China reaches out to Modi, may commit $6.5 billion for industrial parks during Xi Jinping 's visit
New Delhi: China is expected to commit investments worth USD 6.5 billion to set up industrial parks in India and sign purchase agreements of over USD 3 billion with domestic companies during the visit of Chinese President Xi Jinping beginning on Wednesday.
Besides, about 16 documents are likely to be signed in areas such as trade and economic development, drug administration and cooperation, an official said.
The Chinese President would start his three-day official visit from Ahmedabad on Wednesday.
Read: India-China relations go beyond 'plain arithmetic': Narendra Modi
China has proposed to set up an automobile industrial park in Maharashtra and a power transmission park in Gujarat.
The Chinese companies are expected to invest about USD 6.5 billion for development of these parks, the official said.
During the visit, about two dozen Chinese companies are likely to sign purchasing agreements with Indian firms to buy products such as copper cathode, sea food, cotton yarn, industrial salt and polypropylene.
Read: China set to pump billions of dollars in India; outwit Japan
These investments and purchase agreements will help India in narrowing the ballooning trade deficit with China, which has reached about USD 35 billion in 2013-14.
Further in railways sector, the Chinese companies may also ink pacts in development of 650 km rail track for high speed train in Karanatka.
The bilateral trade between the countries stood at USD 65.85 billion in 2013-14. China has invested only USD 410 million during April 2000 and June 2014.
