The Memorandum of Understanding was signed during the Gujarat Chief Minister Anandiben Patel's visit to the neighbouring country. Patel is leading a delegation from the state to China.
Besides Patel, Prime Minister Narendra Modi, who is currently visiting the communist neighbour, Chinese Premier Li Keqiang and Ahmedabad Mayor Minaxiben Patel were present when the agreement was signed.
'Mahatma Gandhi National Institute of Skill Development and Entrepreneurship' would set up either in Ahmedabad or Gandhinagar, according to a government release.
"Glad to share that India and China have signed an agreement to set up institute of skill development and entrepreneurship in Gujarat," Patel tweeted.
Yesterday, Patel and her delegation took part in the Forum of States and Provincial Leaders in Beijing. In her speech, she emphasised the significance of people-to-people connect in improving trade and cultural relations, the release said.
"Guangdong is known as a manufacturing hub in the world. Gujarat, my province, too is regarded as a manufacturing hub in India. With five per cent of India's population, Gujarat contributes 17 per cent of Indian manufacturing," Patel said, inviting investment in the state.