China Set To Pump Billions Of Dollars In India, Outwit Japan

BEIJING: Cash-rich China is looking to outwit rival Japan by pledging to invest billions of dollars in India's railway, manufacturing and infrastructure projects during President Xi Jinping's maiden visit to the country this week.

As Xi's visit to India scheduled for September 17 draws close, Chinese officials are becoming increasingly vocal about Beijing's decision to scale up investments in India regarded widely as the most safe investment destination, especially after Japan made a splash with commitment to invest $35 billion during Prime Minister Narendra Modi's visit to Tokyo.

With growing outbound direct investment (ODI) which last year crossed $90 billion, China's investments in India, which so far remained a paltry $400 million, mostly in Gujarat, are now expected to surpass Japan.

China's foreign exchange reserves, the largest in the world, reached a record $3.95 trillion in March and it plans to invest around $500 billion overseas in the next five years, a large share of which is expected to find India's way.

China is positively considering investing in India's ambitious plan to build high-speed railways, including bullet trains.

Chinese officials say that China would be committing anywhere between $100 billion to $300 billion in the modernisation of Indian railways by replacing existing tracks to increase the speed, station development, establishing industrial parks as well as invest in mega infrastructure projects.

Also Read:
Famous People Who Found Success After Age 40
India Poised To Take Global Leadership Role Under Modi: Rijiju