Indian PM optimistic on relationship with China

Indian Prime Minister Manmohan Singh said Wednesday that there were "enormous possibilities" that can be realized from working with China.

"Are India and China in competition? I sincerely believe that there are enormous possibilities for our two countries to work together," Singh said at a gathering of business leaders in Malaysia's administrative capital, Putrajaya.

"I look upon the world as a large enough place to accommodate the growth and ambitions of both India and China, and it is in that sense that we approach India-China relations," he said.

Border disputes, a short war in 1962 and the presence in India of the Dalai Lama have all contributed to an atmosphere of suspicion between the neighbors.

The Indian prime minister is on a three-day visit to Malaysia, after a trip to Japan, where New Delhi agreed to provide a stable supply of rare earth minerals to Tokyo amid a diplomatic row between China and Japan.

Singh also said India seeks cooperative frameworks that would enable New Delhi to be an active member of groupings and communities in the region.

"We will work closely with countries in the regions around us - South Asia, Southeast Asia, West Asia, Central Asia and the Indian Ocean littoral," Singh said.

He added that India and Malaysia can promote regional peace, security and stability.

In a separate report, India signed an international treaty Wednesday governing global civil nuclear liability, a step sought by Washington to reassure US suppliers entering the country's fledgling $150 billion atomic-energy market.

The signing took place at the headquarters of the International Atomic Energy Agency (IAEA) in Vienna, days before US President Barack Obama is set to visit India, where he will meet US business leaders in Asia's third-largest economy.

Agencies