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Day one: Gujarat gains from Chinese president Xi Jinping's visit, but has India?

$6.8 billion industrial parks, sister cities, railway projects in the offing as Modi, Xi hit it off

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If the body language of the leaders of two of the world’s fastest-growing economies was any indication, and the slight breeze blowing across the Sabarmati river could cool down historical tensions,Wednesday could mark the beginning of a new relationship between India and China.

Chinese president Xi Jinping and First Lady Peng Liyuan, who started their three-day India visit from Ahmedabad, were welcomed by Prime Minister Narendra Modi at Hotel Hyatt.

The prime minister and president then held talks during which they are believed to have discussed ancient ties between India and China, the importance of Indo-­China relations and further strengthening of ties.

After the brief meeting, the two leaders witnessed signing of three MoUs between China and Gujarat. The first MoU was about establishing ‘Sister Province’ relations between Guangdong and Gujarat. The second MoU was on the same lines between cities of Guangzhou and Ahmedabad.

The third MoU was signed between Industrial Extension Bureau and China Development Bank for facilitating Chinese investments in Gujarat.

According to a Reuters tweet, the signing of a $6.8billion deal for setting up industrial parks will also take place.

Xi is also expected to announce investment in Indian railways, including Modi’s pet bullet train project. “Ahmedabad has witnessed a historical event in the presence of Chinese president Xi Jinping and prime minister Narendra Modi. We hope this will be a new beginning of relations between India and China and China and Gujarat,” DJ Pandian, additional chief secretary of industries department, told mediapersons.

In the 14 years through June, China was India’s 28th largest source of foreign direct investment with inflows worth $411 million, or 0.18 percent of the total, government datashow.

Tensions have simmered in the past few years over claims to disputed territory along the Arunachal Pradesh and Kashmir borders. In campaign speeches earlier this year, Modi warned China to drop its “mindset of expansion.”

India accuses China of occupying 38,000 square kilometers (15,000 square miles) in Jammu and Kashmir, while Beijing lays claim to 90,000 sq km of land in Arunachal Pradesh.

“Regarding the border issue, the Chinese stance has always been consistent and clear,” Chinese foreign ministry spokesman Hong Lei said in a briefing in Beijing yesterday. “The Sino­ Indian borders have been peaceful for a long while and the border issue hasn’t affected the development of the Sino­Indian relations. We hope both countries can keep it up to maintain this healthy momentum.”

China also warned that it would oppose any Indian agreements with Vietnam to explore for oil and gas in disputed areas of the South China Sea. India will discuss “all substantive issues of interests” including the border dispute, foreign ministry spokesman Syed Akbaruddin said.

Late in the evening, the action moved to Sabarmati Ashram where the prime minister showed the Chinese president around. In fact, Jinping was dressed in an off -white khadi jacket, which was presented to him earlier by the PM. 

The two leaders spent a few minutes at Hriday Kunj in the Ashram. The Chinese president also tried his hand at the charkha. From Sabarmati Ashram, the Chinese president and Modi went to Sabarmati Riverfront, one of the pet projects of Modi when he was chief minister. Dhols played and artists danced on garba tunes to welcome the guests. The two leaders took a small walk at the riverfront and sat on a jhoola for a few moments.

The president and First Lady also sat on a traditional cot before joining the PM for a 100­dish ethnic Gujarati cuisine dinner. Jinping left for Delhi soon after the dinner.

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