What can we expect from Xi?

September 17, 2014 15:17

Officials said the Chinese decision for investment of $100 billion came very recently and because the government of Japan promised to put in $35 billion or 3.5 trillion yen into infrastructure for the same period.

Whether this will help address the trade deficit remains a question. This investment will largely be made in India's infrastructure and manufacturing sectors through the establishment of two industrial parks, in Gujarat and Maharashtra.

While investment is not directly linked to the trade deficit, it could help if manufacturing in India leads to substitution of imports from China.

Pic: Xi Jinping with Anandiben Patel and governor OP Kohli

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