New Delhi, May 27: India has announced a creation of economic wing in its embassy in China, as President Pratibha Patil reached Beijing on Wednesday, May 26. The economic wing, headed by a Minister, signals the blooming trade ties between the two Asian giants.
The Union Cabinet announced the approval of the new wing in China as it would deal with the matters relating to macro-economic coordination, foreign investment, G-20 and multilateral and bilateral borrowing and lending. It would also help the finacial sector developments in China and the Asia Pacific.
'The economic wing is also expected to work towards promotion of exports of Indian goods in China as well as financial and technical collaboration between Chinese and Indian firms,' reported an official source.
The increase in the trade between two countries will create the demand for related infrastructure and supporting services. The coordination to facilitate trade and investment flows will help both the nations as India and China are two fastest growing economies.
The visit of Patil, is the first by an India head of state in the last ten years. Her visit has assumed significance for easing the lack of trust and mutural understanding between the two countries which is considered as one of the major reason behind the 'irritants' in the rapport.