Visiting Chinese President Hu Jintao delivers a speech in New Delhi, capital of India, yesterday. -Xinhua

Chinese President Hu Jintao on Wednesday made a five-point proposal for further developing Sino-India relations, focusing on increasing political trust, business cooperation, cultural and social exchanges, boundary issues and multilateral cooperation.

Hu made the proposal in a keynote address dubbed "Working Together to Expand Cooperation and Create a Bright Future" at Vigyan Bhavan in New Delhi during his state visit to India.

"China is ready to work with India to ensure that the China-India strategic and cooperative partnership grows in both depth and width," Hu said.

MUTUAL POLITICAL TRUST

Hu proposed first to increase mutual political trust and consolidate the basis of bilateral relations.

"We should continue regular leadership meetings and expand high-level exchanges between the governments, legislatures and political parties to enhance mutual understanding," said Hu.

Furthermore, the two should make full use of the bilateral consultation mechanisms to maintain regular dialogue and enhance communication on issues of respective concern, he said.

BUSINESS COOPERATION

The two-way trade volume between China and India registered an averaged annual growth rate of 32 percent between 1995 and 2005, Hu said, adding China had become India's second biggest trading partner and India was China's largest trading partner in South Asia.

"We should work vigorously to increase the varieties of goods traded and add more value to them," the president said, noting their goal is for the two-way trade to reach 40 billion U.S. dollars in 2010.

He proposed to encourage and support cooperation between the business communities of the two countries in information technology, energy, resources, infrastructure, science, technology and agriculture.

CULTURAL AND SOCIAL EXCHANGES

Hu said the two countries should continue to carry out cultural exchanges in various forms, strengthen cooperation in education and tourism, expand air links, increase media and youth exchanges and forge closer ties between sister cities.

The two countries will jointly host the China-India Year of Friendship through Tourism in 2007, the president said.

EARLY SETTLEMENT OF THE BOUNDARY ISSUE

The early settlement of the boundary issue would contribute to peace and stability in the region, Hu said, noting it should be pursued as a strategic goal of the two countries.

China is ready to work with India, guided by the Five Principles of Peaceful Coexistence and the overall interests of the two countries, to actively seek a fair, just and mutually acceptable solution through friendly consultation on an equal footing, the president said.

"We hope to turn the China-India boundary into a bond of good-neighborliness and mutually beneficial cooperation," Hu said.

MULTILATERAL COOPERATION

Hu suggested that the two countries should develop multilateral cooperation and jointly uphold the legitimate rights and interests of developing countries.

"We should increase communication and coordination on major international issues to jointly uphold the overall interests of developing countries," he said.

Furthermore, the two countries should promote multi-polarity in the world and democracy in international relations and work to make the international political and economic order fairer and more equitable, Hu proposed.

Hu arrived here on Monday for a state visit as guest of Indian President Abdul Kalam. This is the first visit to India by a Chinese head of state in 10 years.

India is the third leg of Hu's four-nation tour, which has already taken him to Vietnam and Laos, and will also take him to Pakistan.