Keeping the contentious issues between the two on the backburner, New Delhi will go ahead with engaging Beijing on two key strategic forums aimed at enhancing economic and defence ties in the coming days.

Deputy Chairperson of Planning Commission Montek Singh Ahluwalia will lead a high-profile multi-sectoral delegation to hold the first ever India-China Strategic Dialogue scheduled for September 26-27.

The visit is scheduled even as dates are being firmed up for the next round of annual defence dialogue, likely to be held in New Delhi in November.

The two dialogues assumes significance against the backdrop of the unresolved issue of stapled visas to residents of Arunachal Pradesh by Beijing and, of late, the conflict over oil exploration in the South China Sea.

Ahluwalia’s contingent will comprise senior officials from the water resources, commerce and industry, new and renewable energy and IT Ministries, according to sources. The issue of increasing Indian investments and tackling trade deficit with India’s largest trading partner will form the core points of discussion.

Sources said this dialogue was announced last year when Premier Wen Jiabao visited India. Core economic issues with a long term view of the global economic situation will be discussed and a plan formulated for growth and energy efficiency.  This is seen as a calibrated move by New Delhi, which is trying to make inroads into Beijing’s market.

Trade between India and China has grown at 40 per cent year-on-year and stood at $60 billion last year. However, the yawning trade deficit with the Dragon has been a matter of concern for New Delhi. In 2010, the figure stood at $20.02 billion, up from $15.87 billion in 2009. Bilateral trade is expected to reach $100 billion by 2015.

Sources confirmed to The Pioneer that the 4th round of annual defence dialogue with Beijing is likely to be held in New Delhi in November. It’s already being billed the “biggest thing on the bilateral calendar,” after which defence exchanges with Beijing will resume, sources added.

People Liberation Army’s Deputy Chief of General Staff Hou Shusen will lead the Chinese delegation, sources said.

New Delhi had in July sent a high-powered committee, headed by GOC Northern Command, following Beijing’s assurance to Prime Minister Manmohan Singh to not to issue stapled visas to any Indian resident. Beijing, however, continued —issuing stapled visa to a Taekwondo team from Arunachal recently.