The Chinese president who arrives to India on 17th of September has announced china will invest 100 billion dollars over the next 5 years in India according to Times of India. Liu Youfa, China's consul-general in Mumbai, told TOI, "On a conservative estimate, I can say that we will commit investments of over $100 billion or thrice the investments committed by Japan during our President Xi Jinping's visit next week. These will be made in setting up of industrial parks, modernization of railways, highways, ports, power generation, distribution and transmission, automobiles, manufacturing, food processing and textile industries."
China initially will invest about 7 billion dollars in industrial parks in Pune and Gandhinagar and Council General Liu who also said "The Pune industrial park — spread across 5 square kilometres with an investment of $5 billion — will be for automobiles that will employ one lakh people and manufacture 1.5 lakh specialty vehicles. The Gujarat industrial park will be for manufacturing power equipment. China is also working on setting up an industrial park in Tamil Nadu for the textile sector and another one for the food processing sector."
But the most important of all the investment will be in the Indian railways, which needs a lot of money to modernize and also China is looking to seal the deal for the hi-speed Bullet trains. This must send clear message all over the world that the Indian economy is open for business and if anyone misses out, will lose a very good opportunity.
It is quite obvious that the Indian Prime Ministers visit to Japan has spurred this massive reaction from the Chinese. Later this month Mr. Modi will also visit America where he will meet business leaders and the key meeting with President Barack Obama who wants India to open its door in various other sectors like energy, insurance and defense which are politically sensitive. The outcome of the meeting between PM Modi and President Xi will give India ample elbow space to negotiate with America.
Already before Mr. Modi’s visit to America Mark Warner a top senator and co-chair of the bipartisan Senate India Caucus in United States Congress has said "I am pleased to see US and Indian leadership work together to make progress on concrete deliverables during these first 100 days." He further added "By demonstrating that we can move beyond talk and actually get things done, we can provide new energy and important momentum to set the stage for Prime Minister Modi's visit to the US later this month."
Also Pakistan will be closely monitoring the developments that will take place between India and China since it is its closest ally in Asia and calls China it’s all weather friend but it is hardly a country were Chinese businesses would like to go and invest, as the environment is not safe.