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India and China on Monday pledged to deepen economic and commercial
ties and create environment for promoting investment to the mutual
benefit of the two nations in New Delhi during a day-long 2nd
India-China Strategic Economic Dialogue. As many 11 agreements,
entailing investment of USD 5.2 billion, were inked in New Delhi between
the two countries. With a view to promote greater economic and
commercial engagement, the two sides have agreed to improve trade and
investment environment, remove market barriers and deepen business
co-operation, said the minutes of the meeting between Planning
Commission Deputy Chairman Montek Singh Ahluwalia and China's National
Development and Reform Commission Zhang Ping. India and China also
agreed to enhance transportation links, encourage greater bilateral
investments and work towards achieving a more balanced and sustainable
bilateral trade. Ahluwalia told reporters after the meeting, "The
message that we are getting from them is that they would like to see
deepening of co-operation." He also expressed the confidence that the
dialogue will look at measures to increase investment interest and
activity through mutual co-operation. Ahluwalia said that India and
China would look at the possibility of initiating pilot projects in
different sectors such as water treatment. Commenting on the success of
the dialogue, he said, "I think from the size of Chinese business
delegation, they brought around 180 people, it is clear that there is
great deal of business interest in business collaboration from both
sides". The bilateral trade between the two countries has shot up from
USD three billion in 2000 to USD 74 billion currently. Ahluwalia told
reporters that the Chinese delegation led by Zhang met the Prime
Minister Manmohan Singh. "Both leaders want deepening of cooperation
between China and India," he added. When asked about security issues
and widening India-China trade deficit, Ahluwalia said there was no
discussion on these issues during the dialogue. On whether inking MoU
with China for cooperation in railways will discourage other investors
like Japan, he said, "This is not necessarily crowding out co-operation
with Japan. It is true that we have discussed with the Japanese for
possibility of setting up high speed rail. India will not have just one
high speed rail. It is good idea to explore all possibilities". On
discussions about market access, Ahluwalia said, "This was not trade
negotiations. Both leaderships have signalled very strongly that they
want trade to expand. We would like their help in making trade more
balanced". About government being cautious about investment by Chinese
telecom companies in India, he said, "Security issues are relevant not
just for Chinese investments. In certain areas, the country would want
to have security in infrastructure and telecom is one of them. This is
not the issue which came up for discussion. They did not raise this
issue". Ahluwalia informed that India raised the issue of after sale
service of the Chinese equipment. However, he admitted that Chinese
equipment are very competitive and their financing is also very good.
During the dialogue, he highlighted the fact that with increase in
private sector participation, overall investment in India's
infrastructure has increased from 4.8 per cent of the GDP in 2002-03 to
7.3 per cent in 2011-12. According to the minutes of the meeting, both
the sides have agreed to hold the 3rd India-China Strategic Economic
Dialogue next year in Beijing
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