Investment in India promising but difficult

India presents promising opportunities for Chinese investment, and New Delhi is encouraging more of it to narrow the trade deficit, but there are obstacles, too.

As China upgrades its domestic industries and extends industry chains, many manufacturers will head overseas to areas with lower costs. India, with its low labor cost but broad market, offers good opportunities for Chinese companies to operate and invest in, according to Liu Xiaoxue, an expert on South Asia at the Chinese Academy of Social Sciences.

The Indian government planned a new round of economic stimulus in January and has called for 17 state-owned companies to complete investments up to 17.6 trillion rupees ($340 billion) in the next fiscal year, The Times of India reported.