Chinese President Hu Jintao has arrived and is pressing
for a free trade agreement with India. But India wants
to look beyond a free trade deal, reports CNBC-TV18.
China is pressing for a free trade agreement, India
is hesitant. It believes that China subsidises its exports,
but the Commerce Minister thinks that an FTA is not
minister Kamal Nath says, "An FTA with China is
not on the cards, but we should look at it. China and
India have great synergies, but let''s not call it an
FTA. We should look at an economic cooperation agreement
which is much more than that."
trade, investment relations are scratchy. India bars
Chinese investments in sensitive areas like the North
East and in sensitive sectors like ports and telecom.
The security establishment is paranoid.
cabinet last week approved an investment promotion and
protection agreement with China that will be signed
during President Hu''s visit. The government is looking
at a way of addressing security concerns without raising
Nath, "The question is how transparently it is
implemented. How does it meet its ends. Do we need a
law for it or can it be done without a law. All these
aspects are being looked into."
while the Chinese will frown on Indian hospitality to
can also legitimately ask: ''why is it that only $3 million
of Chinese investment has found India hospitable, when
$262 million has been approved over the last 10 years?''