India, China Signed Pacts Worth Billions for Economic Co-Operation

India and China on 26 November 2012 signed various agreements worth billions of US dollars to boost up commercial and economic links between the two economies. Both the emerging economies inked 11 MoUs worth investments of 5.2 billion US Dollars in various sectors such as steel, clean energy, power, infrastructure and many more during the 2nd  India-China Strategic Economic Dialogue (SED).

In the agreements, plans to develop 2500 mw renewable energy projects were included and these were worth an investment of 3 billion US dollar by the Reliance Power and China's Ming Yang Wind Power Group along with project financing that will take place from China Development Bank.

Pacts signed

•    Lanco Infratech inked an agreement with China Development Bank worth 600 billion US dollar for financing the Anpara phase II 4 x 660 mw power projects.
•    NIIT signed agreement worth 800 million US Dollar with Province of Hainan for establishment of an IT technology park in Hainan.
At government-to-government level, India and China agreed mutually to cooperate in sectors like modernization of railway stations, high-speed trains, energy efficiency as well as IT sector.

It is important that the two countries cooperate economically because the commercial engagement will have a huge impact on the two economies.

In the delegation, chairman of the Planning Commission Montek Singh Ahluwalia and Zhang Ping, chairman of China's National Development and Reform Commission (NDRC) were present. Other issues which were discussed included looming the trade deficit, cooperation in various areas such as infrastructure as well as sharing of the developmental experiences.

Both the countries also agreed to encourage bilateral investments, enhance the transportation links as well as work towards sustainable and balanced bilateral trade.

Despite being at the loggerheads for various issues such as boundary dispute, India and China are crucial trading partners. As of now, bilateral trade is estimated to be 75 billion US Dollar and there are further plans to raise the level to 100 billion US Dollar by 2015.