New Delhi: Ahead of the visit of Vice President Hamid Ansari to Beijing, the government Wednesday gave an in-principle approval for a memorandum of understanding (MoU) between India and China for setting up industrial parks in the country.
The details of the agreement will be available only after the signing of the memorandum, Law and Telecom Minister Ravi Shankar Prasad said after a meeting of the Cabinet headed by Prime Minister Narendra Modi.
"Cabinet today has approved in-principle an MoU with China with regard to establishment of industrial parks. The details and the contours of the MoU would be given once it is signed," he said.
Sources said during discussions on setting up of the industrial parks by China, sites in Uttar Pradesh, Haryana and Karnataka were identified but security concerns stalled their finalisation.
As per sources, China is interested in investing in India in sectors such as manufacturing.
On a visit to celebrate 60th year of Panchsheel, which once formed the bedrock of Sino-India ties, Vice President Hamid Ansari will begin his five-day journey to China tomorrow from the historic city of Xian.
Commerce and Industry Minister Nirmala Sitharaman will accompany the Vice-President.
Sitharaman is expected to meet her Chinese counterpart and may discuss issues such as widening bilateral trade gap and greater market access for Indian products and investment.
The trade deficit between the countries stood at about USD 40 billion presently. In 2013-14, total trade (comprising export and import) stood at USD 65.87 billion.
According to an official, China invests close to USD 100 billion annually in different parts of the world whereas in India they have invested only about USD 400 million in the last 14 years.