China will invest $20 billion in various projects in India over the next five years, under a 5-year trade and economic co-operation pact signed between the two countries, even as the two sides inked as many as 12 agreements covering various areas of mutual cooperation.
During an official visit by the Chinese President Xi Jinping to India, the Chinese side also signed an agreement for co-operation with India in railway infrastructure building.
India and China today exchanged 12 documents, including the one on the five-year economic and trade development plan.
Other agreements include one on audio visual co-production, two documents on railways, another document on drug administration and a MoU on cultural exchanges between the two countries.
A MoU on peaceful use of outer space and a twinning agreement between Shanghai and Mumbai were also signed.
''I am pleased with the agreements on two Chinese industrial parks in India and a commitment to realise about $20 billion of Chinese investments in the next five years. This opens a new chapter in our economic relations.
''We have also agreed on specific steps to enhance cooperation in upgrading India's railways sector. We will begin the process of discussions on civil nuclear energy cooperation that will bolster our broader cooperation on energy security,'' Modi said at a press conference after bilateral talks.
Modi said the Chinese President had assured him of concrete steps to correct the trade imbalance through increased market access for Indian goods and services and investments in China.
"I raised the issue of trade imbalance between the two countries. I urged President Xi to give our companies better market access and investment opportunities in China," Modi said after his bilateral talks here with the Chinese side.
"The Chinese president assured that he will take concrete steps in this regard."
India-China bilateral trade stood at $65.88 billion in 2013, with India's exports to China valued at $14.50 billion and its imports a whopping $51.37 billion.
Xi's visit coincides with a slowdown in China`s economy, which has prompted Chinese companies to look abroad for growth opportunities.
On the sidelines of the summit, IndiGo, the country's largest airline by market share, on Wednesday announced the signing of a $2.6 billion agreement with Industrial and Commercial Bank of China (ICBC) to finance more than 30 new aircraft (See: IndiGo inks deal with Chinese lender to finance 30 new planes)
Indian online retailer Snapdeal said it is negotiating investment from Chinese e-commerce giant Alibababa (Chinese e-retail giant Alibaba set to enter India via Snapdeal). All these will bring new business to Chinese investors.