Montek says closer economic cooperation can mutually benefit India, China over next 20 years

Beijing, Apr 10 (ANI): Vice Chairman of India's Planning Commission, Montek Singh Ahluwalia, has called for closer economic cooperation between India and China for mutual benefit over the next 20 years.

"Traditionally, probably both of us have seen industrialized countries as the world's growth pools and looked at how to deepen relations with the industrialized world," the China Daily quoted Ahluwalia as saying, during the Boao Forum for Asia Annual Conference 2012.

He emphasized that in the coming 20 years, industrialized nations "will be very important sources of technology" but GDP growth will almost certainly come from emerging markets like China and India.

He termed the emerging economies of both the countries as the 'world's engine'.

Ahluwalia explained that given the world economic outlook for the next three to five years, it's not surprising that China and India will grow more slowly, but the actual expansion rates don't matter so much as long as both countries contribute to world growth.

"China is ahead of India in many dimensions. We look at what's happening in China with interest because we have many similar problems," he said, adding further that maybe what China is doing now, India will be doing in five years.

Keeping in mind, China's huge market for India's flourishing software industry, Montek said he has requested Tata Consultancy Services, to send him a note comparing projects and economic conditions of both the countries.

The Planning Commission Chairman also pointed out that both economies being increasingly market-led, it is difficult to specify what area India wants to engage with China. Instead, he said, that it's important to look at the Indian and Chinese markets to see what's needed.

Bilateral trade rose 19.7 percent last year to $73.9 billion, according to reports by the General Administration of Customs. The two countries are predicted to set a $100 billion bilateral trade target by 2015. (ANI)