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

Discussion in 'Foreign Relations' started by Srinivas_K, Feb 20, 2014.

  1. Srinivas_K

    Srinivas_K Senior Member Senior Member

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

    NEW DELHI: China wants to fund a big chunk of India's infrastructure development even though previous attempts have been rebuffed by a government nervous about allowing its neighbour to enter critical areas such as telecom or power over security worries.

    But that hasn't discouraged the Chinese from making a concerted bid that envisages its companies and workers getting deeply involved in upgrading India's decrepit rail, road and power infrastructure besides telecom.

    A Chines ..



    Read more at:
    China offers to finance 30 per cent of India’s infrastructure development plan - The Economic Times

    I think they should be allowed to invest in certain sectors, so that infuture there will be no natioanl security threat scenarios, these guys want returns and they got exhausted in building infras which are not giving any returns in China !
     
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  3. Compersion

    Compersion Senior Member Senior Member

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    They can start with looking at infrastructure development in Arunachal Pradesh and Kashmir (through overall project management and also approval of India). We would not mind finance on roads and rails projects there. And that is the crisp of the issue why India is reluctant and impacts the relationship with PRC.
     
  4. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    When Japanese companies have established well in China why not Chinese companies build here ??

    Only question is which areas should be allowed to invest !

    China can invest in insensitive areas, they want returns and India need investments in infra.

    USA which considers China as a threat is doing a trade of large volumes there by aiding Chinese military. Geopolitics is a complex issue.

    In the long run India has the potential to out do any nation in Asia. The question is where do these nations fit to play second fiddle to India, I sound ambitious as of now.
     
    Last edited: Feb 20, 2014
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  5. ninja85

    ninja85 Regular Member

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    what do they think about india?do they think that this is pakibeggaristan?:rofl::lol::laugh:
     
  6. PredictablyMalicious

    PredictablyMalicious Punjabi Senior Member

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    Take the money and run. India needs money to upgrade its infrastructure. This is a great step. We indians will never forget chinese generosity.
     
  7. Tianshan

    Tianshan Regular Member

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    you choose where the money goes (no sensitive sectors), everyone wins.
     
  8. Compersion

    Compersion Senior Member Senior Member

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    Unfortunately the PRC have a special relationship with Pakistan and also there is the history of the 1962 war along with the policy of Arunachal Pradesh and Kashmir. There is principle and reason (rightly) behind Indias reluctant behavior and India is not in need of cash but expertise. Also there are many other countries and bodies that are able to provide and will be willing to provide finance to India.

    If PRC wants to make inroads into India they need to abandon Pakistan explicitly and also resolve the border disputes. Unfortunately these two areas are in the minds of PRC probably in their favor and used to their advantage and unlikely to be changed. Also there is the fear of India rise.

    We also have the Japanese like you said that have invested heavily in PRC that are looking for new partners and also are getting closer to India. The Japanese unlike the PRC have technology and patented expertise. There is also the ASEAN countries and also Taiwan and also America and recently the British. They are all invested heavily in PRC but are now looking for new partners and also are getting closer to India.

    PRC wants to come to India because it is good for relationship and they do not want to be seen to be aggressors. India ought to welcome PRC at this moment but like you say in a limited way. Its a pity because Chinese people are good people overall and really good business men and women.
     
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  9. Compersion

    Compersion Senior Member Senior Member

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    That is already being done. PRC can come to India already in non-sensitive sectors. There is a lot of business being done already. But PRC wants something like India is doing with the Japanese, Koreans and Americans.
     
  10. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    India is seen as an emerging destination for investments, many nations and MNCs are willing to invest in India. China also want to invest in India it is up to the Security agencies to use this opportunity with out any dangers.



     
  11. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    Where is the generosity here ??

    Chinese are willing to invest in India since they get more returns. There are many nations who want to invest in India.
     
  12. Tianshan

    Tianshan Regular Member

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    well then it's your choice.

    if you think the deal is beneficial or not.
     
  13. ninja85

    ninja85 Regular Member

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    LOL, save it for pakibeggars.
     
  14. Sea Eagle

    Sea Eagle Senior Member Senior Member

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    We can use this money to build more FABs and improve the existing infrastructure.. especially the ordinance factories and shipyards
     
  15. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    China Offers to Invest $300bn in India's Infrastructure Projects

    China is offering to finance as much as 30% of its neighbour India's targeted investment in infrastructure projects over the next few years.

    India's Economic Times reported that a Chinese working group submitted a five-year trade and economic planning cooperation proposal to the Indian government in the first week of February.

    As per the plan, the world's second largest economy will offer about $300bn (£180bn, €218bn) to India for its $1tn investment in infrastructure projects, which are planned over a five year period ending in 2017.

    India previously rejected all China investment proposals, as it was nervous about China's growing influence in South Asia especially in critical areas such as telecom or power.

    The investment would enable Chinese companies to be involved directly in India's rail, road, power and telecom infrastructure.

    A government official familiar with developments told the newspaper that India's commercial department is likely to hold an inter-ministerial meeting next week to discuss the investment proposal from China.

    "China has expressed a strong desire to invest in India's infrastructure sector," the official said.

    "However, it needs to be assessed how to leverage that. We need to identify sectors from where we can gain, such as software or IT, pharma, among others."

    If approved, the investment would be the largest by any single country in India, exceeding the Japanese funds, which previously helped finance a large number of infrastructure projects.

    China's Growing Investment in Asia

    Asia's largest economy currently has more than $3.8 trillion in reserves that it looks to invest effectively.

    China has been investing in developing countries in Asia and Africa, at the same time gaining business for its companies.

    In Asia, China has provided funds to countries such as Pakistan, Sri Lanka, and Nepal, all neighbouring India.

    Since the end of a 30-year long civil war in Sri Lanka, China has emerged as the island nation's largest loan provider. So far, China has loaned about $4bn to the country, funding its massive infrastructure projects in highways, railways, coal power plants, airports and harbours.

    China has also helped crisis-hit Pakistan with a number of infrastructure projects. Last year, China agreed to provide a loan of $9bn to build two large 1,100 megawatt nuclear power plants for Pakistan in Karachi. Pakistani President Mamnoon Hussain, who is on a visit to China, is expected to agree to a $20bn deal with Chinese authorities to build a trade and transport corridor.

    India's recent economic growth and policy reforms have pushed the need for infrastructure developments. China's insistence to invest in India reflects its decision to capitalise on the economic opportunities from the massive requirement for infrastructure in the country.

    China Offers to Invest $300bn in India's Infrastructure Projects
     
  16. Compersion

    Compersion Senior Member Senior Member

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    If it is beneficial I am sure it will be done. I believe India wants access to PRC markets for its software, IT, pharma, among others areas. If PRC and India can have a good arrangement that benefits both it would be good.

    Please tell to your leader thanks for the offer if they are sincere. Is this something better compared to what Pakistan has been offered and provided.
     
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  17. Tianshan

    Tianshan Regular Member

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    india is in a much better economic situation than pakistan though, so you can turn it down if you don't like, or bargain, or add or remove conditions to the deal, etc.

    if we bargain enough i am sure both sides can come up with something that provides benefit to both.
     
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  18. Compersion

    Compersion Senior Member Senior Member

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    What would PRC do to sooth the tears and sulking of the all-weather friend Pakistan. I dont think PRC has had the privilege of the authentic Pakistan sulk with reference to India - ask the Americans.

    Like you say there is potential. But I believe India will probably delay this and get into bed with others first. Please consider it to be a gift we dont want Pakistan to get apprehensive and sulk and cause PRC sudden unnecessary pain and suffering. It might be inevitable in the long-term like you said provides benefit for both.

    Also with the value of the Yuan appreciating it would be good if there is delay for PRC on such matters. This might also be linked to the new leadership (can be Modi) and signal in that direction.
     
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  19. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    This is a strategic move by China, Investments come with power projections and India has to have its won strategy to counter it. It is not that only China is investing India is diversifying its investments.

    It is depends on strategic planners who view China as a main threat, at the same time investments is always a good thing and an opportunity.
     
  20. Tianshan

    Tianshan Regular Member

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    i think pakistan will understand, business is business.

    if they are upset, that is unfortunate, but we have to look after our own interests first. we need to trade and invest for the sake of our own economic growth.
     
    Last edited: Feb 20, 2014
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  21. Compersion

    Compersion Senior Member Senior Member

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    That is why it will be delayed to examine and authenticate the PRC offer and its sincerity get more bargain and access to PRC and also to increase the value of the PRC-Pakistan relationship disruption in favor of India.

    300 billion is a investment not gift. Investment means returns and PRC is betting on India. Do you think they are the only ones.
     

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