New Delhi: Close on the heels of Prime Minister Manmohan Singh inviting Chinese investments to India, the two countries will hold Stategic Economic Dialogue here on Monday with focus on infrastructure, energy and Information Technology among some other subjects.
The second such dialogue is aimed at discussing ways to enhance investments and business engagement between the two of the fastest growing economies, significantly at a time when the western world is in deep crisis.
The two sides are expected to sign upto 10 Memoranda of Understanding covering various sectors.
The Indian delegation will be led by Deputy Chairman of Planning Commission Montek Singh Ahluwalia while the Chinese side will be headed by National Development Reforms Commission Chairman Zhang Ping.
The Strategic Dialogue is taking place against the backdrop of the Prime Minister seeking Chinese investments.
Singh, who pressed for greater investments from China during his meeting with Premier Wen Jiabao in Cambodian capital Phnom Penh on Monday last, said it will help address trade imbalance and create jobs.
India has been concerned over widening trade imbalance in favour of China which now stands at around USD 40 billion in a bilateral trade of USD 75 billion. To address this, India is seeking better access to Chinese markets, particularly in IT, services and pharmaceutical sectors.
During the day-long strategic economic dialogue, three MoUs would be signed including one between Planning Commission and National Development and Reforms Commission of China on planning and policy coordination between the two countries.
The second MoU is on sharing the technology and experience in energy efficiency measures and the third one is between NASSCOM (of India) and their counterpart in China.
Business to business MoUs are also likely to be signed. Seven such MoUs are planned but exact number will be known later, said Plan panel Secretary Sindhushree Khullar.
During this dialogue, the two countries would set up five working groups for cooperation in the areas including railways, energy, environment protection (energy efficiency and water), Hi-Tech (Information and Communication Technology) and policy coordination, she said.
The Dialogue was established in 2010 during Wen’s visit to India and the first round was held in Beijing in September last year.
India’s Ambassador to China S Jaishankar, meanwhile, said in Singapore that around 200 representatives of Chinese business are expected to travel to New Delhi for the dialogue.
“It is important that Chinese investments feel welcome in India…. As part of this strategy, the information gap is being addressed through an investors’ guide to India, specifically written for Chinese companies,” he said at a symposium on “India and China: Fifty Years After”.
“We hope to be able to highlight a number of sectors for future cooperation,” he said.
Emphasizing on the need to build close economic relations with the Chinese government, businesses and corporations, Jaishankar said, “It must also be recognized that Chinese companies have a limited understanding of the Indian market. India may be China’s seventh largest export destination. But most of that business was delivered by Indians sourcing in China, rather than Chinese marketing in India.”
He also asked Indian companies to understand the working of Chinese market and stressed that China would provide a different set of opportunities for those willing to make commitment now.
“Challenges faced in investment are very different in India and China. They bear examination because today, many companies are poised to make decisions. Weak demand in developed markets could push them in the right direction faster than we might expect,” Jaishankar said.
The Indian envoy also stressed on the need for increasing student exchange between China and India. While over 10,000 Indian students are studying in China, less than 1,000 Chinese are doing so at the higher learning institutions in India.
He also favoured efforts to increase tourism trade between China and India and underlined the importance of teaching Chinese in higher learning institutions in India.
