Mumbai: India and China today gave a major push to their ties by signing 11 agreements covering issues ranging from economic planning to housing, health and culture that are expected to improve the foundation of their current ties.

The two sides also agreed to triple bilateral trade target to $60 billion against the previous target of $40 billion within four years and deepen defence ties.

China also agreed to address New Delhi's concern over burgeoning trade deficit, which crossed $9 billion last year in Beijing's favour.

Annual trade between the two countries is currently worth about $37 billion, and has risen 56 per cent in the past year. (See: PM addresses India-China economic, trade and investment summit)

But India's trade deficit with China has also risen from about $4 billion to $9.6 billion since 2006, and could exceed $12 billion by the end of the financial year.

Prime minister Manmohan Singh told a meeting of business heads in China that India should bolster exports to China which, in turn, needed to give greater market access to Indian goods.

China in turn offered to send frequent buying missions to India, which wants to diversify the basket of exports by including fruits and vegetables.

Commerce minister Kamal Nath got the assurance during a meeting with his Chinese counterpart Chen Deming.

India also sought access to its aviation and entertainment sectors and removal of technical and non-tariff barriers specifically in the pharmaceutical sector.

The two countries also instructed their officials to set a deadline for "arriving at an agreed framework of settlement" on the decades old border problem.

The most important decision was the setting of an ambitious two-way trade target of $60 billion by 2010.

The previous target of $40 billion by 2010 is expected to be reached this year itself while the target of $20 billion for 2008 has already been reached in 2006.

Manmohan Singh, in his address at the China-India Business Summit earlier in the day, said both countries needed to have a "strategic plan" as they "stand poised to regain their weight in the global economy".

A joint statement issued by the two sides called for "a shared vision for the 21st century." It also called for building "a relationship of friendship and trust" while being "sensitive to the concerns and aspirations" of one another.

India and China which held their first joint military training exercise in the Chinese city of Kumming last month, will hold a second one in India later this year.

A second India-China Defence Dialogue will also be held in 2008 to further the military understanding between the countries.

Foreign ministers of the two countries will maintain the momentum of their diplomatic engagement. Other senior leaders from both countries would also exchange visits.

India and China are also working together to create a new "architecture and pattern" of multilateral negotiations, ahead of commerce minister Kamal Nath's meeting with WTO director general Pascal Lamy.

"India and China do not necessarily have same sensitivities but both having a large agricultural base had similar concerns," Nath said.

The mutual cooperation in WTO was reviewed at a meeting between Nath and his Chinese counterpart Chen Deming.