M A I N   N E W S

China inks pact to set up industrial parks in India
DINESH KUMAR
In Beijing

India and China took a step closer to strengthen bilateral economic ties here on Monday with the two sides signing the much-awaited but path-breaking memorandum of understanding (MoU) that provides an enabling framework for Chinese companies to now invest in industrial parks and zones in India under the prevailing policies.

As a result, China can now 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.

Significantly, the two countries also agreed to cooperate to increase mutual investment in each other’s economies and an Industrial Park Cooperation Working Group will be set up to identify and agree upon the detailed modalities for implementing cooperation under this MoU, and to periodically review progress.

Sino-Indian trade is currently severely tilted in China’s favour which New Delhi has been terming as unsustainable. Considering that there is a slowing down of Chinese manufacturing industry, this MoU should provide them new areas for investment, while at the same time benefiting India.

The MoU on Cooperation on Industrial Parks in India, signed by Indian Foreign Secretary Sujatha Singh and China’s vice-minister in the Ministry of Commerce, was among three bilateral agreements signed in the Great Hall of the People today morning in the presence of Vice-President Hamid Ansari and Chinese Vice-President Li Yuanchao soon after delegation-level discussions by both sides.

The two other agreements included the Implementation Plan on Provision of Hydrological Information of the Yarlung Zangbu/Brahmaputra River in Flood Season by China to India and an MoU for cooperation between the Lal Bahadur Shastri National Academy of Administration (LBSNAA) situated in Mussoorie and the China Executive Leadership Academy (CELAP) located in Pudong, Shanghai.

The MoU on Cooperation on Industrial Parks, which will initially be valid for three years, states that the agreement will enjoy the support that the Chinese Government grants to overseas economic and trade cooperation zones as well as the benefits no lower than that envisaged under the prevailing policy frameworks in India such as Special Economic Zone (SEZ), National Investment and Manufacturing Zone (NIMZ) and existing policies of the state governments, as applicable.

Economic engagement is regarded an important aspect of the Strategic and Cooperative Partnership for Peace and Prosperity in Sino-Indian relations. Today’s signing of the MoU is a follow-up to the Prime Ministers of India and China earlier willingness expressed in 2013 to cooperate on establishing industrial zones so as to provide platforms for cluster-type development of enterprises of the two countries.

The Implementation Plan on Provision of Hydrological Information of the Yarlung Zangbu/Brahmaputra River in Flood Season that was signed between India’s Central Water Commission and China’s Bureau of Hydrology, Tibet Autonomous Region, and water Resources by Indian Ambassador Ashok Kantha and China’s Vice-Minister, Ministry of Water Resources, states that in addition to their providing information on the two rivers in flood season (May 15 to October 15 every year), China will also provide hydrological information if water levels are close to reaching warning water levels in non-flood season. India, in turn, will provide China information regarding data utilisation in flood forecasting and mitigation as also information of the related hydrological stations.

The third MoU pertaining to LBSNAA and CELAP pertains to communication and cooperation of training in the area of capacity building of public officials. This will involve exchange of working and study visits to share experiences, holding joint courses, workshops etc; joint participation in research activities and exchange of best practices in the area of training and development.

Vice-President concludes visit

• Vice-President Hamid Ansari concluded his five-day official visit to China by calling on Chinese President Xi Jinping here today. Shortly before that he addressed the Chinese Academy of Social Sciences, the premier think of the country.
• Pointing out that the border clash of 1962 had left a scar on the Indian psyche and had led to a brief interregnum in the growth of ties, Ansari said the two countries had made significant progress in bilateral relations.
• Stating that there would be continuity in foreign policy notwithstanding the recent change in government, Ansari said India did not subscribe to alliance building. “Not do we believe in the logic of containment,” he said. Significantly, he called for an expansion of the UN Security Council, saying it “no longer reflected reality and must be expanded”

Other deals signed

• Implementation plan for provision of hydrological Information of the Yarlung Zanbu/Brahmaputra River in flood season by the two countries
• MoU on communication and cooperation of training in the area of Capacity Building of Public Officials

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