Mumbai: The government has approved the signing of an investment protection agreement with China ahead of president Hu Jintao's visit to India. The Chinese president will arrive in India on November 20.
"The bilateral investment promotion and protection agreement will increase the investment between China and India and would be in force for 10 years", information and broadcasting minister Priyaranjan Dasmunsi told reporters after a cabinet meeting chaired by prime minister Manmohan Singh.
Expanding bilateral trade and investment is one of the major focus areas of Hu's visit. Several trade-related agreements are expected to be signed between the two of the world's fastest growing economies.
Growing mutual interests are increasingly driving Beijing and New Delhi to forge a relationship that leverages their newfound heft in global energy markets and trade forums, officials from both countries say. Trade between the two countries has also been growing rapidly and is expected to touch $20 billion this fiscal, as against $18.7 billion last year.
India has similar investment protection agreements with countries like the UK, Russia, Germany, South Korea, Sri Lanka, Spain and Thailand.