Chinese President Hu Jintao on Thursday proposed five steps, including trade liberalisation and trade expansion and diversification between India and China, to solidify mutual relationship.
"The current bilateral trade between the two countries is incompatible to their size but has scope for growth by improving trade structure and increasing technological cooperation," Jintao said while addressing the Indo-China Economic, Trade, Investment and Cooperation Summit jointly organised by the industry chambers Federation of Indian Chambers of Commerce, Confederation of Indian Industry and Association of Chambers in Mumbai.
The Chinese President also highlighted the need to increase border trade for greater cooperation.
Stressing that currently there was a good opportunity for the two fastest growing economies of the world to have a win-win relationship, the Chinese President proposed strengthening cooperation in key sectors like information technology, energy and agriculture.
"We have to give a stimulus to the growth in these sectors," he said while expressing his commitment to promote Chinese industries to better business ties in India.
"If India and China work together, the 21st Century would be the century of Asia," he said.
As a third step, Jintao said the countries should improve the environment for trade and investment.
"We should resolve problems in trade and investment to create an enabling business environment, which would provide free and favourable trading," he said.
The Chinese President also called for a greater cooperation in multilateral fields in third country. He called for greater cooperation in World Trade Organisation and synergy in jointly upholding the legitimate rights of developing countries.
Hu said Indian and Chinese energy companies should cooperate in exploring opportunities in a third country.
Stating that trade liberalisation would take Indo-China ties to new levels, the Chinese President underscored the need for a free trade agreement between the two countries.
India and China are undertaking a feasibility study, which would be completed by October 2007 and would lay the foundation of trading between the two regions.
Praising Mumbai, the financial capital of India, Hu said the city represents vigour and vitality by taking strides in urban development.
He urged Chinese businessmen to take opportunity of this Gateway to Western India to promote overall trade.
Calling China a sincere friend and partner of India, Hu expressed optimism that the countries would achieve the bilateral trade target of $40 billion by 2010.
Earlier, Union Minister for Commerce and Industries Kamal Nath said that along with growth in trade, the countries should also give stimulus to investment.
He expressed confidence that Chinese investment in India would touch $5 billion by 2010.
He said that the visit of the Chinese President has sent a loud message to the world of enhanced economic engagement between the two countries.
The bilateral trade target of $40 billion by 2010 was easily achievable.
Inputs: PTI
