India moves to set up industrial parks with China

NEW DELHI Wed Jun 25, 2014 10:35pm IST

Law Minister Ravi Shankar Prasad, pauses during a news conference in New Delhi June 17, 2014. REUTERS/Anindito Mukherjee

Law Minister Ravi Shankar Prasad, pauses during a news conference in New Delhi June 17, 2014.

Credit: Reuters/Anindito Mukherjee

Related Topics

Border Security Force (BSF) soldiers ride their camels as they rehearse for the "Beating the Retreat" ceremony in New Delhi January 27, 2015. REUTERS/Ahmad Masood

"Beating The Retreat" Rehearsals

Rehearsals are on for "Beating the Retreat" ceremony which symbolises retreat after a day on the battlefield, and marks the official end of the Republic Day celebrations.  Slideshow 

NEW DELHI (Reuters) - India has moved a step closer to establishing industrial parks with China, the law minister said on Wednesday, as New Delhi looks to rebalance a $40 billion trade deficit with its northern neighbour.

Ravi Shankar Prasad told reporters that India's cabinet had approved in principle a memorandum of understanding between the two countries for setting up the parks.

The details of the agreement would be available only after the memorandum was signed, Prasad said, but the expectation is that China will invest in low-tax special economic zones and manufacturing hubs in India, which would reduce the need for India to import Chinese goods.

While New Delhi has long pushed for greater market access to cut the deficit, pushing through a firm agreement to bring Chinese investment into India would signal the intent of new Prime Minister Narendra Modi's push to expand manufacturing and revive the country's flagging economy.

Earlier this month China's Foreign Minister Wang Yi met his counterpart Sushma Swaraj in New Delhi and raised the possibility of China investing in industrial parks in India.

Previous efforts to set up the parks have stalled, partly because of Indian security concerns about Chinese companies setting up factories inside the country.

While China and other developing countries have capitalised on relatively cheap labour to expand rapidly their manufacturing base over the past two decades, manufacturing in India accounts for just 15 percent of economic output.

China's own embrace of an export-led model has helped its economy outgrow India's fourfold since 1980.

(Editing by Alison Williams)


After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Reuters Showcase

Telecom Sector

Telecom Sector

India postpones mobile airwave auction to March 4.  Full Article 

Business Strategy

Business Strategy

Uber scraps commissions for its New Delhi taxis.  Full Article 



China's yuan breaks into the world's top five as payment currency - SWIFT.  Full Article 

India’s Male Tenor

India’s Male Tenor

India’s lone male tenor wants to ‘Indianise’ opera  Full Article 

Job Cuts

Job Cuts

Sony to cut 1,000 jobs in smartphone business - sources.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage