Mumbai: India and China have pledged to boost exchanges and co-operation on bond market development, opening of capital markets and financial supervision.

The two sides also would make a combined effort to push their case for a greater say in the management of international financial institutions, including the World Bank, International Monetary Fund and the Asian Development Bank.

In a joint statement signed at the second China-India Financial Dialogue in Beijing, the two countries also agreed to expand channels for direct financing and boost financial supervision to guard against risks brought about by short-term cross-border capital flows.

The two sides shared the view that the macro-economic situation in both countries was favourable and the two economies had sustained steady and rapid growth, finance secretary Subba Rao, who led the Indian side, said.

The robust economic growth in China and India will help the globe better guard against economic recession, according to the statement.

The two countries also pledged to draw on each other''''s development experience and add more muscle to their combined efforts in financial and fiscal fields.

The two neighbors at home face common tasks to prevent inflation, manage capital flows, save energy and realise sustainable growth. By drawing on each other''''s development experiences, the two countries can deal with the challenges and play their role in maintaining a steady world economic growth, Subbrarao said.

"China and India will both play an active role for the steady growth of the world economy," he said.

The world''''s two largest developing countries, China and India, have also identified a sub-prime crisis spread, increasing oil and commodity prices, global economic imbalance and trade protectionism exacerbation as factors that enlarge potential risks to them to continue economic growth.

The Chinese team was led by Li Yong, vice minister in the ministry of finance of China.

The two countries also pledged to improve macro-economic controls, promote renewable and clean energy development and usher in more sustainable resources-saving and environment-friendly production and consumption models.