NEW DELHI — India on Wednesday said it was planning to invest $10.5 billion in US-Chinese projects to help improve connectivity in the South Asian country, in what will be the largest bilateral investment in US and China’s ties.
India is India’s biggest export market, and China has said it plans to open a new regional business hub in Delhi.
China is a major investor in India, and the two countries have also signed a series of deals in infrastructure and science and technology.
“We will invest $1.5 trillion in projects in our two countries in the next two years, including infrastructure and other infrastructure projects, with a target of doubling this investment by 2021,” Indian Prime Minister Narendra Modi said at a joint news conference with Chinese President Xi Jinping.
The announcement came as China’s foreign ministry said it planned to set up a $1 billion fund to help with infrastructure projects in India.
The fund will also be used to boost bilateral trade, with an aim of strengthening India’s “soft power,” the ministry said.
Modi said he was “deeply saddened” by the terrorist attacks in Mumbai in 2016 that killed nearly 200 people, which he said had “devastated” the lives of Indians.
He said he hoped India could help bring peace and stability to the country and was committed to working closely with China to strengthen ties.
He said the attacks were a “sad day for humanity,” adding that China has a long history of working with India on security issues, including combating terrorism.
Modis announcement came at the start of a two-day summit between Modi and Xi at the Great Hall of the People in Beijing, which will focus on boosting trade, infrastructure, and other bilateral issues.
China and India have long enjoyed a close economic and security relationship, with China supplying almost half of India’s oil and more than half of its natural gas.
India is Indias biggest trading partner and the second-largest exporter of liquefied natural gas, after the United States.