Sunday, March 27 2005 14:18 Hrs (IST) - World Time -

New Delhi: In a bid to give a boost to bilateral trade relations, India and China are likely to firm up a Comprehensive Economic Cooperation Agreement (CECA) when Chinese Premier Wen Jiabao visits the country next month.

The Indo-China Joint Study Group (JSG), which concluded its report this week, has recommended a CECA under which a preferential trading arrangement for goods, services and investment could be established in a step by step manner, official sources said.

While the Chinese side expressed keenness for a Free Trade Area with India, New Delhi, which has some concerns, wanted to take a cautious approach and favoured a step-by-step opening up.

Besides trade in goods and services, mutual recognition agreement, protocol of inspection of each other's export certification agencies and customs cooperation, the agreement will encompass Bilateral Investment Promotion Agreement in tourism and air services.

As per the air services agreement, the number of flights are expected to be increased from seven to 42.

Indo-China bilateral trade increased at 79 per cent in 2004 to $ 14 billion.