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The two Asian giants, both among the world's fastest-growing economies, signed an agreement in 2005, pledging to bring bilateral trade volume to US$20 billion by 2008.

Trade between the two countries has skyrocketed from US$2.91 billion in 2000, achieving an average annual rise of 45 percent, officials said.

India was China's 10th-largest trading partner last year, and China was India's second-largest after the United States.

Investment in India totaled US$170 billion at the end of 2006, mainly in electronics, communications and light industry.

According to Goldman Sachs, India will overtake the US to become the world's second-largest economy, after China, by 2042.

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