India and China Sign Development Agreement on Industrial Parks

July 1, 2014 Posted by India Briefing Reading Time: 3 minutes

Upon the completion of Indian Vice-President Mohammad Hamid Ansari’s five-day visit to China, the two countries signed three Memorandums of Understanding (MoUs) yesterday. The MoUs include mutual agreements on the development of joint industrial parks, sharing of hydrological data for the Brahmaputra River, as well as exchanges of their respective administrative academies.

The first MoU is designed to set up incentives and frameworks to attract foreign direct investment from China to Indian industrial parks and zones. The MoU states that an Industrial Park Cooperation Working Group, consisting of an equal number of Chinese and Indian members, will work toward finalizing details and consolidating mutual cooperation in promoting India’s industrial parks.

“The China-India trade space is an exciting area to be in right now and these new developments further strengthen the long-term view that China and India now see themselves as strategic partners. These are welcome developments and encouraging for the renewed mutual interest in improving bilateral trade and relations,” commented Chris Devonshire-Ellis of Dezan Shira & Associates.

The two countries also signed an agreement in regards to flooding of the Brahmaputra River, whose water source begins in Tibet. Under this MoU, China will provide an additional 15 days of hydrological data on the Brahmaputra River to India, from May 15 to October 15. This data will be used by Indian officials to better forecast and manage floods of the river in India territories. In return, India will continue financing the maintenance of three hydrological centers in China.

The third MoU is intended for creating an experience-sharing platform for administrative officials from both countries. Under this agreement, the Lal Bahadur Shastri National Academy of Administration and the China Executive Leadership Academy in Pudong will work together to host training programs and field visits to each another’s country.

The MoUs were signed by Ansari and Li Yuanchao, Vice-President and Member of the Politburo in China.

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email asia@dezshira.com or visit www.dezshira.com.

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