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Trade between China and India hit US$24.9 billion last year, exceeding the 20-billion-US-dollar goal two years ahead of target, the Ministry of Commerce has announced.

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

According to the ministry, India was China's 10th largest trade partner in 2006, while Indian statistics showed China was India's second largest trade partner after the US.

Investment in India, approved by the ministry, totaled US$17 million by the end of last year, mainly in the sectors of electronics, communications and light industry.

Bilateral trade has soared from US$2.91 billion in 2000 to 1 US$8.7 billion in 2005, an average annual rise of 45 percent.

As a symbol of their closer trade ties, the two countries reopened cross-border trade at the Himalayan Nathu La Pass in July last year, 44 years after trade ended in the wake of a short border war.

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

(Xinhua News Agency January 27, 2007)