. This accounted for 0.13 per cent of total FDI inflows into the country.

It was argued by speakers that India is one of the most information technology (IT)-advanced nations and has one of the biggest pharma industry. China can leverage its IT sector with India's assistance and it is one of the biggest markets for India in this regard.

India is also known for its high quality and affordable generics. FDIs and more cooperation can help India and China provide low-cost effective health care.

Both can look forward to work on developing low cost solutions and engage in reserach and development.

Ambani, who is the Forum Chairman on the Indian side, regretted that no trade under a mechanism of rupee-RMB-dollar trade could take place despite the two countries setting up this arrangement in 2012 with an initial limit of $ one billion.

He called for utilising this route to reach the initial limit. He called upon the participants to seize the opportunity, use the new platform or business-to-business contracts to enhance trade cooperation between the two countries.

Hu Huaibang, the Forum Chairman on the Chinese part and President of China Development Bank, said the goal of attaining the bilateral trade of $ 100 billion by 2015 was eminently feasible if enterprises of the two countries engage constructively with each other.

India, he said, had set a target of achieving 8 per cent average annual growth during its 12th Plan period (2012-13 to 2016-17) and proposed to build its physical infrastructure by investing US$ 1.2 trillion during the five-year period.

He asked the Chinese companies to seize the opportunity and help build world-class infrastructure in India.

Ambani said in view of the large populations of the two countries and given China's experience in providing life cover to its people, there was a need to get more Chinese companies in India's insurance sector.

He also called for filming of movies in each other's country, a move that will trigger travel and tourism on both sides.

Ambani asked the Forum members to identify five issues both at the policy and sectoral levels so that these could be sorted out before the forum's meeting next year.

On the occasion, China International Council for the Promotion of Multinational Corporations (CICPMC) and the Federation of Indian Chambers of Commerce and Industry (FICCI) signed a 'India-China Enterprises CEOs Forum Mechanism Joint Communique', 'India-China Enterprises CEOs Forum Mechanism' and 'Memorandum of Cooperation Between the two bodies.

The Chinese and Indian enterprises which participated in the Forum represented sectors such as manufacturing, energy and resources, finance, high-tech industry and culture industry.

Shashi Ruia, Chairman, Essar Group; G Subba Rao, CEO, GMR Group; Feng Guiquan, Vice President, China Minmetals Corporation and Jia Baojun, President, Sinosteel Corporation also spoke on the occasion.

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First Published: May 21 2013 | 12:44 AM IST

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