Indian state eyes Chinese investors

By Lu Na
0 Comment(s)Print E-mail China.org.cn, September 19, 2011
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Chinese trade mandarins joined Indian diplomats and businessmen from both countries on Friday to discuss trade opportunities in the Indian state of Madhya Pradesh at the Raffles Hotel in Beijing.

Dr. S. Jaishanka, Indian ambassador to China speaks at the forum. 

Indian Ambassador to China S. Jaishankar, Madhya Pradesh Chief Minister Shivraj Singh Chouhan and Dong Songgen, vice chairman of the China Council for Promotion of International Trade attended the forum.

Dong Songgen, vice chairman of the China Council for Promotion of International Trade, speaks at a forum on investment opportunities in Madhya Pradesh, India. 

"India and China both have long histories, and the two countries have had culture exchange since ancient China," Chouhan said. "The population of China and India accounts for 37 percent of the world, so our cooperation is not only good for the development of our two countries, but also good for world peace."

Two Chinese companies have already invested in Madhya Pradesh. Chouhan said he anticipates more will follow as firms move to take advantage of the state's expansive land and simple land leasing policy.

Companies also have access to a trade and investment window which can help them with necessary applications and answer their questions, Chouhan said.

Madhya Pradesh Chief Minister Shivraj Singh Chouhan receives an interview. 

"We will have a meeting in every week to solve these applications and questions," he said. "We welcome infrastructure field and medicine field companies to invest. Foreign investors can build sole proprietorship companies in the infrastructure field and they don't need to pay tax for ten years."

Although India has suffered from high inflation rates, Chouhan said the government is working to ensure temporary price hikes will not prove a long-term barrier to investment in the region. "Our government is trying to take actions to control it," he said. "Besides, the exchange rate from dollars to rupees is relatively stable, so I don't think it will influence foreign investment."

Respending to corruption concerns, Chouhan said the government in Madhya Pradesh has implemented a transparency policy to minimize bureaucratic red tape and increase efficiency. Under the new policy, local residents can ask the government for a service and appoint an official to fulfill his or her request, Chouhan said. If the official can't get the job done on time, he or she will be punished.

Yu Chuanfen, vice president of Guangxi-based Liugong Machinery Co., one of the two Chinese companies with operations in Madhya Pradesh, said Indian inflation makes it important local enterprises increase their products' value. As law in India is more complicated than China, enterprises should strengthen their relationship with local government and hire local legal advisers. In addition, enterprises should focus on employee training, because skilled local workers remain scarce.

Madhya Pradesh, often called the heart of India, is a state in central India. Its capital is Bhopal, and Indore is its largest city. It has abundant natural resources such as copper, phosphorite and diaspore. It is also the only state that can export diamonds in India. It has the third most expressway mileage in India and five airports. The Indore Airport can handle international freight transport.

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