The scheduled visit by Prime Minister Atal Behari Vajpayee to China later this month signified the importance India attaches to its relations with China, Deputy Chairman of the Planning Commission K.C. Pant told an interactive session on Vajpayee's visit to China and Indo-China relations, organized by Delhi Study Group.

Stating that India and China were no strangers to each other, Pant said huge markets of the two countries provide unlimited opportunities for trade, investment and rapid economic growth.

With the 21st century widely believed to be the century of Asia, India and China were strategically placed to influence the course of events in the region over the next few decades, said Pant, who is also a member of the powerful Cabinet Committee on Security.

Both countries, which experienced the exploitation of imperialist domination, were marching in a determined manner towards modernization to fulfill the aspiration of their people with an assured environment of peace as a critical facilitator for the realization of this objective, he added.

This was the reason for establishing a stable and constructive relationship between India and China based on peace and tranquility across the borders, which was in the mutual interest of both countries, he told the session.

Recalling recent developments in Indo-China relations, the deputy chairman of the Planning Commission, the chairman of which is the prime minister, expressed his hope that the process of confidence building would be carried forward during Vajpayee's one- week visit to China.

The rapid economic growth of China opened up fresh areas of complementarity, he said, adding that such economic vitality underpins bilateral economic ties and widened the spectrum of common interests of the two countries.

Economic relations between India and China have developed steadily in the last decade with the bilateral trade turnover of some US$300 million in the early 1990s increasing up to nearly US$5 billion by 2002, registering an average annual growth rate of 32 percent.

The rapid growth of India-China trade and investment over the past few years had taken place without any significant preferential trading arrangement, Pant said.

Trade and investment were not the only areas where Sino-Indian relations had witnessed an upswing, he said, adding the two sides had also held a bilateral dialogue on security issues since 2000.

Cooperation and friendship between the two countries would be a powerful and enduring factor in promoting peace and stability in Asia and the whole world, Pant concluded.

Vijayt Jolly, president of Delhi Study Group, also addressed the session, attended by senior diplomats and government officials.

(Xinhua News Agency June 15, 2003)