Modi's visit to China creates a buzz

On a goodwill visit to China, Gujarat Chief Minister Narendra Modi on Wednesday made a strong pitch for Chinese investments, asserting that his state, which is the 'growth engine' of India with the best infrastructure, offers excellent returns for foreign investments.

Modi attracted more than 150 Chinese businessmen and corporate bigwigs at a five-star hotel in Beijing. He pitched for Gujarat as the ideal investment destination while Chinese businessmen heard him with rapt attention. Modi is on a five-day visit to China on an invitation from the Communist Party of China.

During this trip, he will also visit the booming urban centres of Chengdu and Shanghai. The business seminar, one of the largest events for the Indian guest, was jointly organised by the Indian Embassy along with the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCM).

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Modi managed to finalise a memoranda of understanding worth about $500 million, with many companies dealing in electronics, power and other sectors.

The highlight of the event was the investment in Gujarat by Chinese energy company TBEA that was announced last week in New Delhi. Modi's government has been discreetly facilitating Chinese investment in a businesslike manner.

In Mundra, Kutch, a Chinese colony was set up in an exclusive zone where Chinese labours and engineers worked towards setting up a power project. Gujarat is also offering Chinese investors prime land along the industrial corridor in south Gujarat to set up manufacturing units.

Modi, who is on his fourth visit here, struck an emotional chord while addressing a well-attended China-India business get-together, stating that he found "abundant love and affection" during his trips to China, whose people have a special place in his heart.

"China and its people have a special place in my heart. I admire their hard working, disciplined and resilient nature and above all, their sense of history. Our cultural bonds are very strong and deep-rooted. Over the years, our relations have further strengthened. We are committed to making them still better, fruitful and productive," Modi said.

"I have seen growing interest among Chinese companies to work in Gujarat. We wholeheartedly welcome them. My personal visit is to reinforce that process," he said.

Modi also announced plans to open a Mandarin school to promote learning of Chinese language in Gujarat.

"To give a big boost to the economic interaction, we must emphasise on cultural exchange. I am keen to start a Mandarin language school. We also have a number of Buddhist places which can be the driver of cultural exchange. You may be happy to know that Gujarat has already emerged as a great tourist destination in the Asian region," he said.

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According to an Indian delegate at the event in Beijing, "Chinese leaders came to hear him because they are keen to start manufacturing units in Gujarat."

While talking over the phone, he said, "As China is developing its labour costs are rising. The cost of running the business, thus, is becoming more expensive. There are many Chinese businesses who would like to acquire competitive advantage, which Gujarat offers."

Coinciding with his visit, official figures released on Wednesday said the Chinese investments abroad have gone up by $67.8 billion this year, registering a 21.7 per cent increase compared to 2009.

Though China-India trade touched about $62 billion last year, Chinese investments in India amounted to only a few hundred million dollars.

India is currently wooing China to get a large share of billions of dollars of infrastructure projects coming up all over the country.

Modi, in his speech, said while "India has emerged" is the buzz word all around the world, China's emergence is already an established fact.

India and China are set to play a major role in global politics. "Already, it is being seen that during the time of Global recession, both India and China have given strength to the world economy," he said.

He said the "demographic clock of history" is in favour of both countries which have a billion-plus population each.

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Earlier this year, Bihar Chief Minsiter Nitish Kumar too had visited China to seek investment and collaboration in agro industries.

A few months ago, Chinese Ambassador Zhang Yan had met Modi in Gandhinagar. China was expecting Modi next year but since 2012 is the year of the Assembly elections in Gujarat, Modi expressed his inability to accept the invitation.

"I have also been saying that it is the age of the power of the youth. These two countries have the youth power. India and China are both very ancient civilisations. But, more than ever before, the demographic clock of history is in their favour. We in India, firmly believe that our youth power will make our country emerge as a strong force not only in economic terms but in all the aspects of human life," Modi said.

While population is strength, "inclusiveness of our people with our fast growth is our biggest challenge. Whatever India and China do, affects one third of the humanity.

Therefore, our responsibility gets enhanced. We in Gujarat understand it fully. We are working hard for 'Gujarat's growth to ensure India's growth'. We are committed to contributing immensely to India's faster growth," he said.

At the same time, Modi said, Gujarat represents "a very different model of growth."

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Within India, "Gujarat is considered to be the Growth Engine. Among other things, it contributes to 30 per cent of India's stock market capitalisation," he said.

"However, to my mind, the bigger success is that Gujarat has an amazing mix of the big and small; robust and inclusive; fast and sustainable. It has done wonderfully well on both the macro and the micro indicators," he aid.

"Our growth rate of GDP has been in double digits for a decade. At the same time, the per capita income of the people has also grown at the fastest rate of 13.8 per cent," he said.

"Not only multinationals and big companies have done well, but a large number of SMEs have also prospered. Not only the industry has grown at 13 per cent but agriculture has also grown at more than 10 per cent," he said

He said Gujarat has already emerged as a global player in products like pharmaceuticals, chemicals and engineering.

"However, we have to do still better. Therefore, we are making a paradigm shift in our strategy for Development. Our dream is a Gujarat which is a globally preferred place to live in and to do business," he said.

On his government's initiative to form Special Investment Regions (SIRs), he said they will be developed as "Global Hubs of economic activity supported by world class infrastructure, civic amenities and exemplary policy framework."

The development of these SIRs is in line with the development of the Delhi-Mumbai Industrial Corridor.

Recently, when Chinese Vice Minister Ai Ping visited Gujarat he officially extended the invitation to Modi to visit China.

Before leaving on this ambitious tour, Modi had said he would seek investment in telecom through Chinese telecom giant Huawei.

Further, he also wants China to invest in the tourism sector in Gujarat, and help in developing the Buddha circuit.

Gujarat is also seeking investment in fields like manufacturing, automobile engineering, port development, information and communication technology.

Additional inputs: PTI