The past year has seen a record surge in investment from Chinese companies to India with total investment rising sixfold from 2014, a Chinese Party-run newspaper has reported ahead of President Pranab Mukherjee's visit to China which starts Tuesday.
The paper attributed some of the rise to the Narendra Modigovernment's "Make in India" campaign as well as "favourable tax policies".
Total investment was still a relatively low US$ 870 million in 2015 according to the report in the Global Times, a tabloid published by the official People's Daily.
NET INVESTMENT VALUE OF $10 BILLION
But that number, the report added, is expected to surge with recent major investment deals such as an industrial park in Haryana from real estate giant Wanda group, with a projected net investment value of $10 billion, as well as a $1 billion investment commitment from construction giant Sany.
President Pranab Mukherjee on Wednesday morning attended a high-level summit in Guangzhou and push for greater investment. He began his visit with a community reception Tuesday evening in the southern manufacturing hub, before travelling to Beijing on Wednesday afternoon.
Mukherjee told State broadcaster CCTV in an interview before his arrival that India "requires investment from China in areas like infrastructure, modernisation and development of railways, communication, manufacturing etc." and promised "no risk".
"These are fields in which investment from China is welcome," he said. "Our Make in India, Digital India, Smart Cities programme etc. will open windows for Chinese investment. And, we have the mechanisms through which these investments could be assured and there would be no risk in investment".
CHINESE FIRMS SHOWING ENTHUSIASM IN INDIA
The Industrial and Commercial Bank of China (ICBC), one of China's 'big four' banks which has a branch in Mumbai, last year opened a special team "to provide its Chinese clients with consultation services for mergers and acquisitions (M&As) in India", according to Chinese media reports, which cited a growing interest from Chinese enterprises in seeking mergers.
"More Chinese firms are showing their enthusiasm for investing in India due to its huge market potential, along with low costs and strong demand," a Shanghai-based consultancy told the Global Times.
The paper also quoted a Chinese legal counsel of the India-based DH Law Associates which advises a number of Chinese investors that "currently, there are no laws or regulations restricting Chinese firms from investing in India".
Chinese investors say security restrictions that were seen as 'targeting' Chinese companies deterred investment in recent years. The Modi government has, however, pledged to Chinese companies that China-specific security restrictions would be removed, and the Home Ministry has since given clearances to 19 firms from China as well as liberalised visa procedures.
India Today
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