The fourth is to strengthen bilateral defense cooperation which is an important component of overall bilateral cooperation. The two sides should make concerted efforts to strengthen cooperation in this regard.

On border issues, Hu expressed the hope that the two sides would continue to advance the negotiating process in the spirit of peace and friendship, equal consultations, mutual respect and mutual accommodation so that the border issues could be properly resolved at an early date.

Both sides should do their utmost to ensure that the border issues do not undermine the overall situation of bilateral ties, he said.

Before these issues are eventually resolved, both sides should make joint efforts for maintaining peace and tranquility along the border region, he said.

With the efforts of both sides, Hu said, the Sino-Indian strategic and cooperative partnership will see sound development and the growth of bilateral relations will bring benefits to the two peoples.

Singh said the two countries forged the strategic and cooperative partnership during his tenure as prime minister. Bilateral ties have been deepening, he said.

India will give top priority to its relations with China and is committed to advancing bilateral cooperation in various fields on the basis of progress made in the past, he said.

He expressed his appreciation for the increasingly important role China is playing in international affairs and China's important contributions to world peace and development.

He said China is not a competitor and that there is enough room in the world for the two countries to achieve development. The two countries share the desire to promote their bilateral ties and there are also potentials for them to cooperate on global and regional issues, he added.

Singh described economic cooperation as an important "pillar”of the overall bilateral relationship and said enhanced economic ties could give an impetus to the development of bilateral ties.

On military-to-military exchanges, Singh said that steady growth in exchanges between the armed forces of the two countries is to enhancing mutual trust and mutual understanding.

He also said that India and China share common interests on such issues as global trade and investment, climate change and the reform of the international financial order and should strengthen consultation and cooperation in addressing these issues.

On border issues, he said the Indian government is seeking a solution that should be fair, reasonable and acceptable to both sides. Before the issues are finally resolved, efforts should be made to ensure peace and tranquility along the border region, he said.

India recognizes the Tibet Autonomous Region as part of the territory of the People's Republic of China and will not allow anyone to carry out anti-China political activities in Indian territory, he said.

He said a healthy and stable bilateral relationship serves the interests of the two countries and also conforms to the interests of the region and the world at large.

Hu and Singh are here to attend the annual summit of the Shanghai Cooperation Organization (SCO) and the first meeting of BRIC, scheduled to be held in Russia's third largest city Wednesday.

Indian is one of the four observers of the SCO, a regional organization now groups China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. The other three observers are Pakistan, Mongolia and Iran.

BRIC is an acronym for the four key emerging economies -- Brazil, Russia, India and China.