Neighbourly lessons

17 September 2014 By Andy Mukherjee

Japan wants to invest $34 billion in India. China’s pledge could be several times as large. Realizing these commitments, and digesting up to 12 percent of GDP in foreign capital over five years, will be tricky. The People’s Republic’s own growth strategy offers a useful template.

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China will commit $100 billion of investments in India over five years “on a conservative estimate,” Liu Youfa, China’s consul-general in Mumbai, told Times of India ahead of Chinese President Xi Jinping’s three-day visit starting Sept. 17.

The Chinese investments will be in industrial parks, modernization of railways, highways, ports, power generation, distribution and transmission, automobiles, manufacturing, food processing and textile industries, the newspaper reported on Sept. 13.

Indian Prime Minister Narendra Modi on Sept. 1 signed a five-year, 3.5 trillion yen ($34 billion) investment agreement with Japanese Prime Minister Shinzo Abe.

Under the accord, Japanese public and private companies will invest in urban infrastructure, transportation, manufacturing, water security, food processing and skill-development projects in India.

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