The Union Cabinet on 25 June 2014 approved an in principle memorandum of understanding (MoU) between India and China for setting up industrial parks in the country.
The approval came during a Cabinet meet that was headed by Narendra Modi, the Prime Minister of India. But, the details of the agreement will be available after the agreement is signed.
This approval came at a time, when Hamid Ansari, the Vice-President of India will be on a five days visit to China to celebrate the 60th year of Panchsheel that formed the bedrock of India-China ties. He will be accompanied by Union Commerce and Industry Minister Nirmala Sitharaman.
Apart from this, as per the reports, China is interested in investing in India especially in agro-processing, tourism and manufacturing. A recent study conducted by PHD Chamber of Commerce revealed that China has emerged as biggest trading partner in the current fiscal for India. It has replaced UAE. Trade between India and China has reached 49.5 billion US dollar with 8.7 percent share in India’s total trade. The other two nations are
• US – positioned at the second position with 8.1 percent share of 46 billion US dollar
• UAE – positioned at third position with 8 percent share at 45.4 billion US dollar
Who: Union Cabinet
Where: in New Delhi
When: 25 June 2014