Land acquisition is a “major impediment” forbusinesses to invest in India, Chinese ambassador to India Le Yucheng said today while expressing hope that the government will get the Land Acquisition Bill passed to attract investment.
“We certainly need more land to set up more factories. The problem is land acquisition. It is the major impediment. When local people come to know that a large factory or industrial park is being set up and they will be displaced, they ask for more compensation. So, the land price goes higher than expected leading to more problem,” Yucheng told PTI on the sidelines of a FICCI event here.
“We are looking forward to an expeditious land acquisition process. Investment needs land, the industrial parks also need land, railways, highways also need land. We hope that Indian government will get the Bill passed and facilitate land acquisition for investments,” he said.
Trade deficit between India and China increased about 34 per cent to $48.43 billion in 2014-15 from $36.21 billion in the previous fiscal.
“The fundamental way to address the trade imbalance is to increase Chinese investments, set up factories here for products that were previously imported from China.
“Certainly, we will grant more access to Indian products like pharma, IT and agriculture,” he added.
On the status of industrial parks being set up by China in Vadodara (Gujarat) and Pune (Maharashtra), Yucheng said, “For these two parks 20 to 30 per cent of land acquisition is complete and initial investment of $100 million is being put in these parks.”
China is setting up two industrial parks in India, in Maharashtra and Gujarat, at an investment of $6.8 billion (Rs 40,800 crore). India and China had earlier signed agreements in this regard.
On China’s expectations from the New Development Bank, Yucheng said, “We expect that bank will play a very important role in providing financial support for projects in Asian countries and BRICS countries and emerging markets.
“We have adopted a new role different from World Bank, from IMF. Hence we will forge a new financial order different from those advocated by Western countries. It is a very important milestone event and it will change the world order”.
Last month, eminent banker KV Kamath was appointed as head of the $50-billion New Development Bank being set up by the five emerging economies of the BRICS grouping.
“I am looking forward to a greater role played by the Indian government in supporting the Bank. I am sure the first President of the bank will get full support from China and other BRICS countries,” Yucheng said.