India can benefit from China's strength in hardware

After sealing nuclear deal with US President Barack Obama, Indian Prime Minister Narendra Modi is all set to woo neighbouring China. Prime Minister Narendra Modi is set to visit China before May with an aim to seal many deals to boost development in the country.

China is one of India's top trading partners but they vie for regional influence and dispute their border.

Last year,s three-day visit of Chinese President Xi Jinping focussed on significantly ramping up trade and investment. The visit also focussed on the lingering bordering issues between the two countries.

Xi was the first important foreign guest who started his tour to India from Gujarat, home State of Prime Minister Narendra Modi.

Ahead of Xi's visit to India, Narendra Modi said that India can benefit from China's strength in hardware such as creation of infrastructure and development of our manufacturing sector. On the other hand, India's strength in software can help Chinese companies to become more efficient and competitive.

According to a report appeared in Economic Times, Indian steel industries are expecting Chinese technology and low-cost equipment as India’s steel capacity is expected to rise in the next 15 years, driven by growth in infrastructure construction in the country.

Chinese steel companies facing overcapacity problems in their domestic market, it can be a good idea for them to invest in India.

Normally, India's steel companies buy equipment from Europe.

Steel consumption in India is forecast to grow at record rates in accordance with Indian Prime Minister Narendra Modi's "Make in India" campaign.

India's first high-speed railway, a 1,754-kilometer track from Delhi to Chennai that could cost 200 billion Yuan ($32.6 billion) is likely to be constructed by the China.

Economic activity defines relation with China as it is India's biggest trading partner in goods.

Soon after taking office Commerce Minister Nirmala Sitharaman visited China twice. The two countries have forged a mechanism called 'strategic and economic dialogue' (SED) to discuss the trade and other economic issues.

Narendra Modi has expressed his desire to enhance trade and economic cooperation with China. Describing the newly found activism in bilateral relation Modi said India China relation moving "INCH (India-China) towards MILES(Millennium of Enhanced Synergy) ".

The two countries had signed a Memorandum of Understanding (MoU) for Chinese companies to set up industrial parks in India.

Narendra Modi paid five trips to China while in charge of Gujarat, and has said he would like to replicate China's manufacturing prowess in India.

Writing in The Hindu newspaper ahead of his visit, Xi said he appreciated Modi's comment that "China and India are two bodies, one spirit".

In a message, on the occasion of 66th Republic Day, to President Pranab Mukherjee, his Chinese counterpart, Xi Jinping expressed China's willingness "to make concerted efforts with India to lift their strategic cooperative partnership oriented to peace and prosperity to a higher level.

 

Courtesy Niti Central

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