India, China agree to strengthen coordination in policies

Recently, two sides deeply discussed new challenges global economy faces, macro-economic situations and policies in both countries

After continuous round of dialogues between the two trading partners India and China, both the allies have agreed to strengthen the coordination in various policies. This was the outcome of the sixth China-India Financial Dialogue held yesterday in Beijing.

"Both sides agreed to strengthen regular communication and coordination at various levels on macro-economic policies and major international economic and financial issues", said the press release.

After signing the Memorandum of Understanding (MoU) on 'Launching the Financial Dialogue between China and India' in April 2005, both the countries had held five rounds of dialogues prior to this.

In the recent dialogue, the two sides deeply discussed new challenges facing the global economy, macro-economic situations and policies in China and India.

"Both sides recognized that global economic recovery was still fragile with downside risks remaining high", the statement noted. It was discussed that with growth picking up in advanced economies, there is a need for these countries to collaborate with other emerging countries on the pace and timing of recalibration of their unconventional monetary policies and strengthen communication with the market to avoid the spillovers.

"China and India called for greater international coordination on economic policies, particularly in the implementation of policy measures adopted by the G20 to boost growth and employment for promoting strong, sustainable and balanced growth of the world economy", the statement said.

Also, it was agreed to hold the 7th India-China Financial Dialogue in 2014 in New Delhi.