Chinese firms mull joint ventures in India (With image)

New Delhi, April 13 (IANS) Many Chinese firms are in talks with Indian companies, mostly in sectors like food processing, alternative energy, auto components and machinery tools, to form joint ventures and expand their businesses.

"Several Chinese and Indian companies are holding talks. They are keen to forge business collaborations to expand in each other's market," said Mohammed Saqib, secretary general of India China Economic and Cultural Council, a non-profit organisation.

A 30-member business delegation from China is visiting New Delhi to explore business opportunities.

The India China Economic and Cultural Council, in cooperation with the China Council for Promotion of International Trade, arranged meetings to facilitate partnerships and collaborations between companies of the two countries.

Nearly 80 Indian companies participated in the business-to-business meeting and some of them were in the process of signing joint venture agreements, said Saqib.

"There is a lot of interests among the Chinese firms to come and invest in India. However, at the same time there is a lack of trust. People see everything with suspicion," Saqib told IANS.

He said the council was trying to address these issues and bridge the trust deficit.

The Chinese delegation comprised representatives of companies from various sectors such as solar energy, textiles, home furnishing products, hydro and thermal power equipments, agriculture equipments, food and beverages, pharmaceutical and healthcare among others.

Saqib said entrepreneurs from India and China see huge opportunities of cooperation in these sectors.

He said trade between India and China was expected to reach $100 billion by 2015 from around $75 billion last year. China is India's largest trading partner.

Yet, there is a huge potential for increasing trade and investment between the two countries as several areas of possible economic cooperation are still largely untapped, Saqib said.

The Council organised a seminar to highlight the unexplored areas of trade and investment in both the countries.

Hong Shi, deputy director of the China Council for Promotion of International Trade, highlighted the opportunities available for Indian companies in Shenzhen province.

In fact, the India China Economic and Cultural Council last year opened an office in Shenzhen province during the visit of Gujarat Chief Minister Narendra Modi.

Peng Gang, economic counselor at Chinese embassy in India, said the governments of both the countries were keen to facilitate more trade and investments.

Peng hoped that 2012 being declared India-China friendship year would give a new push to economic engagements between the two countries.