Indian investment in China is much less

Indrani Bagchi / TNN / Oct 2, 2006, 03:22 IST

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Industry sources acknowledge that there is a definite need to reconfigure India to being more open to Chinese investment.

NEW DELHI: The Delhi Metro has a distinct Chinese presence. Wuhan Research Institute of Post and Telecommunication has tied up with Himachal Exicom Communications for "in-building and tunnel projects" for Delhi Metro Rail Corporation. The proposed Chennai monorail project, too, will have a significant Chinese presence.
The National Highways Authority of India (NHAI) has tied up with at least two Chinese companies China Coal Construction Group and Longjian Road and Bridge for building NH2 and even the East-West corridor.
In West Bengal, Chinese company Dongfang is working with WBPDCL on the Sagardighi thermal power project. On a thermal power project in Andheri, Mumbai, Grasim and Ultra Tech Cement are in collaboration with China National Machinery Co.
This said, industry sources acknowledge that there is a definite need to reconfigure India to being more open to Chinese investment.

There have been some fears of a Chinese retaliation to India selectively shutting its doors to Chinese companies the Hongkong-based Hutchison Port Holdings being one of them but Indian investment in China is much less, despite a larger numerical presence of Indian companies in China, the government sources pointed out.
It's mainly Indian IT companies that are competing for bids in China. For instance, a project to rebuild the Bank of China's IT infrastructure is most often mentioned as one that may be hit.
Indian companies are aggressively marketing their IT and ITES services in China's technology sector.
China is reported to be spending some $10 billion in 2006 alone, and according to software industry sources, Indian companies stand a very good chance.

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