India and China has decided to resolve their long-standing border dispute based on the Agreement on the Political Parameters and Guiding Principles for the Settlement of the Boundary Question signed in April 2005. Both sides have also decided to start talks for a civil nuclear deal.
Both sides agreed to seek “fair, reasonable and mutually acceptable” solution to the border problem relating to defining the Line of Actual Control (LAC).
“Recalling the Agreement on the Political Parameters and Guiding Principles for the Settlement of the Boundary Question signed in April 2005, both sides reiterated their commitment to an early settlement of the boundary question and expressed their conviction that this will advance basic interests of the two countries and shall, therefore, be pursued as a strategic objective,” stated the joint statement issued after a meeting between President Pranab Mukherjee and Chinese President Xi Jinping.
Both sides assigned their respective special representatives to carry out the work in obtaining a political consensus on the issue under the agreed Working Mechanism for Consultation and Coordination on India-China Border Affairs.
India and China also decided that until the matter is settled, both sides will maintain “peace and tranquility” as an “important guarantor” for the growth of bilateral relations.
Both countries also emphasized on bettering ties between the Indian Army and Chinese People’s Liberation Army (PLA).
Towards the end of the five-page document, it was mentioned that both governments will seek “improved bilateral military ties” for “building mutual trust and confidence.”
The statement also added that regular visits into each other’s countries will also be undertaken by the defence ministries and military leaders.
India and China will also be starting talks to have a civil nuclear agreement in order to expand the civil nuclear energy programme running in both countries.
On the economic front and in order to address the issue of rising trade deficit with China, it has been decided that both sides would explore ways to achieve greater economic cooperation in newer areas, thereby the scope of two-way trade. Some of the sectors identified are industrial investment, infrastructure development, energy conservation and environment protection, high-tech industry, clean energy and sustainable urbanisation.
It will also explore ways to establish joint venture and collaboration in the creation of smart cities. A dialogue mechanism will soon be set up between the Department of Economic Affairs under the Finance Ministry and China’s Development Research Centre of the State Council.
Besides, the joint statement also reiterated China investing $ 20 billion for over five years in India.
Prime Minister Narendra Modi also accepted Chinese President’s Xi Jinping’s invitation to visit China soon.