Aiming to boost the trade relations between New Delhi and Beijing, China has pledged to invest $20 billion over a period of next five years. This will give a major push to the Indian economy as it will reduce the trade disparity between two sides.
China has also signed pacts to set up industrial parks in Gujarat and Maharashtra. The cities of Ahmedabad and Mumbai will be developed on the lines of Chinese cities Guangzhou and Shanghai, respectively. This will not only improve the trade and economic ties between the neighbouring countries but will also strengthen their cultural ties.
The Dragon has also extended its help in building one of the proposed high-speed train corridors in India. This will give a major push to the Indian Railways which already awaits the big plans from the government for making the national carrier world class. The China Railway Siyuan Survey and Design Group along with other Chinese institutions will conduct the feasibility study for one of the high-speed corridors and will prepare a project report with its financing. Beijing will also assist the Indian Railways with its semi-high speed trains and also help in strengthening our railway tracks.
A work plan on drug administration has also been agreed between Modi and Xi. The two sides will cooperate in the fields of drug standards, traditional medicine and drug testing. There is no denying the fact that Indian pharmaceutical companies are facing tough challenges with their Chinese counterparts in the global market. Opening doors for Indian medicines will help Indian pharma companies to greater market access. It will also help to reduce the trade imbalance between the two sides.
China has also pledged its cooperation in the field of science and space explorations. With every passing year, both India and China are adding new chapters in the field of astronomy and if these two Asian giants will start working together sky will be the limit for Indian and Chinese space research organisations. Taking a positive move in this direction, the two nations have decided to cooperate in exploration and use of outer space for peaceful purposes. This includes R&D of satellites for scientific experiments, remote sensing and communication satellites.
In the field of cultural exchange, the two sides have agreed to enable producers from both the countries to pool artistic, technical, financial and marketing resources and help Indian productions to get better access to the markets.
Beijing has also offered a new road to Kailash Mansarovar Yatra through Nathu La pass in Sikkim which will help thousands of Hindu pilgrims who visit abode of Shiva in Tibet.
Soon after Prime Minister Narendra Modi raised the issue of face-offs between Indian and Chinese troops along the border, especially in Ladakh, the Chinese President reacted saying he has 'noted' New Delhi's concerns and the incidents occur mainly because of the non-demarcated border. By saying this, the Chinese President played down the boundary row. Despite PM Modi raising the Chinese incursion issue boldly, Xi did not seem to have given it that much of importance. This shows China's stalling tactic as XI didn't suggested the ways two sides should resolve such issues. It was expected that Modi-Xi dialogue might have paved way for the conditions for a withdrawal of Chinese troops stationed in the Indian territory.
Xi has said that he would welcome India as a permanent member of Shanghai Cooperation Organisation, a central Asia security grouping of six countries dominated by Russia and China. This would have been a good gesture had it not came with a rider. In lieu of the SCO membership, it seems Beijing wants India to induct it into SAARC. This would isolate India from the grouping of the countries lying in the Indian sub continent. China's inclusion will greatly reduce India's say in the grouping which comprises smaller developing nations.
Prior to Xi's visit, it was indicated that China will invest a whopping $100 billion in India in the coming five years but it came down to as low as $20 billion dollar. This has shocked every one. This is far less than Japan's promise of $35 billion over the same period. It seems the Chinese counsel general in Mumbai had exaggerated it just to create a media hype before Xi's arrival.