India and China Deepen Economic Ties

Courtesy of Press Information BureauChairman of National Development and Reform Commission of China, Zhang Ping being received by the deputy chairman, Planning Commission, Montek Singh Ahluwalia, at the Second India-China Strategic Economic Dialogue, in New Delhi on Monday.

While India and China continue to disagree over their shared border, and the role of both countries in the South China Sea, on the economic front, the two countries are making strides.

On Monday afternoon , during a “strategic dialogue” held in New Delhi, representatives of the two countries signed seven economic cooperation agreements worth $5.2 billion, their second such dialogue in as many years.

The countries agreed to cooperate in renewable energy, information technology, steel manufacturing and electric transmission lines. The delegations also signed four memorandums of understanding related to energy efficiency, railroads, information technology and their intent to conducting joint studies on “issues of mutual interest.”

The Indian delegation was headed by Montek Singh Ahluwalia, deputy chairman of India's Planning Commission, while China's delegation was headed by Zhang Ping, the chairman of the National Development and Reform Commission of China. The Chinese delegation visiting India had 180 delegates, including officials and business executives.

“The economic growth of India and China is a critical eleme nt of the transformation of the global order that is under way,” Mr. Ahluwalia said Monday. “Our ability to influence global decision making will be stronger if we work together.” India can “certainly benefit by studying the Chinese experience in the building of infrastructure and handling of urbanization,” Mr. Ahluwalia added.

Trade between the two countries has grown significantly in the past decade and a half, from less than $3 billion in 2000 to $74 billion last year. Chinese companies supply electronic hardware, white goods, construction machinery and power transmission equipment to India, while Indian companies supply tractors, engineering equipment and information technology education to China.

The two sides also announced several broad mutual goals on Monday: to increase their cooperation at the global level, strengthen communication on macroeconomic policies, deepen and expand trade and investment and expand cooperation in the financial and inf rastructure sectors.

Specific project agreements signed Monday include a $3 billion renewable energy project between Reliance Power and Guangdong Mingyang Wind Power Industry and an $800 million deal between India's National Institute of Information Technology and the province of Hainan for setting up an information technology park in Hainan.

In the future, the two countries plan to cooperate on high-speed rail, transportation of freight and passenger train station development, and developing common standards for digital television and mobile communication.

The first round of strategic economic dialogue took place in Beijing in September 2011. The third India China strategic economic dialogue will take place in China in 2013.