India, China Sign Trade Agreement

India and China reached an agreement Thursday to boost trade between the countries to $100 billion by 2015 and accelerate investment flows, the countries announced in a joint statement.

The statement came after Chinese Premier Wen Jiabao, who is currently on a three-day visit to New Delhi, held talks with Indian Prime Minister Manmohan Singh.

"There is enough space in the world for the development of both India and China and indeed enough areas for the two nations to cooperate,” the statement said.

By The Numbers: U.S.Trade with Mainland China.

The two sides also decided to set up an India-China Business Forum to facilitate greater economic cooperation.

China is India’s largest trade partner, but the trade has been heavily in China’s favor in recent years.

“The two sides agreed to take measures to promote greater Indian exports to China with a view to reducing India’s trade deficit,” it said.

Bilateral trade between the world’s two fast-growing economies stood at $51 billion in fiscal 2009-10 and according to latest official estimates, it is expected to top $60 billion in 2010-11 ending March 31.

Officials said China agreed to address India’s persistent concern over rising imbalance in trade, which increased from $1 billion in 2001-02 to $19 billion in 2009-10.

India also urged Chinese companies to invest in its various rail and highway projects that are under development.

But New Delhi has long been reluctant to open its port-terminal and telecommunication sectors to Chinese investment, citing security issues. Hong Kong-based Hutchison Port Holdings was earlier barred from bidding for container terminal projects at major Indian ports, including Mumbai.

New Delhi has had several high-level foreign visits in recent weeks, including a Nov. 6 visit from U.S. President Barack Obama and a four-day visit from French President Nicolas Sarkozy two weeks ago. Russian President Dimitry Medvedev is slated to arrive in India Dec. 21.