Press Note:MoU on Cooperation on Industrial Parks in India
The MOU was signed by Foreign Secretary and Ms. Gao Yan, Vice Minister, Ministry of Commerce of China on 30th June during the official visit of Vice President of India to China.
2. This MoU provides an enabling framework for Chinese companies to invest in industrial parks and zones in India under the prevailing policies. The two countries have agreed to cooperate to increase mutual investment in each other’s economies and this cooperation will be in accordance with the relevant domestic laws and regulations of each party and on the basis of equality and mutual benefit. An Industrial Park Cooperation Working Group made up of equal number of representatives from both the countries will be set up to identify and agree upon the detailed modalities for implementing cooperation under this agreement and will periodically review the progress.
3. Economic engagement is an important aspect of the Strategic and Cooperative Partnership for Peace and Prosperity between the two countries. Recognizing this, in 2013, the two Prime Ministers of India and China expressed willingness to carry out cooperation on establishing industrial zones so as to provide platforms for cluster-type development of enterprises of the two countries. The MoU is a result of the joint efforts made by the two sides to devise a framework under which the mutual investment can flow.
4. Our 12th Five year Plan emphasized the importance of national investment manufacturing zones and the development of industrial clusters. China can explore the possibility of setting up or participating in the establishment of industrial parks in India to encourage cluster of Chinese firms which will provide economies of scale and management. Last year a delegation from China had also visited India to identify suitable locations for channeling Chinese investments.