China is likely to announce billion-dollar investments in India’s rail infrastructure this week when Chinese President Xi Jinping is visiting the country.
Reuters reported that the two countries are expected to sign an agreement for China to invest in manufacturing and infrastructure projects, including new rail tracks, automated signalling for faster trains and renovated stations.
This follows the decision made by the Indian Government last month to allow foreign direct investment (FDI) in the railways to upgrade its infrastructure.
Earlier this month, Japan agreed to invest $35bn in India in various areas, including high-speed trains.
Chinese assistant foreign minister Liu Jianchao told Reuters: "India has a strong, real desire to increase its cooperation with China and other countries to perfect and develop its rail system, and has concrete cooperation ideas.
"India is considering building high-speed railways and China has a positive attitude towards this."
China is also planning for $50bn investment in additional projects, including ports, roads and rivers.
On the sidelines of the president’s visit, India has relaxed environmental restrictions on the construction of roads and military facilities along the disputed border with China in the state of Arunachal Pradesh.
The Indian Government has decided to allow FDI in various segments of the railways, including construction, operation and maintenance of suburban corridor projects, high speed trains, dedicated freight lines, rolling stock and coach manufacturing facilities, electrification and signalling.
Image: The Indian Government has relaxed FDI norms in railways. Photo: courtesy of KALX999.