India, China hold first economic summit, target doubling bilateral trade

India and China will hold a first-ever economic summit in Beijing from today, with the aim of doubling bilateral trade to $100 billion by 2015 and balancing India's yawning trade deficit, India's Mint newspaper reports.

Montek Singh Ahluwalia, deputy chairman of India's Planning Commission, will meet Zhang Ping, head of China’s National Development and Reform Commission, on Monday and Tuesday, as chalked out at a meeting between the Chinese and Indian premiers in December. 

Bilateral trade is expected to increase to $70 billion in 2011-12 from $60 billion in 2010-11, the paper said. But India's trade deficit increased to $20 billion last year from $16 billion in 2009-10, the paper said.

Indian exports to China consist of raw materials such as iron ore, while Chinese imports into India consist of finished goods such as power and telecom equipment, imported by corporate groups such as the Tatas and Reliance, Mint reported.

Meanwhile, in areas where India has an edge—including information technology and pharmaceuticals—there are many barriers inhibiting Indian imports into China, according to the paper.