Indian and Chinese firms signed deals worth about US$22 billion in Shanghai over the weekend, in a ceremony witnessed by visiting Indian Prime Minister Narendra Modi.
The deals included a US$2.5 billion credit facility from Chinese banks to India’s top mobile operator Bharti Airtel, Financial Times reported.
China Development Bank (CDB) has granted a US$2 billion credit line to Bharti, while Industrial and Commercial Bank of China offered a US$500 million facility, it said.
As Bharti is sourcing equipment from Huawei and ZTE, the new lines of credit fall within Beijing’s existing practice of financing projects overseas that enable business for Chinese firms, FT noted.
In other deals signed during Modi’s visit to China, India’s Adani Group and China’s Golden Concord Holdings agreed to set up an integrated solar photovoltaic industrial park.
In the same sector, Welspun Energy inked a pact with China’s Trina Solar for the production of photovoltaic cells and panels.
In meetings with President Xi Jinping and other Chinese leaders last week, Modi sought to strengthen commercial ties between India and China.
China had already promised US$20 billion of infrastructure during Xi’s visit to India last year.
“We are very keen to develop the sectors where China is strong,” Modi told Indian and Chinese business executives in Shanghai. “We need your involvement.”
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