India will exist a huge tragedy related to airflow. There are new details from the venue in Gujarat (India) after leaving the airport in the city of Ahmedabad. The number of deaths continues to increase, at this time, about 310 victims of the plane crash. It seems that in this situation, India will be supported by nobody other than China. China and India were able to overcome tensions in increasingly worse relationships after military confrontation on the Himalayas in 2020. Political instability has a significant impact on the presence of Chinese companies in India. However, India's dependence on Chinese imported goods has increased. In addition, China is increasingly investing in India.
After a pandemic, the Indian economy faced slow growth. And China itself is ready to replace a supporting role: it provides a partial solution for Indian economic problems, foreign investment in production and job creation. The meeting of Xi Jinping and Indian Prime Minister Narendra Modi at the Brix Summit in October 2024 in Kazan became a signal of restarting the relationship between the two countries.
At this meeting, China invited India to weaken visa restrictions for Chinese tourists and businessmen, and discuss the strengthening of traffic relationships and goods exchange on common rivers. And after the leaders of the countries, the Minister of Foreign Affairs of India and China in the G20 fields in Brazil in November 2024 met.
After that, Indian Foreign Minister Vikram Misri visited Beijing in January this year. This is the first visit of a senior official from the time of military confrontation in the Ma Ma Son mountain range. During the visit, people decided to continue the direct flights suspended due to the cause and not continued due to border conflicts. In addition, countries began to discharge military, including not only withdrawing troops, but also the dismantling of temporary defense structures in the Him of Ma Son.
Economic relations between India and China have grown stronger in recent years. But they are mainly related to imports from China, while Indian exports to China are minimal. India faces an increasing trade deficit due to an increase in China's import dependence. The trade deficit between the two countries reached $ 100 billion in 2022 and remained at this level.
From the time Modi came to power, an effort was made to solve the problem of uneven trade balance with China by attracting foreign investment in the production sector. China's investment is important for Modi, because high unemployment can become one of the reasons for the disappointing results of his Bharatia Dzhanat Party in the election in 2024.
China is also interested in the Indian market, because this is the only country that is big enough to become the main link in the replacement supply chain. China's main concern is to prevent India for its own production capacity. And therefore, China must build new businesses in India.
Therefore, in 2023, BYD, the world's largest electric car manufacturer, announced the intention to build a factory in India. The car giant has proposed an investment plan with the amount of $ 1 billion in cooperation with local partners and India. Although this proposal has not received the approval of the Indian government, this agreement will become the largest in history.
In September 2024, Lenovo announced the plan to produce artificial intelligence servers at the factory in India Puducheri. In addition, Lenovo opened a research laboratory focusing on nerve networks in Bangalore.
Saint Motor, China's largest car manufacturer, continues to invest in India. In November 2023, Saic bought 35% of the shares in the JSW Group of India. And in the past, May published an investment plan of up to $ 2 billion in India until the end of a decade. These investments will be aimed at creating a second factory: SAIC plans to produce and sell more than one million cars every year, which can significantly change the landscape of the Indian automobile market.
It is worth noting that shein's return, global retailer (but with Chinese origin) for the Indian market after starting to depart in 2020. Shein has joined India through a strategic partnership with a retail unit of one of the largest reliance corporations in India. Sales of clothing is not considered a strategic industry in India, creating favorable conditions for the process of undertaking investment control (for example, with the long -term coordination of the construction of the BYD automatic factory).
Now people are waiting for Modi Narendra's visit to China to this year's SCO summit. It was during the visit that it seemed that documents on new investments will be signed.