India and China on Monday agreed to create a $9.7 trillion infrastructure fund, in what would be the biggest infrastructure package since the financial crisis.
In the deal, China will provide up to $1 trillion of investment in infrastructure projects.
It will also help India and Pakistan set up new infrastructure projects, such as a railway, in the next five years.
The two countries have already agreed on a bilateral infrastructure fund.
India has already spent more than $2 trillion in recent years on roads, bridges and power lines.
India and China are in the middle of a massive economic boom.
The government has promised billions of dollars in public works projects and infrastructure projects to boost the country’s economy.
China has promised to provide loans to boost investment and create jobs in the country.
The deal was signed in Beijing by Chinese Premier Li Keqiang and his Indian counterpart Pranab Mukherjee.
It was the first such deal between the two countries.