"There is a significant complementarity between the

Indian and Chinese economies. The infrastructure deficit in India, in particular, is expected to drive Chinese exports while also attracting its investments," Jaishankar said. "It (Tianjin) is emerging as an attractive location for Indian companies in China, both in trade and services. We have always enjoyed very positive cooperation from authorities," he said. "We are at a stage when a number of Chinese companies are showing strong interest in establishing a more sustainable presence in India. On our part, the quest for improved market access in China continues. I have no doubt that our export basket will also diversify in times to come," he said. In this background, expanded banking relations between India and China are very important, he said. "We have 10 Indian banks in this country, with different levels of operations. The Reserve Bank of India and China Banking Regulatory Commission (CBRC) have already reached agreement to expedite processing of licences. "We see more interest on the part of Chinese banks in going to India. It is only when our banks are more connected that we can be said to have achieved the full spectrum relationship that is natural to neighbours," he said. SBI Managing Director Hemant G Contractor told the media on the sidelines of the function that SBI branch in Shanghai has shown around 20 per cent profitability prompting his bank to open its 51st overseas branch in Tianjin. He said Chinese Banks also wants to expand operations in India. While ICBC, which has a branch in Mumbai wants to open its second branch in New Delhi, Bank Of China has applied for permission to open branch in Mumbai. According to the licence, the Tianjin branch is permitted to operate 300 Yuan freely convertible currency. The branch is authorised to transact business within the scope of foreign exchange, including attracting savings from public, short and medium loans, trading of bonds, LC guarantee, safe deposit box service. SBI opened its representative office in Shanghai in 1997 and later upgraded it as full-fledged branch in 2006.