NEW YORK ( TheStreet) -- Chinaâ¿¿s Bank of China (3988: Hong Kong) and Industrial and Commercial Bank of China Limited, (1398: Hong Kong) and India's ICICI Bank (IBN) and IDBI Bank (IDBI: Mumbai) are likely to benefit from the $16 billion deals signed between India and China this week, aimed at enhancing bilateral trade between the two countries, including banking.
During Chinese Premier Wen Jiabao's visit to New Delhi, several Chinese companies signed deals worth $16 billion with their Indian counterparts. The deals included big names from these Asian giants: Shandong and Tamil Nadu Power signed a deal for $800 million worth of equipment; Aluminum Corporation of China (ACH) and Vedanta entered into a pact for $330 million worth metals imports; China Development Bank signed a $12-billion pact with Reliance Communications; and telecom operator Huwaei plans to invest $2 billion in a new research facility in two Indian cities. Besides these pacts, the Federation of Indian Chambers of Commerce and Industry (FICCI) has entered into a memorandum of understanding with China Chamber of Commerce for mutual cooperation.
Accompanied by a 200-strong business delegation, Jiabao said China will open up some of its sectors to Indian firms, and explore avenues to increase trade volumes between the two countries. The Indian commerce ministry said bilateral trade with China surpassed $60 billion during the past six years and was more than double the rate of the trade India does with the rest of the world. As the balance of trade lies in favor of China, India is resorting to various measures to reduce the trade deficit. India is pushing for expansion in sectors like infrastructure, pharmaceutical, bio-technology, and healthcare with China, to narrow trade deficit, which is likely to cross $24 billion in 2010.