Chinese President likely to announce infrastructure investments on India visit

The government on Wednesday said the forthcoming visit of Chinese President Xi Jinping is expected to bring about a "directional change" in the relationship between the countries in addition to boosting trade and investments.

Commerce and Industry Minister Nirmala Sitharaman said that some announcements are expected during the visit with regard to setting up of industrial parks by China.

"This visit will bring a directional change to the relations between India and China in the last 60 years. The directional change will also help further strengthen the ties between the two nations," she said.

"We think during this visit some announcement will be made pursuant to which China will move forward in setting up industrial parks in India," she added.

The Chinese President is scheduled to visit India from September 17. He will start his three-day official tour from Ahmedabad.

China is expected to announce investments worth US $5 billion in setting up two industrial parks in Gujarat and Maharashtra.

The commerce minister said the widening trade deficit with China was "worrying" and in order to reduce this the government had asked the neighbouring country to give more market access to Indian products and set up manufacturing units in the country.

"Manufacturing in China and selling in India is not looking favourable to India. We believe this visit will present a good scope for increasing China's investment and trade with India," Sitharaman said.

The bilateral trade between the countries stood at US $65.85 billion in 2013-14. The trade deficit was about US $35 billion. China has invested only US $410 million between April 2000 and June 2014.

Further the Minister informed that both the sides had discussed issues related to investments in the country's railways sector during her recent visit to China.