India, China close to deal for Shanghai port

China’s government and China’s largest state-owned oil firm are close to signing a memorandum of understanding for the construction of a port in India, a senior official at China’s central bank said.

China and India signed a memorandum on June 8, but no details have been revealed.

The deal is expected to be signed in the coming days, the official said.

India, the world’s third-largest economy, has long been struggling with overcapacity in its ports, and a new port will be an important hub for that to change, he said.

A number of projects in India have been delayed or scrapped, while China has not yet committed to building a port.

India has been seeking to open a new container terminal for China in its southern port of Jammu and Kashmir, a project that is now set to be completed this year.

China has long said it wants to expand its trade with India.

The port would be the first to be constructed in China in a major infrastructure project.