Ahead of his visit to the US next month, Prime Minister Manmohan Singh on Monday said New Delhi needed to further strengthen economic ties with Washington.
Addressing the first meeting of the trade and economic relations committee here, Singh said India must devise a long-term strategy for economic interaction with the world, with a special focus on relations with its neighbours and major economic partners.
"China's economic engagement with the US is ten times than that of India," Singh said hinting at the vast trade and investment potential that needed to be tapped in that country.
Singh asked the relations committee to work out a blueprint to deal with the challenges and opportunities that came with globalisation.
"Economic relations have come to increasingly influence strategic engagement. India's economic interaction with the world is still relatively limited and this must increase," said Singh.
Singh also called for greater inter-ministerial dialogue and coordination in this regard.
The TERC discussed issues pertaining to Indo-US economic relations in preparation for Singh's visit to the US.
Deputy Chairman of Planning Commission Montek Singh Ahluwalia made a presentation to the committee on his recent visit to the US and on Indo-US ties. Ahluwalia also discussed the Indo-US energy dialogue at the meeting.
The government had constituted the economic relations committee to function as an institutional mechanism for evolving policies on bilateral economic ties.
The committee may commission specialised studies, suggest mechanisms for promoting economic cooperation and the scope and extent of economic engagement with identified countries.
The committee is chaired by the Prime Minister and its members include External Affairs Minister K Natwar Singh, Finance Minister P Chidambaram, Commerce and Industry Minister Kamal Nath and Ahluwalia.
Chairman of the Prime Minister's economic advisory council C Rangarajan, Chairman of the National Manufacturing Competitiveness Council V Krishnamurthy and National Security Advisor MK Narayanan are also members of the committee.
