Chinese Premier Li Keqiang meets Salman Khurshid

Chinese Premier Li Keqiang met External Affairs Minister Salman Khurshid here on Monday, as he sought to strengthen mutual trust and deepen cooperation between the two nations after a recent military standoff in Ladakh threatened to derail ties between the two Asian giants.

The Chinese premier also visited Rajghat, the memorial of Mahatma Gandhi and paid homage to the father of the Indian nation.

Bilateral trade between the two countries touched USD 73 billion in 2011, making China India's largest trade partner, but slipped to USD 66 billion last year.

Singh also said it was important to find a way to balance out India's USD 29 billion trade deficit with China as the two countries aim for USD 100 billion in bilateral trade by 2015.

Up from next to nothing in the 1990s, trade has been heavily skewed in favour of China. It exports power and telecoms equipment to its neighbour, which as one of the world's fastest growing major economies could offer brighter opportunities for business than the stagnant West.

The growing deficit is a bone of contention though, and India is pressing for greater access for its pharmaceuticals and IT services.

China has never sought a trade surplus or blocked imports, its deputy trade minister Jiang Yaoping said on Thursday, blaming the imbalance on "differences in the two countries' economic structures".

Prior to the visit, Li said he chose his first destination on the four nation tour to show how important India is for China and also because he had fond memories of visiting as a Communist youth leader 27 years ago.

The two countries are expected to sign agreements on trade, agriculture, the environment and culture, Xinhua said after Li arrived on Sunday. Li is due to leave India on Wednesday to travel to Pakistan, then Switzerland and Germany.