Beijing: India and China have agreed to establish a joint working group (JWG) on steel to boost bilateral co-operation in this key sector, Minister for Steel Braja Kishore Tripathy said on May 22.

The Chinese side has responded positively to my suggestion for the early establishment of the JWG, Tripathy said.

A bilateral understanding to this effect was reached during talks on May 21 between Tripathy and the chairman of China's State Economic and Trade Commission (SETC), Li Rongrong.

Though India and China had signed a Memorandum of Understanding (MoU) in 1995 and 2000 on the setting up of the JWG, it could not be implemented till now, mainly due to the massive restructuring and reform of China's steel industry in recent years.

The minister said he also pressed the Chinese side to increase steel imports from India, which is facing a glut as a result of anti-dumping and tariff restrictions imposed by the United States.

Chinese side has agreed to consider India's request, he said.

The demand for steel in China is expected to rise further in the coming years as a result of the construction activities related with the 2008 Olympics to be hosted by the Chinese capital, Beijing, official sources said.

During the meetings, Tripathy also stressed the need for having a long-term arrangement for export of iron ore to China.

PTI