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China talks business, enters into pacts

Indian and Chinese firms signed 23 deals worth $3.43 billion, including the $2.6-billion deal between low-cost carrier IndiGo and China’s largest commercial bank ICBC.

Even as China on Thursday promised to invest $ 20 billion in India, the delegation of over 50 Chinese businessmen accompanying the nation’s President Xi Jinping has given a further fillip to bilateral trade and investment ties, giving companies from both countries an opportunity to explore business options.

The three-day visit of the Chinese President to India has been marked by not only the Chinese government’s pledge to help in building industrial parks and strengthening India’s railway infrastructure but also by a large number of corporate tie-ups.

Giving a boost to infrastructure development, the Export Import Bank of China has signed an agreement to extend a $1.8 billion line of credit to the country’s largest lender —the State Bank of India for projects including those importing Chinese products.

“The agreement is an important building block in the push to the infrastructure sector initiated by the new government which is expected to require an investment of over a trillion dollars over the next few years,” SBI said in a release. The EXIM Bank of China also signed a similar although slightly smaller agreement with ICICI Bank for extending a $1 billion line of credit.

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Meanwhile, private sector lender Axis Bank signed a memorandum of understanding with China Development Bank to “to support its corporate clients by funding them at competitive pricing and also give the Bank an opportunity to work with Chinese companies in facilitating them in their domestic requirements in India.” The $20 billion pledged by the Chinese government over a five-year period is aimed to “reduce bilateral trade imbalance and improve investment cooperation” but is lesser than the $35 billion pledged Japan earlier.

On Wednesday, Indian and Chinese firms signed 23 deals worth $3.43 billion, including the $2.6-billion deal between low-cost carrier IndiGo and China’s largest commercial bank ICBC.

Other agreements signed include the one between Reliance Communications and Huawei Telecommunications (India) for 2G and 3G network expansion, and a 450 MW wind power spare parts purchasing agreement between Mingyang Wind Power and Global Wind Power.

First published on: 19-09-2014 at 02:06:37 am
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