Prime Minister Narendra Modi with Chinese President Xi Jinping (Reuters)
After the signing of three pacts during the visit of Chinese President Xi Jinping in Ahmedabad, the Gujarat government hopes that trade ties between the state and China will get a shot in arm.
"Chinese companies have invested Rs 700 crore in the state so far, but with the signing of this pact to establish industrial parks in the state, we believe that their investment will increase," Additional Chief Secretary Industry D J Pandian said.
"The Chinese have shown interest in establishing three to four industrial parks here. One has been finalised near Karjan in Vadodara in Gujarat," Mr Pandian said, giving details of MoUs signed between the China Development Bank (CDB) and iNDEXTb (Industrial Extension Bureau).
Chinese investors plan to set up manufacturing units in electrical, electronics, plastic as well as other sectors in these industrial parks and CDB would help Chinese companies set up units here by funding their projects as very nominal rates, Mr Pandian said.
"This will help promote domestic industry, as local companies will have the opportunity to become suppliers to Chinese manufacturing units. It will also encourage adoption of new technology by local firms and reduce imports," Mr Pandian added.
However, the official said that at this time, it is not possible to estimate the figure of likely Chinese investment in Gujarat.