Prime Minister Narendra Modi, after his talks with President Xi Jinping, Thursday said a new chapter in India-China economic ties has opened with Beijing assuring greater access for Indian goods and capital while also committing an investment of $20-billion over the next five years.
With economic relations on top of the agenda for the talks between the two leaders, the prime minister said he was particularly happy that China had agreed for the setting up of two industrial parks in India and look into how the issue of trade deficit can be addressed.
"I raised the issue of trade imbalance between our two countries. I urged President Xi to give our companies better market access and investment opportunities in China," Modi said after his talks here with the Chinese side.
"The Chinese president assured that he will take concrete steps in this regard."
India-China bilateral merchandise trade stood at $65.88 billion in 2013. While India's exports to China were valued at $14.50 billion, its imports were much larger at $51.37 billion, resulting in a large trade deficit.
Modi, while delivering his statement before the media after the talks at the Hyderabad House here, said India and China have much scope to increase economic cooperation, as it was way below the potential.
President Xi reciprocated what was said by Modi. "China and India will act as twin engines in spearheading economic growth in the region," the Chinese premier said. "China will invest $20 billion in India in five years," he added.
"We will also align our strategy to strengthen rail infrastructure in India."
The prime minister said he was pleased with the inking of agreements between the two sides for two Chinese industrial parks in India and Beijing's commitment to invest around $20 billion in India over the next five years.
"I invited Chinese investments in infrastructure and manufacturing sectors. I am glad that two Chinese industrial parks will be built in India," he said, adding: "The five-year economic and trade development plan is an important step."
Among the 12 pacts that were signed between the two sides Thursday, those on economic ties included cooperation in railways, outer space and culture, commitment for two Chinese industrial parks and $20-billion worth Chinese investments in India over the next five years.
