The Indian Cabinet has approved Prime Minister Manmohan Singh to sign an investment promotion and protection agreement with China during its President Hu Jintao’s visits India later this month and is expected to widen Chinese investment prospects.
Parliamentary Affairs Minister, Priyaranjan Dasmunsi says that “The Bilateral Investment Promotion and Protection Agreement will increase the investment between China and India , and would be in force for 10 years.” Bilateral trade has been growing rapidly and is expected to reach USD 20 billion this year and the fastest in the world. Some even predict that by 2025, India and China may jointly dominate world trade in percentage terms and international companies can survive only if they trade in the Indo-China economic block.
India has similar treaties signed with Britain, Russia, Germany, South Korea, Sri Lanka, Spain, and Thailand.
