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Posted on Nov 27, 09:46AM | IBNS
The 2nd India-China Strategic Economic Dialogue took place here on Monday led by Indian Planning Commission, Deputy Chairman Montek Singh Ahluwalia and Chairman, National Development and Reform Commission of China Zhang Ping.
Established during the visit of the Premier of the State Council of China Wen Jiabao in Dec 2010, the Dialogue is aimed at improving macro-economic policy coordination, promoting exchanges on economic issues and enhancing India-China economic cooperation.
The 1st Dialogue was held at Beijing in Sept 2011 where the two sides agreed to constitute five Working Groups on policy coordination, infrastructure, energy, environment protection and high-technology.
A working level delegation from China visited New Delhi in March 2012 following which the five working groups met in Beijing during Aug and Sept 2012.
During the 2nd meet the two sides discussed a wide range of topics including greater cooperation at the global level, strengthening communication on macro-economic policies, deepening and expanding trade and investment and promoting bilateral cooperation in the financial and infrastructure sectors.
The proposals and recommendations made by the five working groups were considered during the 2nd Dialogue and directions given for their future activities.
The two sides agreed that in the current global economic situation it was important to raise the level of economic engagement between India and China.
The two sides agreed on cooperation at the global level exchanging views on current global economic and developmental challenges, the two sides recognized that as major developing economies they needed to maintain close coordination and communication to pursue their common interests.
Both the sides agreed on reform of international monetary and financial systems, stabilizing the volatility in global commodity markets, working towards sustainable development and climate change goals and ensuring food and energy security.
Both sides believe that the ongoing and future cooperation on existing and upcoming issues will greatly enhance mutual trust and expand common interests.
Following detailed discussions on the global and national economic situations, the two sides agreed that development growth trends globally have weakened as a result of a number of factors since the onset of the global financial crisis.
This included weakening demand in the developed markets, the ongoing Eurozone crisis, lower business confidence, and growing inflationary trends.
The Dialogue agreed to intensify the cooperation in the financial sector by encouraging financial institutions of the two countries to set up operations in either country to support enterprises of the two countries to establish / expand commercial operations.
Both sides also agreed to carry out / support joint studies to better understand the IT/ITES markets of each country and have entered into a related MoU in this area.
The Dialogue witnessed signing of Memorandums of Understanding in the presence of the delegation leaders.
Both sides signed the Memorandum of Understanding between the Planning Commission of the Government of the Republic of India and National Development and Reform Commission of the Government of the People's Republic of China on Undertaking Joint Studies.
They signed the Memorandum of Understanding between the Bureau of Energy Efficiency, Ministry of Power, Government of the Republic of India and National Development and Reform Commission of the Government of the People's Republic of China on Enhancing Cooperation in the Field of Energy Efficiency.
Also, Memorandum of Understanding between the Ministry of Railways of the Government of the Republic of India and Ministry of Railways of the Government of the People's Republic of China on enhancing technical cooperation in the railway sector.
Lastly, Memorandum of Understanding between the National Association of Software and Services Companies (NASSCOM), India and the China Software Industry Association (CSIA) on Enhancing Cooperation in the IT/ITES Sector.
The two sides agreed that the 3rd India-China Strategic Economic Dialogue will be convened in China in 2013.
They also agreed that prior to the 3rd Dialogue, the Working Groups would meet to implement the consensus and decisions agreed to by the two sides at the 2nd Strategic Economic Dialogue.