"India and China can together reshape the world order," Indian Prime Minister Manmohan Singh said after a welcome ceremony for his Chinese counterpart, Premier Wen Jiabao, at India's presidential palace.
Together the two nations account for one-third the world's population.
The statement announcing the partnership was signed by both premiers and said the agreement would promote diplomatic relations, economic ties and contribute to the two nations "jointly addressing global challenges and threats."
India-China relations have "acquired a global and strategic character," it said.
The Chinese premier was in India for a 4-day visit to create a strategic partnership to end border disputes and boost trade. During his visit to Bangalore, Wen said China and India can together lead the world in information technology.
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