“Our economies are still evolving, and we are adopting best practices from each other in a common endeavor to benefit our respective populations.”---Ambassador Nirupama Rao
　　Chinese President Hu Jintao visited Viet Nam, Laos, India and Pakistan on November 15-26. Shortly before he began this diplomatic flurry, Beijing Review reporter Yan Wei spoke with the Indian Ambassador to China, Nirupama Rao, about recent developments in Sino-Indian relations and the similarities and differences of the two emerging economies.
　　Beijing Review: How do you characterize Sino-Indian relations at present? What do you think will be the major issues to be discussed during President Hu Jintao’s visit?
　　Nirupama Rao: India-China relations have achieved sustained development across a wide range of areas. Bilateral trade is increasing, while there is growing investment by Indian companies in China, and vice versa. A large number of Chinese companies are undertaking large-scale projects in India. Involvement in cultural matters, science and technology, education, water resources, agriculture, health, anti-corruption programs, banking and financial services, public security and the fight against drug-trafficking is being deepened. Defense exchanges are becoming more frequent, including high-level exchanges. Similarly, there is good cooperation in international and regional forums. Overall, the bilateral relationship is maturing with both sides increasingly appreciative of each other’s interests and aspirations.
　　President Hu Jintao’s visit is an important and significant event for a number of reasons: It is the first visit of a Chinese head of state to India in a decade and the first in the 21st century; it is the first top-level visit either way since the two sides agreed to establish their strategic and 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 over 20 years ago. It will also be an opportunity for the Indian leadership to hold wide-ranging discussions with him. The two sides will exchange views on bilateral relations as well as on issues of mutual interest in the regional and global arena with the aim of promoting comprehensive, all-round development of relations.
　　When Premier Wen Jiabao visited India last year, the two countries announced plans to build a strategic and cooperative partnership for peace and prosperity. What progress has since been made? 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 the bilateral relationship as a strategic and cooperative partnership for peace and prosperity. This was an important milestone. During that visit, a number of important agreements were signed. These include the Agreement on Political Parameters and Guiding Principles for the Settlement of the India-China Boundary Question, the first agreement between the two sides on the boundary issue that marks the conclusion of the first stage of bilateral negotiations. The two sides had also agreed to share hydrological data on the Sutlej/Langqen Zangbo River, set up a film cooperation commission, establish a finance dialogue and a joint task force to determine the feasibility of an India-China regional trading arrangement (RTA). Progress is being continuously made in all these areas. Bilateral trade will surpass $20 billion this year; construction of an Indian-style shrine in central China’s Luoyang City has commenced and is progressing very satisfactorily; meetings of the finance dialogue and the joint task force on the RTA are being held; and negotiations between special representatives of both governments 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 helpful to further enrich, expand and deepen the bilateral strategic and cooperative partnership.
　　Frequent and regular high-level exchanges are an important aspect of our bilateral strategic and cooperative partnership. President Hu’s visit is a significant milestone in the development of this partnership. The visit will provide a further impetus to diversification and deepening of bilateral relations.
　　As rapidly developing countries with surging energy demands, how can China and India cooperate in the energy field?
　　For two fast-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 high cost to their respective economies. In January this year, India and China signed a memorandum of understanding to encourage collaboration in 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, hydroelectric power, wind energy and nuclear energy. As major consumers of energy, as neighbors and developing economies, India and China can maximize benefits by sharing experiences in research and development and search for viable energy sources.
　　As the “Year of China-India Friendship” draws to an end, can you sum up its main achievements?
　　The purpose of the Friendship Year is 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, which brought our Lok Sabha [lower house of parliament] speaker and a parliamentary delegation, India’s defense, science and technology and energy ministers and also chief ministers of several Indian states to China.
　　Through a series of events like the Indian Film Festival, comprehensive cultural festival, academic seminars on Indian literature, reciprocal visits of a 100-member youth delegation and the upcoming 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 civilization and spiritual ties are also being reinvigorated in this year of friendship through the building 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 need to be sustained and further consolidated in the years ahead.
　　How can China and India enhance collaboration in multilateral forums?
　　India and China are two important developing countries. Both nations face similar challenges and opportunities and they have similar perceptions on several regional and global issues, which offer opportunities for closer cooperation and coordination in regional and international forums. They 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.
　　Western media like making comparisons between China and India. In your opinion, what are the similarities, and what are the differences?
　　By their sheer scale, rapid economic growth and rising international status, India and China are of interest to the rest of the world in their own right. Media comparisons between our two countries stem from our common aspirations for growth and development, albeit along the differing trajectories pursued within our respective socioeconomic 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 have 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 each other’s best practices in a common endeavor 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.
　　

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