In his maiden visit to the country, Jinping committed to invest in India’s railway, infrastructure and manufacturing projects.
The News International Team
Equity benchmarks rebounded smartly with the Sensex rising 319 points and the Nifty advancing nearly 100 points partly on the back of the Chinese president’s pledge to invest USD 100 billion over five years.
Chinese president Xi Jinping vowed to invest USD 100 billion in India over five years, clearly racing ahead of Japanese prime minister Shinzo Abe’s promise to invest USD 35 billion.
In his maiden visit to the country, Jinping committed to invest in India’s railway, infrastructure and manufacturing projects. China and India are likely to sign five MoUs on developing India’s railway infrastructure.
Shares of rail stocks surged 5-7 percent intraday Thursday, riding on hopes of an upgrade as promised by Narendra Modi in his prime ministerial campaigns. The ailing sector is all set to see an improvement after it joins hands with China which will help the nation build high-speed rail network and modernise railway stations.
China’s investment into the country at the moment stands at a poor USD 400 million, that too mostly in Gujarat. Prime minister Narendra Modi’s relations with president Jinping dates back to perhaps 2011 when he was received at the Great Hall of People in Beijing. China and Japan were the only two countries that did not ostracize Modi for 2002 Gujarat riots, like the United States.
China is considering investing in India’s plan to build high-speed railways, including bullet trains. In fact, Chinese officials have said that the country would be committed to investing anywhere between USD 100 billion and USD 300 billion for the purpose of modernising Indian railways – be it for the development of stations, replacing existing tracks to increase speed or for establishing industrial parks.
On day 1 itself – Wednesday – the two nations signed three Gujarat-specific pacts , including setting up industrial parts in the state, making Ahmedabad and Guangzhou city in China sister cities and an agreement between the Gujarat government and Guangdong province for cultural and social ties’ development between the two nations.
China also plans to invest USD 7 billion in industrial parks in Pune and Gandhinagar.
Jinping is the first foreign head to be received by an Indian prime minister outside Delhi. Prime Minister Narendra Modi received Chinese President Xi Jinping in Ahmedabad. Both Modi and Jinping arrived in Delhi late on Wednesday.