China and India on Tuesday signed a landmark agreement aimed at boosting trade between the two countries.
The agreement, which also included the construction of two new railways linking the two Asian giants, also includes a pledge to build a Chinese-India port.
The deal, which will be signed in Beijing, follows an earlier agreement in February, when China and the Indian government reached an agreement on how to boost bilateral trade between both countries.
Chinese Foreign Ministry spokesman Lu Kang said the agreement will boost the bilateral trade of about $20bn, a figure that could rise as the Chinese economy grows.
China’s ambassador to India, Liu Zhenya, told reporters the agreement is the first of its kind between two Asian neighbours, and the country is working to ensure it will not impede regional growth.
He said the pact will create jobs and boost the economies of both countries by increasing trade.
China has already pledged $10bn in infrastructure investment, and India has promised $4bn, according to official data.
Last year, China and Indian leaders signed a $1.9bn deal to expand rail connections, improve road infrastructure and set up a high-speed rail link.
China also signed a new deal with China Railway Corp (CRC), which it hopes to use to speed up freight and rail freight movement between the countries.