A total of 16 agreements were signed between China and India during President Xi.s visit to India this month. Some of these will create direct business opportunities for Chinese companies in India. Others will enhance long-term co-operation between China and India in various .elds.

A summary of the agreements along with our comments is given below:

Railway Industry
Two agreements were signed between China and India relating to the railway industry.

1. MOU between the Railway Ministries to enhance cooperation: This agreement focusses on topics such asincreasing speed of existing railway lines, development of high-speed trains, training in heavy railway transportation, modernization of railway stations, setting up of a Railway University in India, etc.

2. An Action Plan agreement relating to several speci.c projects was also agreed between the Railway Ministries.

India has an extensive railway network that includes 64,600 kms of railway lines, 7,146 railway stations and 19,000 trains. However, the average speed of trains is less than 100 km per hour. The target of the Indiangovernment is to increase the average speed to 200 km per hour. This will involve government expenditure in every segment of the railway industry including upgrading railway tracks, modernization of signaling, control and electrical systems, renovating railway stations, etc. In addition to this, metro rail (subway) systems are being planned in several Indian cities.

The Indian Government is planning to spend approximately around US$ 135 billion in the railway industry over the next .ve years.
Chinese companies in almost every segment of the railway and construction industry can bene.t from Indianrailway projects. All such projects will be guaranteed by the Indian government. A number of Indian companies with local experience in such projects have already contacted us to develop partnerships with Chinese companies. For large scale projects where local operations need to be established by Chinesecompanies the Indian government will also offer land and other facilities.

Infrastructure
3. Five-year Trade and Economic Development Plan between Commerce Ministries -This Agreement aims to realize investment of US$ 20 billion from China into India within 5 years, increase exports of certain products from India to China to rectify trade

imbalance, provide a transparent, stable and investor friendly business environment for companies from each country in the other country, and enhance co-operation between Chambers of Commerce and organizations in the .nancial sectors.

The US$ 20 billion dollar investment will mainly be focussed on the infrastructure sector such as construction of roads, ports, public housing, logistics hubs and other public facilities.

Chinese EPC companies in these areas will be able to participate in these projects. Financial investors will also be able to partner with Chinese companies in such projects. A number of Indian companies are willing to partner with Chinese companies to help them procure projects and execute them in India.

Automobile Industry
4. MOU between Maharashtra Industrial Development Corporation (MIDC) and Beiqi Foton Motor Co.Ltd. on setting up of industrial parks in Maharashtra: This will lead to the setting up of a 1250 acre Industrial Park near Pune, Maharashtra, providing cluster-type development.

India is forecast to become the third largest automobile market in the world by 2016 with annual turnover expected to touch US$ 145 billion. This sector currently has an annual production of 17.5 million units per year and contributes around 22% of India.s GDP.
Chinese companies from the automotive and automotive component sectors will be .nd this location highly attractive to set up their Indian operations. Incentives such as low-cost land, tax holidays and custom duty exemptions for import of machinery can also be obtained from State Governments.

Industrial Parks
5. MOU between China Development Bank Corporation and Gujarat Government on supporting the setting up of industrial parks in Gujarat.

This will allow Chinese companies to set up new industrial parks or establish their operations in existing industrial parks with the support of China Development Bank. Chinese companies from all sectors will be able to take advantage of this opportunity.
Pharmaceutical Industry

6. Work Plan on Drug Administration and Co-operation between Health Ministries - This aims at enhancing co-operation in .elds of drug standards, traditional medicine, drug testing, etc.

Pharmaceutical companies in both countries will bene.t from this agreement. Chinese companies which export APIs might .nd it easier to obtain licenses as a result of such efforts.

Sister Provinces and Cities
7. The governments of Mumbai and Shanghai have signed a sister cities agreement.

8. Governments of Guangdong Province and Gujarat State have signed a sister province agreement.

9. The city governments of Ahmedabad and Guangzhou have also signed a sister cities agreement.

These agreements are expected to improve interaction between people and enhance mutual understanding.

Trading
10.Minutes of the Tenth Session of India-China Joint Economic Group held in Beijing on 2nd September 2014 were agreed: This will promote bilateral trade and economic cooperation between India and China. Steps to achieve sustainable and balanced trade will be undertaken. Speci.c measures to enhancemarket access to Indian products such as agricultural, pharmaceutical and export of services in China will be expedited.
Chinese trading companies involved in business with India will bene.t from this measure as it will bring down barriers.

Entertainment Industry
11.Agreement between China.s State Administration of Press, Publication, Radio, Film and Television and India.s Ministry of Information and Broadcasting on Audio-Visual Co-production: The Agreement will enable the producers from both countries to get an opportunity to pool their creative, artistic, technical, .nancial and marketing resources to co-produce .lms. It will also help Indian movies to gain greater market access in India.

India.s .lm industry is the largest in the world. This agreement will provide plenty of opportunities for Chinese .lm production companies, investors and other players in the entertainment industry to bene.t from India.s .lm industry.

Economic crimes
12.Agreement between Customs authorities : This will help government agencies to .ght trans-border economic crimes and custom offences through sharing of information. It would also facilitate trade throughenhanced customs cooperation.
Legitimate Chinese companies which have to compete with illegal traders will bene.t from this agreement.

Space Technology
13.MOU between Indian Space Research Organisation and China National Space Administration onCooperation in the Peaceful use of Space: This will help both sides to encourage exchange and cooperation in the exploration and use of outer space for peaceful purposes, including Research and development of scienti.c experiment satellites, remote sensing satellites and communications satellites.

Culture
14. MOU between Ministries of Culture to strengthen exchange and co-operation between cultural institutions: This MOU is intended to foster long-term collaboration between various cultural institutions of the two countries. These cultural institutions include museums, archaeological organizations and performing art centers.

15. MOU for co-operation between National Book Trust of India and the State Administration of Press, Publication, Radio, Film and Television of China: Under this agreement, China will participate in the New Delhi World Book Fair 2016 as the Guest of Honour. The Agreement will help provide people from both countries greater access to publications from the other side.

16. MOU between the Foreign Ministries on opening a new route for Indian pilgrims to visit Kailash Mansarovar Yatra in China.s Tibet region: The new route will allow more Indians to undertake the trip and will also reduce the journey time and hardship.

Please contact us if you require any further information about anything mentioned above.

Meanwhile, enjoy your holiday over the Golden Week period.

 

Related News in Chinese: 习近平主席访印的重要成果 

Please contact us in case of Copyright Infringement of the photo sourced from the internet, we will remove it within 24 hours.