. India, China pledge to deepen eco co-operation

  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