India and China signed 26 pacts worth $22 billion during a three day visit of Indian Prime Minister Mr Narendra Modi to China. This was a historic partnership as world’s two most populated nations joined hands and it came at the time when India is growing and its economy is set to grow at peak rates.
But what these pacts mean for India? Does these pacts are beneficial for India or there are just business agreements which are meant to favor only corporations?
So below I will like to explain what these agreements actually are.
1. Pact to jointly setup Photovoltaic cell (PV) industrial park and tripartite agreement in renewable energy sector is a welcoming move for both countries as global warming is at its peak and a shift from fossil fuels energy to green renewable energy is the need of hour.
2. Pact to set up solar cell and modules manufacturing facility and to generate 5000 MW of solar energy in 5 years is another move to decrease dependence on non renewable energy.
3. Pact to allow purchase of telecom equipments from Chinese industries mainly ZTE and Huawei will boost chinese industries trade but in return Indian telecom operators will get access to modern technology for efficient services.
4. Industrial park in Kakinada SEZ (Andhra Pradesh) for Chinese equipment manufacturers as well as another Industrial park in Gujarat will increase FDI to India and also provide more jobs and better technology to India.
5. Pact to finance Mundra Power plant phase I , II and III as well as Nana Layja 4000 MW power project will boost power generation capacity of India.
6. Development and exploration of opportunities in India and Chinese film market will boost Indian bollywood film industry as bollywood is appreciated and praised in many parts of the world.
7. Pact to jointly build “China India Information Service Industry Corridor” will give Indian IT industry more access to Chinese market
Apart from the above salient points many more pacts related to steel industry, IT industry and other private entities were signed to boost the rapidly growing Indian economy as well as developed Chinese economy.
Though the pacts were signed between corporations but I believe the citizens of India will get benefits with more jobs and better technologies. The cheap goods of china is nothing new for India but if we can learn from china to manufacture these goods in India then we can also grow like china did and maybe India can become the world power in the near future. .