India and China sign historic economic deal

'This opens a new chapter in our economic relations,' Indian Prime Minister Narendra Modi said.

India and China sign historic economic deal

World Bulletin / News Desk

Asia’s two giants have signed a dozen treaties on economic development as Chinese President Xi Jinping concluded his three-day visit to India.

China is to invest $20 billion in India over the next five years and has agreed to open two industrial parks in the western states of Gujarat and Maharashtra.

“This opens a new chapter in our economic relations,” Prime Minister Narendra Modi told reporters on Friday.

“I welcome our five year economic and trade development plan as an important new step to pursue higher ambitions in our economic relations.”

Modi added that specific steps to upgrade India's railways were also agreed.

Although China’s investment is less than the $35 billion committed by Japan over the same period, India is enthusiastic about the construction of a ‘Southern Silk Road’ trade corridor connecting Bangladesh, China, India and Myanmar.

Both countries have also agreed to discussions on civil nuclear energy cooperation and China has allowed Indian pharmaceutical companies and farm products greater access to its huge domestic market.

The high-profile meeting between Modi and Xi took place as reports appeared in the Indian media of a Chinese “incursion” in Ladakh Himalayan region.

Modi said he raised the issue of “repeated incidents” on India-China border with Xi, saying peace and tranquility on the border was an essential foundation for mutual trust.

“I also suggested that clarification of Line of Actual Control would greatly contribute to our efforts to maintain peace and tranquility and requested President Xi to resume the stalled process of clarifying the LAC,” Modi said. “We should also seek an early settlement of the boundary question.”

Xi assured Modi the border dispute would be resolved “at an early date” through “friendly consultation.”

India and China share 35,000km border, parts of which have no demarcation which can lead to skirmishes.

Last Mod: 19 Eylül 2014, 16:49
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