Agreement Signed with China for Setting up Chinese Industrial Parks

A Memorandum of Understanding (MoU) on Cooperation on Industrial Parks in India was signed between the Ministry of Commerce and Industry of the Republic of India and Ministry of Commerce of the People’s Republic of China on 30 June, 2014. Both the countries have agreed to cooperate to increase mutual investment in each other’s economies in accordance with the relevant domestic laws and regulations of each country, and on the basis of equality and mutual benefit. Both the countries have also agreed to share relevant information on the regulatory framework and investment priorities/projects as may be needed during the preparation of investment proposals. Both the countries have also agreed to provide necessary local assistance to implement projects under this MoU.

Widening trade deficit with China is a major concern for India. Signing of the MoU is expected to facilitate investment from Chinese companies into India, facilitate an orderly flow of production factors from China into India and accelerate development of competitive manufacturing sector in India as a result of which many goods which are now being imported from China could be expected to be produced in the country which in turn is expected to reduce the country’s trade deficit. Increase in manufacturing growth will also provide gainful employment to large number of youth in the country.

The information was given by the Minister of State (Independent Charge) of the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.