India, China firms sign deals despite political tensions
The deals inked in New Delhi during the countries' second strategic economic dialogue included plans for investments in clean energy, infrastructure, electric power, steel and other projects.
"We must aim at a magnitude and intensity of (economic) engagement appropriate for the world's two most populous nations," said Montek Singh Ahluwalia, one of India's most powerful government figures who led the Indian side at the talks.
"It is only through larger mutual investments that we can take the India-China economic cooperation to a higher level," Ahluwalia, deputy chairman of India's economic planning commission, told reporters.
The agreements included a plan to develop renewable energy projects envisaging an investment of $3 billion by India's Reliance Power and China's Ming Yang Wind Power Group, a leading wind turbine manufacturer.
India's debt-laden Lanco Infratech said the state-run China Development Bank would arrange $2 billion worth of loans for its two power projects.
Territorial disputes, Beijing's role as arms supplier to Indian rival Pakistan and the presence in India of Tibet's spiritual leader, the Dalai Lama, all fuel an atmosphere of mutual political suspicion.
At the same time, India and China are major trading partners with bilateral trade totalling $75 billion with the two countries targeting a goal of $100 billion by 2015.
Ahluwalia said the latest tiff between the neighbours over a map issued by Beijing on its new passports claiming disputed territory did not come up in the talks.
At the government-to-government level, India signed an agreement with China to explore cooperation in modernising the dilapidated, more than century-old Indian railway system.
There was no immediate comment from the Chinese side but Ahluwalia said the view "emanating from the Chinese side is that they would also like a deepening of economic cooperation".
He said the large Chinese delegation, which had 180 members, indicated "how serious they are" about improving economic ties.
The economic dialogue emerged from a visit by outgoing Chinese Premier Wen Jiabao to India in December 2010.
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@BlackJack: " Further, we have no problem with China supplying their military equipment to Pakistan – after all, it needs to be tested somewhere." You or China or both need to think that over again. The rate at which Pakistan surrendered hot-off-the-assembly line state-of the-art Patton tanks in 1965 war was simply a disgrace. US sent a special military mission later to investigate why the Pattons had capitulated to India's WWII vintage Shermans and Centurions with such ease. Turned out, Pakistanis just couldn't handle its state-of-the-art technology. Those captured tanks were later put on display in various towns of India. The only thing Pakistanis had time to do before pushing them to the battle lines was to paint them green and number them in Arabic numerals. A couple of those tanks were in full view of the POW camps where some of Bangladesh war POW's were lodged later. It must have been quite galling for those poor chaps!
I am happy for India and China. Why not lead the world through cooperation rather than becoming a pawn in great games of outsiders?
Trade trumps political ideology - hard liners on both sides get pushed aside. America/China relations are a good example. Pakistan should have taken note of this many years ago - won't be long now before India/China become dependent on each other just like America/China.
This indicates the level of maturity on both sides. In the case of territorial disputes, there is no point in upping the ante through jingoism - there are different borders on both sides because the perceptions are different on both sides. Naturally we will stick to our stand, but need to be prepared for a pragmatic resolution in the long run - until then, we can continue to strengthen trade linkages between the two nations.
I fail to understand why AFP reports keep referring to Pakistan as India's rival. Further, we have no problem with China supplying their military equipment to Pakistan - after all, it needs to be tested somewhere.
@Gaurav: That was funnier than you realise.. hehehe.
Trade is heavily in China's favour.China is growing a faster rate than us.As long as things are good in China.China wont attack it is only to distract attention from political crisis than a dictatorship attacks. But India will be at great danger once the Chinese people demand that the govt to stand down and the CPC is weakened. It is only then that they will start a war.Until then its a great time to do business but we must solve the border dispute earliest.It is only a signature away.Exchange Aksai Chin except Demchok for Arunachal Pradesh from China. That way Arunachal and Demchok village remain in India.and China can have Aksai Chin. But US wont be happy.hehehe.
political suspicion is there..........but that doesn't prevent trade and economic relations right?? take the case of japan-china,or say china -russia...........or best example..... india-pakistan..:D
Thats the way to go.Keep it up.