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AGREED MINUTES OF THE 1ST INDIA-CHINA STRATEGIC ECONOMIC DIALOGUE

Agreed Minutes of the 1st India-China Strategic Economic Dialogue

September 26, 2011

The 1st India-China Strategic Economic Dialogue (hereinafter referred to as ‘the Dialogue’) was held at Beijing, China on September 26, 2011. The Indian side was led by H.E. Mr. Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, Republic of India and the Chinese side was led by H.E. Mr. Zhang Ping, Chairman, National Development and Reform Commission, People’s Republic of China (hereinafter referred to as the ‘two sides’).

2. Based on the consensus reached by the governments of India and China, the establishment of the Dialogue was announced in the India-China Joint Communiqué issued during the visit to India by H.E. Mr. Wen Jiabao, Premier of the State Council of the People’s Republic of China in December 2010.

3. The two sides had an in-depth and frank exchange of views on the world economic situation, respective domestic macro-economic situations, the goals and implementation of the mid and long-term economic and social development plans of the two countries as well as their respective industrial, fiscal and monetary policies and agreed to enhance pragmatic cooperation in economic sectors. The two sides agreed that the Dialogue was highly productive and successful.

A. World Economic Situation

4. The two sides shared views on the current world economic situation, and agreed that since the beginning of the year, the world economy is picking-up, but with weak momentum. The process of recovery is not firmly established and neither is it balanced. Escalated risk with respect to sovereign debts in major developed economies; large fluctuations in international financial and commodity markets; and growing global inflation, which is particularly acute in emerging markets have brought about additional uncertainties to the global economic outlook. In this scenario, India and China must continue to focus their efforts on domestic economic growth, which can provide stability to the world economy.

B. Respective Domestic Macro-economic Situations

5. The two sides introduced their respective domestic macro-economic situations, enumerated the challenges encountered in the course of economic development, and expounded on the policies they would adopt in the coming years. They agreed that, though new problems and issues emerged in the domestic economic operations of the two countries and in the international environment, India and China have continued to maintain sound economic development. The two sides also agreed to strengthen communication on macro-economic policies, share development experiences and enhance coordination in addressing economic challenges.

C. Mid and Long-term Development Plans

6. The two sides introduced the major goals, strategic tasks and implementation framework outlined in the respective mid and long-term social and economic development plans of the two countries. The two sides agreed that India and China face the common task of advancing reform and promoting the comprehensive, balanced and sustainable development of each country. The formulation and effective implementation of their mid and long-term development plans are of great significance in sustaining rapid and stable economic and social development in the long run. The two sides will learn from each other and conduct mutually beneficial cooperation in formulating and carrying out their respective mid and long-term development plans.

D. Improving Investment Environment

7. The two sides agreed to stay committed to deepening bilateral investment cooperation, further opening markets, and improving the investment environment in India and China so as to lay a solid foundation for pragmatic cooperation between the businesses of the two countries on the basis of complementarities, mutual benefit and win-win outcomes.

E. Energy Efficiency and Conservation, and Environmental Protection

8. The two sides agreed to strengthen cooperation on energy efficiency and conservation as well as on environmental protection and actively develop cooperation in energy matters including in the renewable energy sector in order to promote sustainable development. Enhanced exchanges in these spheres would be the new engine for greater cooperation between the two sides.

F. Infrastructure Cooperation

9. The two sides discussed the current status of infrastructure development in the two countries as well as prospects of cooperation. They agreed to enhance cooperation in these sectors, particularly in the railway sector on the basis of mutual complementarities and benefit.

G. Water Use Efficiency

10. The two sides agreed to enhance communication, encourage bilateral cooperation on water conservation and clean water technologies.

11. The two sides agreed that the 2nd India-China Strategic Economic Dialogue will be convened in India in 2012. They also agreed that prior to the 2nd Dialogue, there would be a working group meeting to implement the consensus and decisions agreed to by the two sides at the 1st Strategic Economic Dialogue.

(Montek Singh Ahluwalia)

Deputy Chairman

Planning Commission of the

Republic of India

(Zhang Ping)

Chairman

National Development and Reform Commission of the People’s Republic of China

Source: http://www.indianembassy.org.cn/newsDetails.aspx?NewsId=252&BId=1

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