Beijing: India and China on Mach 30 agreed to give a major fillip to economic and trade ties and pave the way for a substantial increase in the quantum of annual bilateral trade from the existing $ 3.6 billion.

This was decided at a meeting External Affairs Minister Jaswant Singh had with Chinese Premier Zhu Rongji in Taiyuan, capital of the historical Shani province.

Both sides felt the present level of bilateral trade was grossly unsatisfactory and concerted efforts were required to put economic ties between the two countries on the fast track.

It was agreed to intensify exchange of visits between the business communities. The two sides have decided to facilitate establishment of business representative offices and organising exhibitions and trade fairs.

They agreed on the need to improve direct banking and shipping services. The two countries had on March 29 decided to ease granting of visas on a reciprocal basis.

It was felt that direct air links launched earlier this week was a major step in the direction of promoting trade and economic ties.

India and China resumed trade relations officially in 1978 after the 1954 trade agreement that lapsed in 1962.

In 1984, the two countries signed the Most Favoured Nation (MFN) agreement, which was followed up with the establishment of the India-China Joint Group on Economic Relations and Trade, Science and Technology during the visit of then Prime Minister Rajiv Gandhi here in 1988.

PTI