Chinese manufacturers especially the power equipment and telecom device makers shall establish their plants in India to make bilateral economic cooperation sustainable, said Suresh Prabhu, former Minister of Industry recently.
Speaking at the opening ceremony of 9th China Products Exhibition in Mumbai, Prabhu said, India’s big trade deficit with China can’t be sustainable for long and the fair will be great opportunity for Chinese companies to find Indian partners and produce in India.
“I hope Chinese power equipment producers could produce in India in the next few years,” said Prabhu, who is also a four time member of Indian lower house Lok Sabha.
India had around US$ 20 billion of trade deficit in fiscal year 2009-2010 and 2010-2011 with bilateral trade totaling US$ 59.2 billion in fiscal year 2010-2011, according to a statement by Indian Ministry of Commerce and Industry.
Indian central government is also mulling to levy 14 per cent of customs duty on Chinese power equipment to protect domestic players and narrow trade deficit.
“If Chinese power equipment makers set up plants in India then there will no such problem,” said the minister.
He said, it is in China’s interests to work together with India since India has great growth potential and almost no other country can grow as fast as India in the next few years.
Prabhu also identified states like Maharashtra, Gujarat and Tamil Nadu as preferential location for Chinese operations in India.
Still, Chinese companies face many difficulties to operate in India including the time consuming approval of employment visas and strict restrictions on project visas for Chinese employees.
Saying India and China are strategic partners and neighbors, Prabhu called on both countries to help each other and help the world out of recession.