Seeking to revive the old Silk Route link between the two regions, a visiting delegation from Xinjiang Uyghur Autonomous Region of China and Indian industry on Monday decided to study the feasibility of laying a natural gas pipeline across the two countries and open direct air link between Kashgar and New Delhi.

India and Xinjiang also identified four major areas of potential cooperation -- agriculture and food processing, traditional medicine and herbs, energy and oil production, and tourism.

In a CII-organised interface with Indian industry in New Delhi, XUAR Chairman Ismail Tiliwaldi highlighted the long history of friendly exchanges between India and Xinjiang region.

"Both sides agree to explore the likelihood of laying a natural gas pipeline between India and China," a CII release said.

With large reserves of oil, natural gas and coal along with granite, copper, mica and berylliun, the Xinjiang region accounts for 40 per cent of the total coal reserves and 30 per cent each of the total natural gas reserves and petroleum reserves of China, it said.

Tiliwaldi said the region has the largest growing base of cotton apart from being the second largest pasture land, thereby making it a major production base for vegetables and fruits.

It also accounts for 40 per cent of total production of fruits and has emerged the largest producer of herbs, he said.

Xinjiang region, adjoining Jammu and Kashmir, is the largest autonomous region in China in terms of area, covering one-sixth of China.