India and China on Monday agreed for early settlement of differences on border perceptions, expand cooperation on trans-border rivers and increase bilateral trade.
The two countries signed eight pacts including an MOU on sharing of information on water flow in river Brahmaputra.
This followed the delegation-level talks between the visiting Chinese Premier Li Keqiang and his Indian counterpart Dr Manmohan Singh in New Delhi Monday afternoon.
The other pacts are in areas of trade, commerce, agriculture, education, literature, enhancing people to people contacts and providing facilities for Kailash Mansarovar yatris who travel to Tibet.
In his press statement, Dr Singh said that the Special Representatives of both the countries will meet soon to seek a mutually beneficial settlement of border issue.
He said peace and tranquility on the borders are the basis for expansion of ties between New Delhi and Beijing. Stating that economic cooperation constitutes an important part of the bilateral relationship, Dr Singh said the growth potential of the two economies can provide the engine for greater cooperation.
The Prime Minister sought greater market access for Indian products in China.
Chinese Premier, in his media interaction, said that he shared the hydrological information with India and the two neighbours are ready to set up communication with regard to water projects. He stressed that both sides have more common interests than differences.
Briefing newsmen on the delegation level talks between the two sides, Indian Ambassador to China, S. Jayshanker said, the two countries have already exchanged draft proposals of Border cooperation agreement for early settlement.
The special representative of both countries will be meeting soon to take the process forward. Mr. Jayshanker said, the two countries are keen on high level exchanges to overcome differences and strengthen ties.
Defence Minister A.K Antony will also be visiting China.
Both India and China also agreed to enhance cooperation in maritime security and also agreed to hold the joint military exercises later this year.
A study will also be conducted on the proposed Bangladesh, China, India, Myanmar (BCIM) trade corridor.
Earlier, Chinese premier Li Keqiang was given a ceremonial welcome by President Pranab Mukherjee.
Prime Minister Manmohan Singh also attended the function held at the forecourts of Rashtrapati Bhavan Monday morning.
Chinese Premier Li Keqiang said peace and regional stability cannot be a reality without strategic mutual trust between China and India.
He also said, the development of prosperity of the world cannot be a reality without the cooperation and simultaneous development of the world's most populous countries of the world.
Premier Li Keqiang also paid tributes to father of the nation at the Samadhi of Mahatma Gandhi at Rajghat.
India and China have agreed to take steps to realize the bilateral trade turn-over target of one hundred billion Dollars in the next two years.
A Joint Statement issued after the delegation-level meeting of the Prime Ministers of the countries, identified the areas for cooperation particularly in pharmaceuticals and Information Technology.
AIR Correspondent reports that India's exports to China were only 13.52 billion dollars in 2012-13 while the imports aggregated to over 54.3 billion dollars, leaving a trade deficit of 40.78 billion dollars.
Both the countries also agreed to promote cooperation between their financial institutions to provide funding for economic projects.
The two sides also agreed to continue to push forward the Doha Development Round negotiations.
They also decided to carry out bilateral cooperation in civil nuclear energy in tune with their international commitments.
The statement said that the two neighbours in their commitment to promote the use of clear energy believe that expansion of civil nuclear energy programme is an essential component of their national energy plans to ensure energy security.
