China’s foreign exchange reserves, the largest in the world, reached a record USD 3.95 trillion in March and it plans to invest around USD 500 billion overseas in the next five years, a large share of which is expected to find India’s way.
China is positively considering investing in India’s ambitious plan to build high-speed railways, including bullet trains.
Chinese officials say that China would be committing anywhere between USD 100 billion to USD 300 billion in the modernisation of Indian railways by replacing existing tracks to increase the speed, station development, establishing industrial parks as well as invest in mega infrastructure projects.
The improvement of tracks could push the average train speeds from 160 km/hr to 180 km/hr, Indian officials say.
China is also asking India to hand over certain railway corridors for it to build, develop and maintain high speed railway lines.
During Xi’s visit, China is set to announce two industrial parks, one each in Gujarat and Maharastra to begin a host of manufacturing and energy units. China is expected to commit investments worth $6.5 billion to set up industrial parks in India and sign purchase agreements of over $3 billion with Indian companies.
China has invited Maldives to actively participate in the Maritime Silk Road (MSR) project, an initiative to string together partnerships with countries in the Asia-Pacific and the Indian Ocean, including India, in the wake of the decision by the United States to bolster its military capability in the region.