The Embassy of India, Beijing, in partnership with the International Cooperation Department, National Development and Reform Commission (NDRC) organized an ‘India-China Investment Forum’ in Beijing on Feb 26, 2013. Dr. S. Jaishankar, Ambassador of India to China and Mr. Zhang Xiaoqiang, Vice-Chairman, NDRC delivered key-note addresses.Around 270 representatives from Chinese companies participated in the Forum.
2. The ‘India-China Investment Forum’ was an outcome of the 2nd India-China Strategic Economic Dialogue (SED) held in New Delhi on Nov 26, 2012. The objective of the Forum was to present to Chinese companies the opportunities for investment in India, brief them on the policy and regulatory framework to enhance their understanding of the Indian market, and understand concerns of Chinese companies investing into India with a view to address them in short and long-term. A publication ‘The Complete Guide to Investing in India’ brought out by the Embassy was also formally launched during the Forum.
3. During his speech, Dr. S. Jaishankar, Ambassador of India to China stated that the climate in India today is welcoming of FDI, including from China. Chinese companies could take advantage of India’s goal to increase the share of manufacturing in the economy from 16% today to 25% by 2022. Investments could also help address the trade imbalance created by market access challenges. In response to concerns flagged on process problems, Ambassador promised that they would be seriously examined and appropriately addressed. In certain cases, implications of recent decisions taken by the Indian Government were clarified.
4. Mr. Zhang Xiaoqiang, Vice-Chairman, NDRC observed that the forum was significant under the 2nd SED mechanism for both sides to improve mutual understanding, extend common views and enhance cooperation. Great progress has been achieved in trade in recent years. Yet the mutual investment is still low. Both sides have to objectively and rationally recognize, face and solve the challenges and difficulties in the investment in India by the Chinese companies. On one hand, enterprises of both sides should further intensify the exchanges, positively adapting to the market in the other country, making full use of their advantages, innovating cooperation modes and improving adaptabilities to changes. On the other hand, both the governments should intensify communications, coordination and promotion through relevant platforms such as the India-China Strategic Economic Dialogue (SED) mechanism so as to create a more open and more convenient investment environment.
5. The Forum also saw presentations on investment opportunities for Chinese companies in India by the Embassy, on financial support by China Development Bank (CDB), on legal and regulatory framework for investments into India by Dacheng Wong Alliance LLP and by two special economic zones from India- Sri City and Khed City. Five Chinese companies Huawei, Zhejiang Feida Environmental Science & Technology Co., Ltd., China Power Construction Corporation of China, CSR and Shanghai Electric also presented their view of the opportunities and challenges of investing into India.
6. The Chinese companies also shared their views on the potential of Indian market in the Forum. Both sides jointly discussed potential investment opportunities and challenges in order to strengthen mutual understanding and trust. The Indian Embassy reiterated its commitment to strive to resolve the issues faced by Chinese companies in India.
Feb 26, 2013