Agreed Minutes of the 2nd India-ChinaStrategic Economic Dialogue
The2nd India-China Strategic Economic Dialogue (hereinafter referred toas ‘the Dialogue’) took place in New Delhi on 26 November, 2012. The Indian side was led by H.E. Mr. MontekSingh Ahluwalia, Deputy Chairman, Planning Commission, Republic of India andthe Chinese side was led by H.E. Mr. Zhang Ping, Chairman, National Developmentand Reform Commission, People’s Republic of China (hereinafter referred to asthe ‘two sides’).
2. Established during the visit to India ofH.E. Mr. Wen Jiabao, Premier of the State Council of the People’s Republic ofChina in December 2010, the Dialogue is aimed at improving macro-economicpolicy coordination, promoting exchanges on economic issues and enhancingIndia-China economic cooperation. The 1st Dialogue had been successfully held at Beijing in September 2011 where the twosides agreed to constitute five Working Groups on policy coordination,infrastructure, energy, environment protection and high-technology. A working level delegation from China visitedNew Delhi in March 2012 following which the five Working Groups met in Beijingin the months of August and September 2012. This preparatory work has contributed immensely to the successful deliberationsin and outcomes of the 2nd Dialogue.
3. During the 2nd meeting of theDialogue, the two sides discussed a wide range of topics including greatercooperation at the global level, strengthening communication on macro-economicpolicies, deepening and expanding trade and investment and promoting bilateralcooperation in the financial and infrastructure sectors. The proposals and recommendations made by thefive Working Groups were considered during the 2nd Dialogue anddirections given for their future activities.
4. The two sides agreed that in the currentglobal economic situation it was important to raise the level of economicengagement between India and China. Thetwo sides agreed on the following:
(i) Cooperationat the global level: Exchanging views on current global economic anddevelopmental challenges, the two sides recognized that as major developingeconomies, they needed to maintain close coordination and communication topursue their common interests. Amongthem is the reform of international monetary and financial systems, stabilizingthe volatility in global commodity markets, working towards sustainabledevelopment and climate change goals, and ensuring food and energysecurity. Both sides believe that theongoing and future cooperation on existing and upcoming issues will greatlyenhance mutual trust and expand common interests.
(ii) Strengtheningcommunication on macroeconomic policies: Following detailed discussions onthe global and national economic situations, the two sides agreed thatdevelopment growth trends globally have weakened as a result of a number offactors since the onset of the global financial crisis. This included weakening demand in thedeveloped markets, the ongoing Eurozone crisis, lower business confidence, andgrowing inflationary trends. Both sidesseek to maintain continued economic growth while adjusting manufacturing andservices, upgrading levels of technologies and skills, while developing thehard and soft infrastructure for encouraging economic growth. The two sides agreed that they wouldregularly conduct joint studies on issues of mutual interest, focusing onbenefits of best practices and information exchanges.
(iii) Deepeningand expanding trade and investment: With a view to promoting greatereconomic and commercial engagement, both sides recognized the need to explorepotential synergies in areas where the two sides have mutual complementarities,improve trade and investment environments, work towards removing marketbarriers, enhance cooperation in project contracting, deepen business tobusiness exchanges, improve transportation links, encourage greater bilateralinvestment and work towards achieving a more balanced and sustainable bilateraltrade.
(iv) Expandingcooperation in the financial and infrastructure sectors: Both sides have agreed to intensify thecooperation in the financial sector by encouraging financial institutions ofthe two countries to set up operations in either country to support enterprisesof the two countries to establish / expand commercial operations. Both sidesagree to undertake studies in related areas including innovative financialmethods to support the requirements of priority sectors particularly theinfrastructure sector having significant scope for furthering economicdevelopment.
5. The main outcomes of the five WorkingGroups are as follows:
(a) In the Policy Coordination Working Group, both sides discussed planpriorities and ways and means of achieving plan targets recently unveiled intheir 12th Five Year Plans. They exchanged views on skills development and industrial parkdevelopment. The two sides also submitted assessment reports on the investmentenvironments in each other’s country based on the experiences of theenterprises of the two countries and discussed possible solutions to improvethe investment environment. The twosides have also agreed to carry out joint studies on planning cooperation andskills development for employability, and entered into related MoUs.
(b) In the InfrastructureWorking Group, with its focus on enhancing railway cooperation, both sidesexchanged views on the broad policies and plans for railway development in eachother’s country. The two sides alsodiscussed high-speed rail development programme, heavy haul and stationdevelopment and entered into an MoU to exchange views and other relatedinformation in these areas.
(c) In the Energy Working Group, both sides briefed each other on thedevelopment of the power sector in the two countries, the ongoing cooperationin the power equipment sector, opportunities and challenges in the wind energysector, the possibility of Chinese power equipment manufacturers setting upservice centres in India and relevant policy environment to support the ongoing cooperation,and reviewed the small hydro power workshop that was successfully held inBeijing in October 2012.
(d) In the EnvironmentalProtection Working Group, the two sides agreed to enhance cooperation inthe implementation of energy efficiency projects through energy servicecompanies (ESCOs), encouraging visits to industrial and manufacturing centresexcelling in energy efficient initiatives, cooperate and jointly developtesting protocols and standards and have entered into a related MoU. The two sides also exchanged views onenhancing cooperation in water-saving technologies covering the areas of wastewater recycling and water-efficient irrigation systems.
(e) In the Hi-Technology Working Group, the two sides agreed to enhance cooperationin the Information Technology and Information Technology Enabled Services(IT/ITES). Both sides also agreed tocarry out / support joint studies to better understand the IT/ITES markets ofeach country and have entered into a related MoU in this area. The two sidesalso reached a consensus to explore the possibility of working together fordeveloping common standards for digital TV, audio and video codec standards andmobile communication technology.
6. The following Memorandums of Understandingwere signed by the two sides in the presence of the delegation leaders:
(a) Memorandum of Understanding between the Planning Commission of theGovernment of the Republic of India and National Development and ReformCommission of the Government of the People’s Republic of China on UndertakingJoint Studies.
(b) Memorandum of Understanding between theBureau of Energy Efficiency, Ministry of Power, Government of the Republic ofIndia and National Development and Reform Commission of the Government of thePeople’s Republic of China on Enhancing Cooperation in the Field of EnergyEfficiency.
(c) Memorandum of Understanding between theMinistry of Railways of the Government of the Republic of India and Ministry ofRailways of the Government of the People’s Republic of China on enhancingtechnical cooperation in the railway sector.
(d) Memorandum of Understanding between theNational Association of Software and Services Companies (NASSCOM), India andthe China Software Industry Association (CSIA) on Enhancing Cooperation in theIT/ITES Sector.
7. 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 anddecisions agreed to by the two sides at the 2nd Strategic EconomicDialogue.
Done at New Delhi on 26 November 2012in two originals.
(Montek SinghAhluwalia) (Zhang Ping)
DeputyChairman, Chairman, National
Planning Commissionof the Development and Reform
Repubic ofIndia Commissionof the
People’s Republic of China