China Aims To Surpass Japan With Its Billion Dollar Investment In India

Sep 15, 2014 11:48 AM EDT

(Photo : REUTERS/Stringer) Employees inspect a bullet train at a high speed railway maintenance station in Xi'an, Shaanxi province. Mexico has granted a Chinese-led group a multi-billion dollar contract to build high-speed trains and a 130-mile rail link in the country - the first time China will export its high-speed trains.speed trains.

China aims to surpass Japan by scaling up investments in India more than what its rival committed, reports said.

The Asian giant will pledge billions of dollars in trade development with India and infrastructure projects, including railways during President Xi Jinping's visit to the country this week.

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Leaders and representatives from China, Japan and India, or the three biggest economies in Asia, were seen traversing in the region seeking investment opportunities and forging ties this month.

Chinese officials have articulated the communist country's investment intentions in India, as Xi's visit on Sep. 17 comes to a close.

They said China looks to invest between US$100 billion and US$300 billion in India's high-speed railway plan that would include bullet trains.

Compared to China's US$500 billion budget for overseas investment in the next five years, the share allotted for India is large.

According to reports, China is eyeing the Bangalore-Mumbai, Bangalore and Chennai train tracks as Japan was able to acquire the Mumbai-Ahmedabad bullet train project.

Japan's investment in India amounts to US$35 billion that was committed during Indian Prime Minister Narendra Modi's Tokyo visit earlier this month, reports said.

China, whose investment in India is currently at US$400 million concentrated in Gujarat, aims to surpass Japan's investment commitment to the railway project.

In addition, China's investments are also intended to address India's increasing trade deficit that averages US$35 billion.

Reports said India already welcomed China to modernize its railways. The plan mainly includes track replacement and development of train stations.

It also includes investments in mega infrastructure projects and the establishment of two industrial parks, one in Gujarat and another in Maharastra.

The prospect for China-India trade ties looks promising despite recent rows of territorial dispute. However, the investment opportunities look too attractive to delay even with renewed concerns of the dispute.

TagsAsia