India today asked Chinese companies to invest here and set up manufacturing units to help bridge the widening trade gap between the countries, which stood at USD 36 billion in 2013-14.
Expressing concerns over ballooning trade deficit with China, Secretary in the Department of Industrial Policy and Promotion (DIPP), Amitabh Kant, said that huge scope is available in India for Chinese firms to relocate their manufacturing units.
"It is important that Chinese companies come to invest in India because the trade imbalance is unsustainable in the long run. It will be difficult to continue this business unless and until Chinese companies relocate and manufacture in India and from India penetrate the global market," Kant said.
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He was addressing Ficci's India - China (Zhejiang) Business Cooperation Conference. Jack Ma, founder of the world's biggest e-commerce firm Alibaba was also present at the function.
The bilateral trade stood at USD 65.85 billion in 2013-14. India's imports from China were valued at USD 51.03 billion while exports were USD 14.82 billion in that period.
Kant said that Indian government has taken a series of steps to improve business climate and ease of doing business.
There is a need for a closer economic relationship between the countries to promote regional trade and development, he said, adding trade and economic relationship has seen a lack of progress in the last few years.
"This adverse trade is not sustainable in the long run. China is the factory of the world and India is the back office of the world ... If China and India works together, we will be able to facilitate global markets," he said.
Talking about foreign direct investment (FDI) policy, Kant said that the DIPP has liberalised the policy in several sectors such as defence, railways and construction and in these areas Chinese firms can explore opportunities.
"We can work together to drive Chinese manufacturing in India. There is a huge potential for FDI inflows (from China). India is one of the most easy places to invest," he said, adding young entrepreneurs of both the sides should work together to push economic growth of both the nations.
Referring to Jack Ma, he said: "He must go back realising the immense potential of India".
