Indian embassy in Beijing to have new economic cell

The cabinet yesterday cleared a proposal to create an economic wing in the Indian embassy in Beijing even as president Pratibha Patil was on her way to China.

According to the government, the new wing will deal with matters concerning macro-economic coordination and the G-20, foreign investment, multilateral and bilateral borrowing / lending and financial sector developments in China and the Asia Pacific region.

"It is expected to play an effective role in promoting India-China cooperation in large infrastructure projects, and will work towards identification of new areas of cooperation in business and trade.

It is also expected to work towards promotion of exports of Indian goods in China as well as financial and technical collaboration between Chinese and Indian firms," according to a statement to the effect. The statement added that the wing would be headed by a minister (economic).

The government believes coordination of efforts to facilitate trade and investment flows between the two countries would create a demand for related infrastructure.

It would also create a demand for other supporting services and generating additional avenues for cooperation over a wide range of socio-economic services.