M A I N   N E W S

China to invest $20 bn in India; 12 pacts signed
Tribune News Service

New Delhi, September 18
India and China concluded a series agreements, pledging $20 billion investments in five years, opening up an additional route for the Kailash Mansarovar Yatra besides enhancing cooperation in railways and giving greater access to India’s pharma and farm products.

The two sides signed 12 agreements in the presence of Prime Minister Narendra Modi and Chinese President Xi Jinping. Four pacts were signed in Ahmedabad yesterday. Prominent among the ones signed today is an additional route to Mansarovar that has been under discussion for long and pursued by Modi. The pact signed by External Affairs Minister Sushma Swaraj and her Chinese counterpart Wang Yi envisages passage through Nathu La in Sikkim in addition to the existing Lipulekh pass in Uttarakhand.

“The route through Nathu La will augment the capacity and reduce the hardship and journey time, enabling many more pilgrims to undertake the yatra,” the MoU said.

Thanking Xi for opening up the route, Modi said it offered many benefits. “It makes Kailash Mansarovar accessible by a motorable road, which is especially beneficial to the older pilgrims. It offers a safer alternative in the rainy season, makes the pilgrimage shorter in duration, and will help increase the number of pilgrims going there,” said Modi after the delegation-level talks.

Among the other agreements, those pertaining to railways envisages increased cooperation in speed-raising on the existing Chennai-Mysore via Bangalore railway line to 160-kmph; training to 100 Indian Railway personnel in heavy-haul transportation; cooperation in high-speed rail by conducting project feasibility study and detailed project report; redevelopment of existing railway stations by conducting pre-feasibility of two stations; and setting up a Railway University in India.

With New Delhi expressing concern over the growing trade imbalance, which stands at $ 35 billion, the agreement on Five-year Trade and Economic Development Plan lays down a medium-term roadmap for promoting balanced and sustainable development of economic and trade relations between China and India on the principle of equality and mutual benefit.

The main objectives of the plan are to reduce bilateral trade imbalance; strengthen investment cooperation to realise $20 billion investment from China in five years; a transparent, stable and investor friendly business environment; and enhanced cooperation between Chambers of Commerce and financial sectors. These involve pharmaceutical supervision, including registration, speedier phytosanitary negotiations on agro-products for two-way trade, stronger links between Indian IT companies and Chinese enterprises, and increasing services trade in tourism, films, healthcare, IT and logistics. Xi announced that besides working together to improve the railway sector, China will set up two industrial parks — one each in Gujarat and Maharashtra — and also take steps to give more market access to products from India, including pharmaceuticals. The two sides also decided to enhance cooperation in matters related to customs administration and signed an agreement that will help strengthen cooperation to fight trans-border economic crimes and customs offences through sharing of information. It would also facilitate trade through enhanced customs cooperation.

New Mansarovar route via Sikkim

• India and China on Thursday signed 12 pacts with key one being opening of a new route to Kailash Mansarovar via Nathu La in Sikkim. This is in addition to the existing Lipulekh pass in Uttarakhand and will help reduce hardship and journey time
• China will help strengthen the railway network in India by increasing speed of trains, studying feasibility of cooperation in high-speed railways and redevelopment of railway stations
• As part of the Five-year Trade and Economic Development Plan, the two countries will take steps to promote balanced trade relations. This includes enhanced cooperation between Chambers of Commerce and financial sector.