Two pacts were inked in the banking sector. That included an MoU (memorandum of understanding) each between the Reserve Bank of India and Chinese Bank Regulatory Commission and EXIM Bank of India and Chinese Development Bank.
The agreements were signed after talks between Indian Prime Minister Manmohan Singh and Chinese Premier Wen Jiabao.
"There is enough space in the world for the development of both India and China and indeed enough areas for India and China to cooperate," said a joint communiqué issued by the two leaders after the delegation level talks.
Both sides agreed to establish a Strategic Economic Dialogue to enhance macro-economic policy coordination, to promote exchanges and interactions and join hands to address issues and challenges appearing in economic development and enhance economic cooperation.
According to a joint communiqué, the two leaders also agreed to take measures to "promote greater Indian exports to China with a view to reduce India's trade deficit".
These measures include support for Indian participation in China's national and regional trade fairs, advancing of trade facilitation, enhancing exchange and cooperation of pharmaceutical supervision, stronger relationships between Chinese enterprises and the Indian IT industry and speedier completion of phyto-sanitary negotiations on agro products.
Trade between the world's two fastest-growing major economies totaled $42 billion last year and is expected to reach $60 billion in the current fiscal year to March — with an estimated surplus of $20 billion in China's favor.
The two countries also vowed to expand cooperation in infrastructure, environmental protection, information technology, telecommunications, investment and finance on a priority basis to draw on each other's strengths and pursue “mutual benefit and win-win results”.
India hailed Chinese enterprises’ willingness to invest and participate in India's infrastructure development, such as in roads, railways and in the manufacturing sector.
The two sides pledged to encourage greater mutual investment and project contracting cooperation between businesses in the two countries, appropriately handle economic and trade frictions and differences and jointly oppose protectionism in all forms.
They announced an India-China CEOs Forum to deliberate on business issues and make recommendations on the expansion of trade and investment cooperation.
The two countries also agreed to grant permission to their respective banks to open branches and representative offices in India and China. Modalities will be worked out by the concerned authorities.
Wen expressed confidence that both countries would reach an "important strategic consensus" during the visit and take bilateral ties to an "even higher level".
On his part, Singh said that rapid economic growth had opened new opportunities for a long-term partnership between India and China and added that this would contribute to stability in Asia and the world.
