India, China set $100-billion bilateral trade target

India and China agreed to bolster bilateral trade and to reduce the massive trade deficit between the two countries, it was announced on Thursday during Chinese PM Wen Jiabao's visit to India.

The two sides set a boost trade to $100 billion by 2015, up from the $60 billion currently.

They also agreed to promote greater Indian exports to China with a view to reduce India's trade deficit, according to a joint communiqué.

China is India's largest trade partner, and the bilateral trade imbalance was about $19 billion in 2010 against India.

Wen is on a 3-day official visit to India, which started on Wednesday. Both the countries are trying to enhance strategic and co-operative partnership during the visit. He is accompanied by a delegation of about 400 business leaders, the largest ever to visit India. Wen's first visit to India was in April 2005.

China also agreed to support India's participation in its trade fairs and both sides agreed to grant permission to banks of the other country to open branches and representative offices.

While the trade pacts were welcomed by the financial community, both countries left bilateral border disputes unaddressed during the first day.

While both the countries agreed to maintain peace at the border and said they are committed to disarmament and countering terrorism, no specifics were mentioned.

China also supported India's aspirations to become a permanent member of the UN Security Council. The move came as a relief as American cables released by Wikileaks had indicated that China was concerned about the revamp of the Security Council and wanted the UN to slow down on the reforms.