Ambassador’s interview to Beijing Review

1.  How do you characterize the China-India relations at present?  What do you think will be the major issues to be discussed during President Hu Jintao’s coming visit?

India - China relations have achieved sustained development across a wide range of areas.  Bilateral trade is growing, while there is growing investment by Indian companies in China and vice versa.  A large number of Chinese companies are executing large scale projects in India.  Engagement in cultural, S&T, education, water resources, agriculture, health, anti-corruption, banking and finance, public security, fight against narco-trafficking etc. is being deepened.  Defence exchanges becoming more frequent including high level exchanges. Similarly there is good cooperation in international and regional fora. The overall bilateral relationship is maturing with both sides being increasingly appreciative of each other’s interests and aspirations. 

President Hu Jintao’s visit is an important and significant event in bilateral relations for a number of reasons: it is the first visit of the President of China to India in a decade; it is also the first visit of China’s President to India in the 21^st century; it is the first high level visit from either side after the two sides agreed to establish their strategic cooperative partnership in 2005; and the visit is taking place in the year of India-China friendship.  The visit will provide an opportunity for President Hu to witness the developments that have taken place in India since his last visit to India over 20 years ago. It will also be an opportunity for Indian leadership to hold wide ranging discussions with President Hu.  The two sides will exchange views on bilateral relations as well as on issues of mutual interest in regional and global arena with the aim of promoting the comprehensive, all-round development of their relations..

2.  When Premier Wen Jiabao visited India last year, the two countries announced to build a strategic and cooperative partnership for peace and prosperity.  What progress has since been made in bilateral relations?  How will President Hu’s visit strengthen this partnership?

During the visit of Premier Wen Jiabao in April 2005, the two countries reached a consensus to redefine bilateral relationship as a strategic and cooperative partnership for peace and prosperity.  This was an important milestone in the development of bilateral relations.  During that visit, a number of important agreements were signed.  These included the Agreement on Political Parameters and Guiding Principles for the Settlement of the India-China Boundary Question, the first such agreement between the two sides on the boundary issue, which marked the conclusion of the first stage of talks between the Special Representatives on the boundary question.  The two sides had also agreed to share hydrological data on Sutlej / Langqen Zangbo River, set up a Film Cooperation Commission, establish a Finance Dialogue and a Joint Task Force to determine the feasibility of India-China Regional Trading Arrangement. Progress is being continuously made in all these areas.  Bilateral trade will cross US$ 20 billion this year; construction of the Indian style Shrine in Luoyang has commenced and progressed very satisfactorily; meetings of the Finance Dialogue and Joint Task Force on RTA are being held; meetings of the Special Representatives to work out a Framework for the settlement of the boundary issue based on the Political Parameters and Guiding Principles are continuing apace.  All these developments are helping to further enrich, expand and deepen the bilateral strategic cooperative partnership.

Frequent and regular high level exchanges are an important aspect of our bilateral strategic and cooperative partnership.  President Hu’s visit, the first visit of the President of China to India in a decade, is a significant milestone in the development of this strategic cooperative partnership.  The visit will provide a further impetus to diversification and deepening of bilateral relations.

3) As rapidly developing countries with surging energy demands, how can China and India cooperate in the energy field?

For two fastest growing developing economies, the need for clean, affordable and reliable sources of energy is a primary concern, more so when both countries have to depend increasingly on fuel imported at a high cost to their respective economies. In January this year, India and China signed an MOU to encourage collaboration for undertaking joint exploration and production initiatives for oil and natural gas resources in third countries through joint commercial enterprises and joint bids for specific proposals. Both sides have worked together in this sector in several countries.

Fossil fuels, though, are only a part of the larger energy mix. We need to seriously start looking at cooperating in developing alternative non-conventional and renewable sources of energy, like solar energy, hydro-electric power, wind energy and nuclear energy, etc. As major consumers of energy, as neighbours and developing economies, India and China can maximize benefits by sharing experiences in R&D and search for viable energy sources.

4)      What should the two countries do to realize the goal set during Premier Wen’s visit last year of raising bilateral trade volume to US$ 20 billion in 2008?

Economic and commercial linkages have nourished our overall bilateral relations in the last few years. The top leadership of our two countries has always paid special attention to furthering trade and economic ties and has set trade targets to encourage commercial interaction.

Let me share with your readers that our bilateral trade is growing continuously and in the first nine months of this year has surpassed US$ 18 billion. We are well on course to meeting the target of US$ 20 billion this year itself. Indeed, we could set an even higher target over, say, a five-year time frame. Of course, the composition of trade should be diversified, so as to make this trade growth sustainable.

5)      As the China-India Friendship Year draws to an end, can you sum up its main achievements?

The purpose of the Friendship Year was to celebrate our millennia-old friendly ties and to make our citizens cognizant of each other’s rich and distinctive cultural heritages. To a large extent, we have been able to achieve these objectives. This year has witnessed a number of important visits, including the visit of our Lok Sabha Speaker and a Parliamentary delegation, the Defence, S&T and Energy Ministers and also Chief Ministers of a few Indian states to China. We are now looking forward to the landmark visit of President Hu to India. Through a series of events like the Indian Film Festival, academic seminars on Indian literature, reciprocal visit of a 100-member youth delegation and the upcoming major exhibition of rare specimens of ancient Indian art in four different cities in China, we have also tried, and are trying, to introduce, in a focused manner, the various facets of India’s cultural traditions and heritage to Chinese audiences. Our civilizational and spiritual ties are also being re-invigorated in this year of friendship through the construction of an Indian-style Buddhist shrine in the historic White Horse temple complex in Luoyang. This awareness of, and interest in, each other’s culture and enduring bilateral links, constitute an essential element of friendship, and to the extent we have realized it through the events and exchanges organized this year, we can call the Friendship Year a success. Of course, the gains from the Friendship Year need to be sustained and further consolidated in the years ahead.  

6.  How can China and India enhance collaboration in multilateral forums such as the UN, the Shanghai Cooperation Organization, and meetings with the G8 and ASEAN?

India and China are two important developing countries in the world.  Both nations face similar challenges and opportunities in many areas.  The two have similar perceptions on several regional and global issues which offer opportunities for closer cooperation and coordination in regional and international fora. The two sides are cooperating and coordinating their efforts in dealing with regional and global issues in the fields of developmental economics, climate change, energy security, and fight against drug trafficking and other cross border crimes. The two countries are mindful that such cooperation not only benefits the two countries but is also in the larger interest of the whole world. As two large countries in the inter-connected globalized world of today, developments within their respective borders have global implications and vice versa. Starting from this perspective, the two countries have started a process of sharing their respective developmental experiences with each other and with other developing countries in Asia and Africa. 

7)      Western media like making comparisons between China and India. In your opinion, what are the similarities that the two countries share as developing economies, and what are differences?

By their sheer scale, rapid economic growth and rising international stature, India and China are of interest to the outside world in their own right. Media comparisons between our two countries stem from our common aspirations for growth and development, albeit along varying trajectories pursued by us within our respective socio-economic environments. The fact that India and China are today two of the fastest growing economies makes their comparison more than just an academic exercise.

As developing economies, India and China are both faced with a similar set of opportunities and challenges, and could learn from each other’s experiences. Globalization and a relaxed trade and investment regime have coincided with higher growth rates for both countries. Both India and China are transitional economies in terms of occupational structure, and a majority in each country is still absorbed in farm activities. Poverty, although diminishing over the period of reforms in our respective countries, is still high in absolute terms, and inequalities of income distribution, across regions or social groups, still persist. Health and environmental challenges are also appearing in both countries in the process of economic development and industrialization.

At the same time, there are basic differences in our experiences of development. India’s economic growth is primarily driven by domestic demand, while export, often fuelled by foreign investment, has been the major component of China’s growth trajectory. Foundations for India’s economic growth were laid by our long-standing focus on higher and technical education, while in China, world-class infrastructure and high reach of primary education has induced great changes. As a corollary, India emerged as a knowledge economy, with a reputation for financial and software services, while China became a major global supplier of manufactured goods. China has built several state-owned or joint-stock industrial leviathans, while India’s private sector has thrown up a number of global players.

The important thing is not to couch comparisons between India and China in normative terms. Our economies are still evolving, and we are adopting best practices from each other in a common endeavour to benefit our respective populations. For instance, India is trying to replicate China’s institutional innovation of Special Economic Zones, while China is seeking India’s expertise in IT.