India on Wednesday welcomed Foreign Direct Investment from China, saying that Chinese companies could take advantage of India's goal to increase the share of manufacturing in the economy from 16 per cent to 25 per cent by 2022.
The climate in India today is welcoming of FDI, including from China, Indian Ambassador to China S Jaishankar said while speaking at India-China Investment Forum.
Chinese companies could take advantage of India's goal to increase the share of manufacturing in the economy from 16 per cent today to 25 per cent by 2022, he said, adding investments could also help address the trade imbalance created by market access challenges.
In response to concerns flagged on process problems, the ambassador promised that they would be seriously examined and appropriately addressed.
In certain cases, implications of recent decisions taken by the Indian government were clarified, an Indian embassy statement said.
The meeting was attended by among others Zhang Xiaoqiang, vice-chairman, National Development and Reforms Commission of China, the nodal body of Chinese investment.
In his address, Zhang observed the forum was significant under the 2nd Strategic Economic Dialogue (SED) mechanism for both sides to improve mutual understanding, extend common views and enhance cooperation.
Great progress has been achieved in trade in recent years. Yet the mutual investment is still low. Both sides have to objectively and rationally recognise, face and solve the challenges and difficulties in the investment in India by the Chinese companies, he said.
On one hand, enterprises of both sides should further intensify the exchanges, positively adapting to the market in the other country, making full use of their advantages, innovating cooperation modes and improving adaptabilities to changes, he said.
On the other hand, both the governments should intensify communications, coordination and promotion through relevant platforms such as the India-China SED mechanism so as to create a more open and more convenient investment environment, he said.
Presentations were made at the meeting on investment opportunities for Chinese companies in India on financial support by China Development Bank, on legal and regulatory framework for investments into India by Dacheng Wong Alliance LLP and by two special economic zones from India-SriCity and KhedCity.
Five Chinese companies Huawei, Zhejiang Feida Environmental Science & Technology Co, Ltd, China Power Construction Corporation of China, CSR and Shanghai Electric also presented their view of the opportunities and challenges of investing into India.
The Chinese companies also shared their views on the potential of Indian market in the Forum. Both sides jointly discussed potential investment opportunities and challenges in order to strengthen mutual understanding and trust. The Indian embassy reiterated its commitment to strive to resolve the issues faced by Chinese companies in India, the statement said.