India and China on Monday announced to hold their second joint military exercises this year and welcomed the "progress" in negotiations on the boundary issue.
Prime Minister Manmohan Singh and Chinese counterpart Wen Jiabao during extensive talks agreed to substantially enhance economic engagement by stepping up bilateral trade target from $40 billion to $60 billion by 2010.
Building on the goodwill generated by the landmark handshake between the world's two powerful armies last month in Kumming in China, the two leaders decided to have a second military exercise in India.
"We have agreed to continue to deepening mutual understanding and trust between our armed forces and welcome the successful first exercise in Kumming," Singh said.
On the outstanding boundary question, the two sides had "successful" discussions, the Prime Minister said at a press conference after the talks at the ornate Great Hall of the People.
"We welcome the progress made by Special Representatives for seeking a framework for settlement of the boundary question that is fair, reasonable and mutually acceptable and based on guiding principles and political parameters signed in April 2005."
While the SRs will continue the discussions, both sides reiterated their mutual commitment to maintaining peace and tranquility on the border.