India, China for renegotiating bilateral investment pact

India and China are keen to re-negotiate bilateral investment agreement with an aim to create a more stable and transparent environment to facilitate greater investment in both the countries, an official said.

The issue was discussed during the meeting of Commerce and Industry Minister Suresh Prabhu with his Chinese counterpart Zhong Shan here.

The two ministers acknowledged that significant growth in bilateral investment calls for an upgradation of bilateral investment agreement between the two countries.

"Both the sides agreed to re-negotiate the bilateral investment agreement to create a more stable, transparent and predictable legal environment to facilitate greater investments," the government official said.

India has received USD 1.78 billion foreign direct investment from China during April 2000 to December 2017.

The official added Chinese side raised certain issues with regard to investment facilitation in India.

"The commerce ministry informed the Chinese officials that they can have separate meetings with the Department of Economic Affairs on the investment treaty," the commerce ministry official said.

They also want to set up more industrial parks in the country, a move would also help narrowing the trade deficit.

Chinese firms that have presence in India include Xiaomi, Oppo and Vivo.