India should learn from China's rich experience in developing its economy and use bilateral trade and economic cooperation as tools to reduce 'problems' of the past, Defence Minister George Fernandes said in Shanghai.

"This is my first visit (to China) and what I have seen has not only been impressive, but also justifies that kind of speeches that I have been making in India in the last few years, asking our people, our workers and for that matter all those who are concerned with developmental activities to take a good look at China and see the progress they have achieved, emulate their work culture instead of merely articulating that the 21st century will be India's century," Fernandes said.

"Work to make those words meaningful," Fernandes said in an exclusive interview in the eastern Chinese metropolis before winding up his week-long visit to China on Sunday.

"Only by reading about China I was talking to people to emulate what China has done. And now I feel that with what I have seen and also through my interactions with the leadership of this country, I will be able to motivate our people more than I have been able to do so far," he said.

"Although this is not my mandate -- to discuss these (economic) issues -- as I am the defence minister, but I feel that I should understand how China is building its economy and how it is tackling its problems so that we can learn from it," Fernandes said.

He said economic issues figured prominently during his discussions with China's top leadership.

"During our discussions, we did identify commonalities in matters of economic development. I believe that there is scope for both countries to learn from each other."

China recorded a stunning 9.9 per cent gross domestic product growth during January-March of 2003 compared to corresponding period of 2002.

Fernandes also noted that in recent times bilateral trade between India and China has expanded substantially and touched a record $4.9 billion in 2002.

"Both sides have come to realise the complementarities of our economic activities and the opportunities that are available," he said.

"In the first two months of 2003, we have done far too better than that of last year and therefore the possibilities for the current year also pointing at a direction of more trade between the two countries," Fernandes said.

As per Chinese customs statistics, bilateral trade for the period January to February 2003 reached $1.058 billion, an increase of 19 per cent over the same period of 2002.

The defence minister, who read the transcript of recent remarks made by Wen on the challenges before China's economy prior to his visit to China, said he found similarity in the issues faced by China and India, the world's most populated nations as well as the fastest growing developing countries.

"The problems he (Wen) mentioned seemed to a mirror image of what problems we in India are grappling with in our economy," he said while referring to huge levels of unemployment, regional disparities, rural development mentioned by the Chinese Premier which were some of his priority concerns.

Fernandes stressed that the future thrust of India-China relations should be based on enhanced bilateral trade, economic relations and people-to-people interaction which said would be the 'route for resolving our problems.'