China offers to finance 30 per cent of India’s infrastructure development plan

[kaykay]

There are areas where China can help India alot when It comes to Infrastructure. I hope next govt will work with China as its the need of hour and It will lead both to improve our ties too.

 

[Rajaraja Chola]

China is the way to go for Indians. Bow before the dragon and the prosperity will be in the horizon.

Considering you have been bowing to all other countries since existence, I have not seen any prosperity in BD jamaati.!

 

[jarves]

It has effectively become a China Vs Japan battle in India now Hope India makes the most of it. Japan Funding DMIC & CBIC.
China can be offered any other corridors like Kolkata Delhi, Indore- Delhi, Bangalore Mumbai, Hyderabad Chennai Etc

I didnt knew that Japan is also funding CBIC.Any links??

 

[pigtaker]

bullshit, India's self delusion. I do not believe China Gov will be supid enough to allow that happen as far as India is hostile. Keep dreaming

 

[Rajaraja Chola]

I didnt knew that Japan is also funding CBIC.Any links??

Man have you woke up after a long time? Its been in talks since 2009 and they are aggressively marketing it.

We learnt lessons from Delhi-Mumbai Industrial corridor: JICA | Business Standard
Chennai Bangalore Industrial Corridor - Wikipedia, the free encyclopedia
Japan to invest in Chennai-Bangalore industrial corridor - The Hindu

 

[Jade]

Indian has no reason to refuse, I mean China investors are expecting a substantial rate of return from the investment and Indian also benefits a lot. The reason why India's industrial output is behind China is that the infrastructure is not be able to fully guarantee the long-term operations of business. For companies, a quicker operating cycle by delivering goods to customers in much faster and cheaper way will help this company collecting cash back effectively. And more railways will help this. Indian should welcome China's investment.

It is not the return on investment that is sole reason here. I think the Chinese objective here is to keep its manufacturing industry healthy and in turn generate jobs for Chinese and grow its economy by healthy rate of over 8% for some more years. With investment opportunities dried up in China and with lot of cash, China is looking at good investment opportunities across the world that would keep its own industries running and in turn boosting its own economy . With investment China would also bring its machinery and products into India that would in turn boost its manufacturing industry. That is reason why China wants to invest in manufacturing intensive industries such as railways and telecom in India. But India;s fears are not only of security but also that these investments would lead to further trade imbalance

 

[Rajaraja Chola]

bullshit, India's self delusion. I do not believe China Gov will be supid enough to allow that happen as far as India is hostile. Keep dreaming

Ok, Mr.Pigs oops Taker.!

It is not the return on investment that is sole reason here. I think the Chinese objective here is to keep its manufacturing industry healthy and in turn generate jobs for Chinese and grow its economy by healthy rate of over 8% for some more years. With investment opportunities dried up in China and with lot of cash, China is looking at good investment opportunities across the world that would keep its own industries running and in turn boosting its own economy . With investment China would also bring its machinery and products into India that would in turn boost its manufacturing industry. That is reason why China wants to invest in manufacturing intensive industries such as railways and telecom in India. But India;s fears are not only of security but also that these investments would lead to further trade imbalance

How would be so? They are planning to build manufacturing plants here, which will make India earn foreign exchange. In fact, trade imbalance would be reduced. Japan is doing the same in India. To reduce trade imbalance, they are making investment in India, as markets is raw and cheap for now.

 

[Chinese-Dragon]

This may have something to do with the fact that we are currently in the middle of an enormous economic transition, away from an investment-fueled economy, into a consumption-fueled economy.

China wants to invest more overseas, but there are limited opportunities to do so. We even bought LAND in Ukraine, Ireland and Kazakhstan, but how much further can it go? Infrastructure in Britain, shipping ports in Greece, etc etc.

This decision was probably not a first choice, but rather a need to invest in something other than worthless US treasury bonds.

 

[janon]

How would be so? They are planning to build manufacturing plants here, which will make India earn foreign exchange. In fact, trade imbalance would be reduced. Japan is doing the same in India. To reduce trade imbalance, they are making investment in India, as markets is raw and cheap for now.

As the quote from 'Economist' says, the trade imbalance with China will rise, at least in the short-medium term. But our overall trade imbalance with the world will reduce, because with better infra we could manufacture and sell things to the rest of the world. And overall trade imbalance is what really matters, not that with specific countries. So it's a win-win for India and China.

 

[Jade]

Ok, Mr.Pigs oops Taker.!



How would be so? They are planning to build manufacturing plants here, which will make India earn foreign exchange. In fact, trade imbalance would be reduced. Japan is doing the same in India. To reduce trade imbalance, they are making investment in India, as markets is raw and cheap for now.

There are certain norms that act as a covenants such as only until a % of machinery should be manufactured in host country. I will be surprised if China manufactures everything in India and would only look at India as opportunity to get investment returns. By doing as you suggest China would loose an opportunity to boost its own economy.

 

[janon]

This may have something to do with the fact that we are currently in the middle of an enormous economic transition, away from an investment-fueled economy, into a consumption-fueled economy.

China wants to invest more overseas, but there are limited opportunities to do so. We even bought LAND in Ukraine, Ireland and Kazakhstan, but how much further can it go? Infrastructure in Britain, shipping ports in Greece, etc etc.

This decision was probably not a first choice, but rather a need to invest in something other than worthless US treasury bonds.

The fact is that for Chinese investors, investing in infrastructure in China is not easy anymore, since the infra is already quite well developed. So they have to invest abroad, in other developing countries. And any smart investor will want to invest in countries where the return on investment is big. That is true in India, since our economy will keep growing for the foreseeable future, and investing in infra is bound to make the economy grow faster, and therefore the investors get money from their investment. It is difficult to invest in infrastructure sector in already developed countries, and it is imprudent to invest in countries who's future growth is uncertain. That is why there is a rush to invest in India, by Chinese and Japanese investors. The only hurdle may be the creaking bereaucratic machinery and red tapism.

 

[Chinese-Dragon]

The fact is that for Chinese investors, investing in infrastructure in China is not easy anymore, since the infra is already quite well developed. So they have to invest abroad, in other developing countries. And any smart investor will want to invest in countries where the return on investment is big. That is true in India, since our economy will keep growing for the foreseeable future, and investing in infra is bound to make the economy grow faster, and therefore the investors get money from their investment. It is difficult to invest in infrastructure sector in already developed countries, and it is imprudent to invest in countries who's future growth is uncertain. That is why there is a rush to invest in India, by Chinese and Japanese investors.

The only hurdle may be the creaking bereaucratic machinery and red tapism.

Meanwhile, our money will continue to rot in US treasury bonds.

 

[Star Wars]

We should accept it , India China co-operation is necessary

Meanwhile, our money will continue to rot in US treasury bonds.

Why are you buying treasuries , the day you stop buying is the day U.S end up in a BIG Mess

 

[Chinese-Dragon]

Why are you buying treasuries , the day you stop buying is the day U.S end up in a BIG Mess

For the same reason we are now investing hundreds of billions overseas.

Because we need a place to invest. China's domestic market is saturated, and we are trying to move away from an investment-fueled economic model.

The result is we need to invest overseas. But that is difficult.

Even for buying US treasuries, or Euro bonds, the Chinese government has to "disguise" many of its purchases to avoid people being panicked by how much we are buying.

Our surpluses keep building up, and we need some place to put them.

 

[pigtaker]

Personally, I strongly oppose any dollar invested in India from China. Let them go for Jap with their so called slow and steady development. I would rather our reserve rotten than putting into India.