New Delhi, May 26 (Calcutta Tube) In another sign of India’s growing ties with China, the cabinet Wednesday approved a proposal for creating an economic wing to be headed by a minister (economic) in its embassy in Beijing.
The economic wing ‘is expected to substantially support and enhance the negotiating capability of India and strengthen the institutional capabilities of our mission to enable enhanced cooperation with China so that the complementary strengths of the two economies can be exploited for mutual benefit’, an official statement said after a cabinet meeting chaired by Prime Minister Manmohan Singh.
The economic wing will deal with matters relating to macro-economic coordination and G-20, foreign investment, multilateral and bilateral borrowing/lending and financial sector developments in China and the Asia Pacific region, the statement said.
‘It is expected to play an effective role in promoting India-China cooperation in large infrastructure projects, and will work towards identification of new areas of cooperation in business and trade.
‘It is also expected to work towards promotion of exports of Indian goods in China as well as financial and technical collaboration between Chinese and Indian firms.’
India and China have emerged as the two fastest growing economies in the world. Coordination of efforts to facilitate trade and investment flows between the two countries will create a demand for related infrastructure and other supporting services apart from generating fresh opportunities for cooperation in a range of socio-economic services, the statement said.
‘In order to turn this potential into business opportunities for the enterprises in the two countries, it is necessary for the governments to cooperate and coordinate their efforts.
‘The strengthening of economic ties between the two countries also has to be seen in the context of emerging trends in regional economic integration. Close consultation and cooperation between India and China is crucial for more effective coordination in various multilateral fora on issues of mutual benefit and concern,’ the statement said.
President Pratibha Patil Wednesday left for a six-day trip to China.