China signs $16b worth of deals during Wen's India trip

Premier Wen Jiabao said the 300-strong business delegation that accompanied him to India had struck nearly 50 deals worth a total of US$16 billion, the Financial Times reported. This figure tops the US$10 billion in orders that US companies secured during President Barack Obama’s visit to India in November. Chinese financing underlies many of the deals, with China Development Bank believed to have reached arrangements with the likes of Reliance Communications (RCOM.NSE, 532712.BSE), ICICI Bank (IBN.NYSE, ICICIBANK.NSE, 532174.BSE), Essar (500630.BSE) and IDBI Bank (500116.BSE). Indian officials said a financial services pact was key to Wen’s three-day visit. While Indian banks operate in China, Chinese lenders have no real presence in India. Wen said he supported measures to boost business between financial centers like Mumbai and Shanghai, and envisaged the opening of "bank branches in each other’s countries." Trade between China and India is estimated to reach US$60 billion this year, but New Delhi is uncomfortable with the size of its trade deficit with China.