China and India held their 8th high-level financial and economic dialogue in Beijing on Friday to strengthen trade and economic cooperation. Both the nations underlined the need of building more solidarity to adopt responsible macro economic policies. The dialogue comes ahead of the upcoming G20 summit next month.
Secretary Economic Affairs, Shaktikanta Das accompanied by a delegation of officials from the RBI and Finance Ministry took part in the annual Dialogue along with the Chinese delegation led by Vice Minister for Finance Shi Yaobin.
“India is working hard to unify the domestic market, improve infrastructure, speed up manufacturing sector development, encourage more Foreign Direct Investment (FDI),” Shi said in his opening remarks at the meeting.
“We are happy to hear that in early August India’s GST (Goods and Services Tax) reform has achieved historical breakthrough. In such kind of background we need to learn more from each other to coordinate micro economic policies, face more challenges and create more drivers for our development,” he added.
The dialogue mechanism is aimed at exchanging ideas and status reports on the macro economic situation in both the countries in which officials of both the countries brief each other about their economic and fiscal policies and discuss issues of structural reforms and bilateral investment flows and economic cooperation.
In his address, Das said, “Bilateral relations between India and China have witnessed all round progress in recent years…This is a significant development and demonstrates the priority being attached by the two countries to our bilateral economic relations….The annual dialogue is an important forum that enables us to revisit the entire range of bilateral relations and strengthen various areas of economic cooperation.
India looks to highlight steps for further cooperation between the two countries with regard to trade, investment flows besides structural reforms and cooperation between the countries in multilateral forums like G20 and BRICS.
Das also said India is happy to note that China, which holds the Presidency of the G20 has given greater focus on inclusiveness in the G20 summit agenda.
“Very rightly and timely manner the Chinese Presidency is also giving importance to new industrial revolution on innovation as main drivers of economic growth in the current century,” he said.
“May I reiterate we in India attach high priority to the bilateral relations with China. We are confident to strength modalities of cooperation in major facets of economic and bilateral relationship,” Das added.
China too agreed to stepping up economic relations with a fast-developing India.
“So as two important emerging economies, China and India need to build more solidarity, air common voice, urge developed countries to adopt more responsible macro economic policies and lay foundation and enabling environment for global economic recovery…Our combined population is over 40 per cent of global population. In 2015 total GDP of the two countries occupy 18.5 per cent of the global GDP. We are enjoying great market and development potential however by the end of 2015 our bilateral trade reached only USD 71.62 billion and China’s investment in India is about USD 4.07 billion,” said China’s Shi Yaobin.
(With inputs from PTI)