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China Needs India and Vice Versa: Analyst

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Hello, I'm Saijal Patel from CNBC and you're watching "Asia Market Daily".

Friends forever. That's how Chinese Premier Wen Jiabao has described Beijing's relationship with India, during his visit to New Delhi.

The two economic superpowers have signed trade pacts, worth $16 billion, for sectors ranging from telecoms to resources.

Bilateral flows between the two nations are expected to hit $60 billion in this fiscal year.

And Haiyan Wang from the China India Institute expects their relationship to strengthen further over the next decade.

(SOT) Haiyan Wang, Managing Director, China India Institute:

"The economic integration between China and India is very strong and will continue to be very strong. If you look at the last 10 years, the bilateral trade between China and India has shot up 20 times from merely less than $3 billion dollars to $60 billion dollars this year. And the trade has been growing at four times the rate of the world trade."

Wang says China's expertise in high tech equipment will help India accelerate its manufacturing and infrastructure, and therefore help balance out bilateral flows.

(SOT) Haiyan Wang, Managing Director, China India Institute:

"Once India's competitiveness in manufacturing picks up and then you know I think the trade deficit issue will not be a significant issue, it will gradually correct itself. China and India are the largest economies by 2050 and they are the mega-growth economies and China needs India just as much as India needs China, so free trade will be very beneficial for both."

Thanks for watching "Asia Market Daily".

I'm Saijal Patel from CNBC.

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