An Indian minister said Thursday that India's relations with China would touch a new high once border trading between the two countries through the famed Silk Route resumes next month.

"We are confident that once trading through the Nathu La pass begins, relations between the two countries would further improve," Indo-Asian News Service quoted Indian Defense Minister Pranab Mukherjee as saying.

"Trading would definitely benefit people on both sides of the border and this could be termed as a strategic partnership," Mukherjee told reporters at an army base in Rangia 60 km west of Assam state's capital Guwahati.

The Chinese and Indian governments initiated talks three years ago on the re-opening of the Nathu La trade route in Sikkim, popularly known as silk route, closed in 1962.

A symbolic ceremony to mark the resumption of traditional trade is being tentatively planned Oct. 2 at the 4,545-meter Nathu La pass on the border between India's Sikkim state and China's Tibet region.

"Border trade between India and China now stands at 13 million US dollars and it is expected to grow to about 20 million US dollars in the next couple of years," the minister said.

Stating that the relations between the two countries have improved, Mukhrejee said, "Both the countries have agreed to sort out any problem through dialogue. There would be more bilateral talks now."

Source: Xinhua