ET reported that as India plans to invest over USD one trillion on infrastructure projects in the next five years, Chinese companies are gearing up to participate in the process.

Mr Wang Xuefeng minister at the embassy of China in India said the country has several competitive advantages in manufacturing and infrastructure construction.

He said that “The Indian government’s plan to invest one trillion dollars on infrastructure projects offers excellent opportunity for Chinese companies to participate.”

Mr Wang addressing delegates at a roundtable conference titled “India China Economic Cooperation: Win Win Situation” organised by The Associated Chambers of Commerce and Industry of India said that “In the past three years, Chinese enterprises have completed India infrastructural projects with a total value of ten billion dollars. The two-way investment is also showing a booming trend. China’s ever-growing market also means huge space for Indian companies.”

Mr Wang brushed aside fears of hike in tariff and non tariff barriers on imports of some Chinese goods by India or a complete ban on specific items like power and telecom equipment.

China has already raced past the United States, Britain and Japan to become India’s largest trading partner. Trade between the world’s most populous nations with 2.5 billion people jumped 20 fold from 2.9 billion dollars in 2000 to more than USD 60 billion in 2010. It is likely to cross USD 70 billion this year and reach USD 100 billion in the next four years.

After the United States, China is the world’s second largest economy with a GDP of USD 5.6 trillion in 2010 and growing at 10% in the past five years. India is the fourth largest economy in terms of purchasing power parity and expected to become the third largest by 2040.

(Sourced from ET)