A: We are neighbours with a history of extensive contact. There were, of course, periods of inactivity between us not only in the historical context but also in the modern context. Presently our two countries are in the process of rediscovering each other for there has been a realization, particularly I believe in China, that it is in our mutual interest to not only build trust and understanding but to extensively learn from each other’s developmental and other experiences and to reinvigorate efforts to resolve the differences between us.

Relations between our two countries have progressed steadily over the last 5 years. The pace has quickened in the recent past especially since the visit of Prime Minister Vajpayee to China in June 2003. The Declaration of June 2003 enshrines the principle on the basis of which we have agreed to build our long-term and constructive relationship. The Declaration also provides for a shared vision of bilateral relations and an agreed framework for cooperation.

Premier Wen Jiabao’s forthcoming State visit to India will provide a new milestone in our bilateral relations and enable us to further broad base the on-going process of development and diversification of our relations. It would also greatly add to the growing trust and understanding between our two countries.

Q. Indian Prime Minister Manmohan Singh early this month has called for “further strengthening of relations between India and China” as both the developing countries faced similar problems. Can you explain what the similar problems are, and what are the common interests of the two countries?

A: India and China are both ancient civilizations which have interacted to mutual benefit in the past. Our two countries have many similarities. They are amongst the largest economies in the world and also amongst the fastest growing. We both happen to be located in Asia. Both are major developing countries and as such have broad mutual interest in the maintenance of peace, stability and prosperity in Asia and the world.

Our socio-economic development experiences are most relevant for each other. This is especially so since the developmental base of our economies is quite alike. Both of us have large rural populations engaged in agriculture. We both are dealing with the problems of poverty and unemployment. We can learn from each other’s experiences as we continue to develop our respective economies and deal with these socio-economic problems.

There is also much to learn from each other’s developmental experiences in the last two decades in the industrial, educational, health, knowledge industries and services sectors.

Q. In which areas do you think China and India have more room to cooperate in the years to come? And what will be the impact of this cooperation to Asia and the world?

A: India and China are both large developing countries which have in recent years been enjoying very rapid rates of growth. As our economies continue to develop rapidly in the years ahead, not only will there arise even more opportunities for bilateral cooperation but there will be concrete opportunities for our partners in Asia. Our engagement of and cooperation with the economies of ASEAN and East Asia will also be to our mutual benefit.

In addition to further developing trade and economic cooperation, our effort is to strengthen exchanges in areas such as agriculture and the rural economy, civil aviation, shipping, culture, education, science & technology, film and entertainment, youth and tourism. We also need to expand media exchanges.

India and China are uniquely poised to define the contours of the international political and economic landscape. Friendship and cooperation between our two countries will not only promote socio-economic development and prosperity in India and China but will also help maintain peace and stability regionally and globally, enhance the positive factors of globalisation and strengthen the trend towards multi-polarity in the international arena.

Q. Finally what is China like in the eyes of ordinary Indian people?

A: In India, our public knows a fair amount about China’s progress in recent years since our media carries substantial reportage on China. Most of that reportage of China in the Indian media is positive. Indians are keenly following events in China and are happy at China’s development and achievements.

Q. How do you see Sino-India business potential?

A: Over the last few years, as relations between our two countries have developed and diversified, our two economies have continued to grow rapidly and our bilateral business interaction has also strengthened. Bilateral trade has grown very significantly and the challenge before us now is to sustain a sufficiently high growth rate in the years ahead. Economic cooperation activities have also progressed.

The Joint Study Group established by our Prime Ministers in June 2003 to examine potential complementarities and draw up a programme for development of bilateral trade and economic cooperation has very recently concluded its work. We look forward to studying the JSG’s recommendations for we wish to benefit from these to further cement the trade and economic partnership between our two countries. There is need for much greater trade facilitation on both sides. Information gaps still remain but the process of discovering each other’s markets and opportunities is well underway and bodes well.

The development of India-China trade and economic cooperation has to be a cooperative venture between our two countries. The opportunities are increasing day by day. I personally believe that a trade figure of US$ 20 billion by 2010 is feasible.

Q. How to best collaborate in the import and export sector for the transition from planned to market economy?

A: India is a long standing market economy with well established market institutions. India’s economy is largely internally driven through domestic demand and investment. Developed institutions of market economy enable productive use of our savings and investment. Our dependence on foreign direct investment is considerably less that that of China.

Our two economies have complementarities in a variety of areas which can be exploited for mutual benefit. As our economies continue to develop rapidly in the years ahead, not only will there arise even more opportunities for bilateral cooperation but there will be concrete opportunities for our partners in Asia and the world. With the development of cooperation in trade and economy between our two countries, our synergies are likely to grow.

Q. China and India recently reached further agreement on IT and software R&D collaboration. What is the impact of such collaboration to the global computer industry? And what is the strategy of year 2005 between the two countries in developing high technology?

Indian IT education providers made an entry into China almost five years ago and are today quite well established. They were followed by Indian IT companies some of which have established development centers in China to service the needs of their clients in this country. There are many other Indian IT companies which are not necessarily based in China but are providing solutions and services to Chinese companies.

In recent years there has been great interest, including in the central and provincial governments of China, for greater collaboration with India in the IT sector. Our respective core competences in hardware and software provide a natural meeting ground. There is also some complementarity between our software industries. Both our countries face the challenge of a digital divide and we have a great need to use information technology to accelerate our socio-economic development.

The information technology industry in India is largely in the private sector. The industry is very competitive and is constantly looking for new avenues for growth and development and in this process they have discovered China and are looking at fruitful collaboration and cooperation with Chinese partners. This is a positive development but it is too early to assess what impact this will have on the global computer industry. As our cooperation and collaboration in this sector grows and since our two countries are going to be amongst the largest users of information technology, undoubtedly our cooperation will impact on a bigger scale than it does at present.

We have several agreements between our two countries on collaboration and cooperation in different aspects of science and technology and space. Our effort now is to consolidate what we have agreed and how best to implement these agreements in a coordinated manner. An agreement has been arrived at to this effect. There are also specific activities that have been agreed for the period 2004-2006 between our Department of Science and Technology and the Chinese side. Cooperation in space can be helpful in remote sensing, disaster management, tele-education, tele-medicine etc.

As for IT, the application of science and technology provides opportunities for both our countries to find expeditious solutions to many of our developmental problems. Collaboration between us to find such solutions will be of great advantage to both our countries and we hope to make a good start in this direction in the coming months.