Chinese manufacturers urged to produce in India
Updated: 2011-12-16 10:10
MUMBAI - Chinese manufacturers especially the power equipment and telecom device makers shall establish their plants in India to make bilateral economic cooperation sustainable, said Suresh Prabhu, former Minister of Industry on Thursday.
Speaking at the opening ceremony of 9th China Products (Mumbai India) Exhibition, Prabhu said, India's big trade deficit with China can't be sustainable for long and the fair will be great opportunity for Chinese companies to find Indian partners and produce in India.
"I hope Chinese power equipment producers could produce in India in the next few years," said Prabhu, who is also a four-time member of Indian lower house Lok Sabha.
India had around $20 billion of trade deficit in fiscal year 2009-2010 and 2010-2011 with bilateral trade totaling $59.2 billion in fiscal year 2010-2011, according to a statement by Indian Ministry of Commerce and Industry.
Indian central government is also mulling to levy 14 percent of customs duty on Chinese power equipment to protect domestic players and narrow trade deficit.
"If Chinese power equipment makers set up plants in India then there will no such problem," Prabhu told Xinhua on the sidelines of the exhibition.
He said, it is in China's interests to work together with India since India has great growth potential and almost no other country can grow as fast as India in the next few years.
Prabhu also identified states like Maharashtra, Gujarat and Tamil Nadu as preferential location for Chinese operations in India.
Still, Chinese companies face multi-difficulties to operate in India including the time-consuming approval of employment visas and strict restrictions on project visas for Chinese employees.
Saying India and China are strategic partners and neighbors, Prabhu call on both countries to help each other and help the world out of recession.
The three-day exhibition covers more than 4000 square meters with 152 stalls showcasing China's capability in mass production of electronics, machinery, appliance and others.
The innovative mini-sized LED TV by Foryou Multimedia Electronics Co, Ltd. drew great interests and a number of orders shortly after the opening of the fair.