New Delhi, Dec 16 (IANS) India and China Thursday agreed to establish a strategic economic dialogue and set a new bilateral trade target of $100 billion by 2015 to bridge the trade deficit.

A joint communique was released after one hour of formal talks between Indian Prime Minister Manmohan Singh and visiting Chinese Premier Wen Jiabao.

They signed six agreements in diverse areas ranging from media and cultural exchanges to green technologies and agreed to activate a hotline between their prime ministers.

The bilateral document said both sides had "set a new bilateral trade target of $100 billion by 2015". "The two sides agreed to take measures to promote greater Indian exports to China with a view to reduce India's trade deficit," it added.

Besides, there was also a decision to establish a "Strategic Economic Dialogue to enhance macro-economic policy coordination, to promote exchanges and interactions and join hands to address issues and challenges appearing in the economic development and enhance economic cooperation".

They welcomed the opening of the telephone hotline between the prime ministers and agreed on regular consultations between the two leaders on issues of importance to both countries.

"There is enough space in the world for the development of both India and China and indeed enough areas for India and China to cooperate," the joint communique said.

Further, India welcomed Chinese investment in infrastructure development in roads, railways and manufacturing sector.

"The two sides agreed to encourage greater mutual investment and project contracting cooperation between businesses of the two countries, appropriately handle economic and trade frictions and differences and jointly oppose protectionism in all forms," it added.

An India-China CEO's forum has been set up to deliberate on business issues and make recommendations on expansion of trade and investment cooperation.