By IANS,
New Delhi : Planning Commission Deputy Chairman Montek Singh Ahluwalia will head a high-level team to Beijing later this month for the first India-China Strategic Economic Dialogue, agreed on in December to double bilateral trade to $100 billion by 2015.
The two will also seek ways to encourage mutual investment among businesses of the two sides, apart from divising mechanisms that can handle trade and economic frictions and differences in a manner that protects each other’s interests officials said.
The decision to establish the dialogue, on the lines similar to the one Beijing has with Washington, was taken during the talks here between Indian Prime Minister Manmohan Singh and his visiting Chinese counterpart Wen Jiabao in December last year, officials said.
“They agreed to establish a strategic economic dialogue to enhance macro-economic policy coordination, promote exchanges and join hands to address issues and challenges in the economic development and enhance cooperation,” said an official, quoting a statement.
China, the officials said, also agreed to promote greater imports from India to balance their trade deficit with steps such as support for participation of Indian teams in the Chinese trade fairs and enhancing ties in areas like drugs, IT and agro industries.
In the $60 billion worth of bilateral trade between India and China in 2010, the trade imbalance was as much as $20 billion in Beijing’s favour. It was $16 billion the year before.
India-China bilateral trade is expected to rise above $70 billion this year.
During the two-day visit starting Sep 26, Ahluwalia will hold talks with Zhang Ping, head of China’s National Development and Reform Commission, which is China’s equivalent of the Planning Commission of India.
China has been steadily increasing its business presence in India. Chinese banks have provided huge amounts of suppliers’ credit to major Indian firms including Reliance Power, Tatas and Adani Group.