The neighbors with the two largest populations of any countries in the world have been increasing trade substantially over the last several years, and as a result have come together to find common ground on a number of issues, including health, economic planning, culture and health, among others.
All of this is being done to build a stronger foundation to base future ties and interaction on.
One major agreement was the expanding of a trade target which the two countries have already reached two years ahead of time. They had a goal of attaining $40 billion in trade by 2010, and are set to surpass that quickly, as they're already at the $37 billion mark. The past goal of reaching $20 billion by 2008 was reached in 2006, showing the growing trade between them.
The two countries agreed to increase the two-way target to $60 billion by 2010, something should should easily reach if they continue on the same trend as the recent past.
An underlying problem that China has with a number of countries concerning the trade deficit was also part of these talks, as it has grown to over $9 billion in China's favor last year, and could rise to $12 billion by the end of the year.
One of the solutions offered was for China to give India greater access to its markets, although India also conceded they need to increase exports as well.
China responded with offers to send more buyers to India, especially to increase the produce exports of India.
Some of the sectors India was also interested in having more access to was pharmaceutical, auto industry, entertainment and aviation.
Prospects for a free trade agreement between the countries look like will be more of a gradual process than something done in the immediate future.
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