China offers to finance 30 per cent of India’s infrastructure development plan
China wants to fund a big chunk of India's infrastructure development even though previous attempts have been rebuffed by a government nervous about allowing its neighbour to enter critical areas such as telecom or power over security worries.
But that hasn't discouraged the Chinese from making a concerted bid that envisages its companies and workers getting deeply involved in upgrading India's decrepit rail, road and power infrastructure besides telecom.
A Chinese working group submitted a five-year trade and economic planning cooperation plan to the Indian government in the first week of February, offering to finance as much as 30 per cent of the $1trillion targeted investment in infrastructure during the 12th Five-Year Plan (2012-17) to the tune of about $300 billion.
That's the biggest such offer by any one country, exceeding the funds contributed by Japan, which has traditionally financed some of India's most ambitious projects. The commerce department is likely to hold an inter-ministerial meeting next week to discuss the investment proposal by China to identify sectors of India's interest, a government official familiar with developments told ET.
China has more than $3.8 trillion in reserves — which keeps rising thanks to trade surpluses with other ..
"China has expressed a strong desire to invest in India's infrastructure sector," the official said. "However, it needs to be assessed how to leverage that. We need to identify sectors from where we can gain, such as software or IT, pharma, among others."
A Chinese interest is particularly high in railways, in particular electrification, high-speed trains, wagons, last-mile connectivity and gauge conversion. It has also identified sewage treatment and tunnel building as areas where it can offer substantial expertise. 中国对铁路的投资兴趣特别高，尤其在电气化的，高速列车，车厢，终端连接性和标准的转换。此外中国还能在下水道处理、隧道建设等领域提供充足技术
India however is not keen on allowing Chinese investment in sensitive areas like the northeast and Jammu & Kashmir. The two countries share a turbulent past, having gone to war with each other in 1962 leaving unresolved border issues that flare up occasionally.
As the two most populous countries in the world, they also compete for resources globally, with the Chinese more successful at adding to their reserves.
The home and defence ministries are wary of Chinse investment for strategic and security reasons, the latest example being 100 per cent FDI in railways that the government aims to allow. 印度内政部和国防部对中国的投资仍然有着战略和安全的上得担心，最新的例子是，印度希望是在铁路上获得100%的FDI(而非中国参与建设)。
Regarding this, the home ministry has already flagged security concerns over Chinese companies investing in sensitive areas such as the northeast and Jammu and Kashmir.
"The Chinese have offered to make big investments in India," a Planning Commission official said. "Since there are nine ministries that have been engaging with China at different levels, the department of commerce wants to strike a common strategy."
China contributed just 0.15 per cent or $313 billion of India's total foreign direct investment (FDI) inflows between April 2000 and December 2013.
Japanese investment amounted to $15.3 billion, about 7.3 per cent of the total. The big Japan-funded projects include the ongoing Delhi Mumbai Industrial Corridor and Delhi Metro. The Japanese are also in talks to build a road network in the northeast region.
The Japanese government has approved $4.5 billion for non-commercial projects through Japan International Cooperation Agency (JICA) and commercial lending through Japan Bank for International Cooperation (JBIC), which has 26 per cent equity in DMIC. Besides, Japan has recently committed a loan of $2 billion for Delhi metro
While India and China are targeting $100 billion in bilateral trade by 2015, the balance is heavily skewed in favour of the latter. At the end of fiscal 2012-13, China's trade surplus with India was about $39 billion.China doesn't see this narrowing in the short to medium term due to the nature of the two economies, with India being services led and China a manufacturing economy.
"Allowing Chinese investment into infrastructure sector looks a bit dodgy from the look of it as it will lead to higher import content, likely to worsen the trade deficit between the two countries," said Biswajit Dhar, director general of Research and Information System, a think tank.
"Our strategy should be to let them come with a package, wherein we identify a few parts of the country where they develop the infrastructure and set up manufacturing units there like in case of SEZs (special economic zones)."
China is already in talks with the Indian government to set up industrial parks in India in sectors such as agro-processing and manufacturing.
Ranga Ramanathan (Coimbatore)
Till they vacate occupied Indian territory they should not be allowed to invest a single dollar. They also should explain why they are supporting all insurgent groups including Maoists. 他们不搬出占印领土，他们就不会被允许投资印度1美元。他们还要解释为什么他们要支持叛乱组织，包括毛主义者。
Antonio Barbosa (Goa) China should be more like USA and Canada. Partners in progress. 中印更像是美国和加拿大，发展中的伙伴。
i think, take the advantage of it. Both of us are the vyapari country. Who will have long time capital gain, only time will say 我认为应该从中谋取利益，我们都是发展中国家，谁笑到最后才笑的最美。
One5555 View (Vadodara)
from back door they are alreay inside india .like ZTE covers all bsnl netwrok 他们已经从印度的后门进来啦，就像中兴通讯覆盖了所有BSNL网络。
Given that Indians will never be able to do a good job of anything, they should take China's offer. 考虑到印度人从来没有能力做一件成功的事，他们应该接受中国的请求。
Laxmirangam (Korba, Chattisgarh)
Its fine as far as finances are concerned. But quality maintenance part needs to be monitored by us. 没事只要资金能进来，但是质量环节要在我们监控下。
Shikhar Malhotra (New Delhi, India)
Leaving nuclear energy , its a move to accept . This might help in deficits 放下核能，这是一个可行的进展。这对财政赤字也有帮助。
One can never be sure about china's motives. they are too cunning and indian counterparts wouldn't care to scrutinize their deal. The common man is always at risk in such deals. 我们永远没法知道中国的动机。他们太狡猾，与其洽谈的人没有仔细检查这桩交易，平民将在这个交易下冒风险。
Observer 888 (South Africa) Economically and politically it is much more rewarding for China to use the 300 billion US dollars to finance infrastructure in ASEAN and Central Asian countries. For example 300 billion dollars is more than ample to build a high speed railway line from China through Laos, Thailand to Malaysia and Singapore. Any excess could be used to build a railway line from Western China through the Central Asian countries to Europe. 在经济和政治上应该给与中国正面评价，他们用3000亿美元足以为东南亚和中亚国家建设基础建设。例如，用来建设从中国到老挝、泰国、马来西亚和新加坡的高速铁路，剩余部分用来建设中国西部通过中亚直至欧洲的铁路。
Anand Rai (Noida)
Now this is called development... both countries started together and now china if offering to develop India.. 现在知道什么叫做发展了吧。。。两个国家同时起步，如今中国却开始帮助“发展”印度了。
Mehtasaab (Washington, DC)
Np doubt China made a excellence progress better than India, It does mean we should trust China. Remember 1962. Mao was telling us that hindi chini bhai bhai, then attacked us. 毫无疑问中国的进步好于印度，这是否意味着我们该相信中国，记得1962年，毛说“中印亲如兄弟”，紧接着入侵我们。
My advise to China...forget about India. Even if your offer is without malice or ill will, Indian politicians will think of 10 different reasons against your offer. That is the Indian reality. Geopolitical issues are more important to Indians than human development. The Indian mentality borders on irrationality sometimes. Besides, what's the point of having world class infrastructure while the population have third world mentality. 我给中国的建议是忘了印度吧。就算你的投资不带恶意或者坏心眼，印度的政治家会用10种不同的理由反对你们的投资。这就是的印度的现实。地缘政治问题对于印度人来说比社会经济发展更为重要。印度人有时心智接近于不正常。另外，印度人持着第三世界人民的思想，却想要拥有世界级的基础建设，如何实现？
Sandeep K (India) It is very tough to believe on CHINA. Why China is interested in Indian development not of Pakistan Bangladesh, Bhutan and of China itself. 让人难以理解的是，为什么中国对投资印度有那么大的兴趣，而不是巴基斯坦，孟加拉国，不丹和他们自己呢？
Joezhifu (Singapore) This is the most fantastic news between two great Asian countries. It can only be good for both. Be careful but go for it. All other voices from other countries who did nothing for China and India please stand aside while the Elephant and the Dragon dance into the next century. Love it 这是两个伟大的亚洲国家最好的新闻了，对两国都是极好的，其他国家的杂音对中印两国来说都可以忽略，请靠边站，印度象和中国龙要一起共舞进入下个世纪啦，超爱。
Benjamin A Britto (Goa)
Teaming up with USA will be a grave mistake we are Asians and should work with each other and be mutually benefitted. The western powers will always want us to be lagging behind and use us to their convinience and abaandone us when they dont need us.Good relations with China and strengthen trade and commerce is in greater interest of India and the region. 与美国合作将是极大的错误，我们是亚洲人，应该通力合作，这将互相收益。西方列强总是想要我们落后于他们，以便在他们不需要我们的时候，抛弃我们。与中国发展良好的关系，强化经贸合作对印度和这个地区都是有着巨大的益处。