New Delhi: The Indian government on Wednesday gave a green signal to its northern neighbour China to set up industrial parks in the country. The move comes ahead of Prime Minister Narendra Modi’s meet with China’s Premier Xi Jinping at the BRICS summit to be held in July.
The Cabinet approved in principle a memorandum of understanding (MoU) between India and China to set up industrial parks in order to boost relations and pump up the manufacturing sector growth. According to Law and Telecom Minister Ravi Shankar Prasad, “Cabinet today has approved in-principle an MoU with China with regard to establishment of industrial parks. The details and the contours of the MoU would be given once it is signed.”
The MoU is expected to be finalised when Vice-President Hamid Ansari visits China between June 26-30 along with Commerce and Industry Minister Nirmala Sitharaman. Signing of the MoU with China will help India improve a $40 billion trade deficit and reduce imports of Chinese goods. Through this agreement the new Modi-led government aims to grow the manufacturing sector of India in order to revive the county’s economy.
Earlier the UPA government had not cleared the MoU partly because of security concerns about Chinese firms setting up plants and industries inside the country and also as the general elections were just around the corner.
In 2013 during the fifth India-China strategic dialogue both nations had recognised five states- Uttar Pradesh, Andhra Pradesh, Gujarat, Maharashtra and Karnataka where the parks could possibly be set up.