China and India will enhance mutual trust and continue their efforts on border defense cooperation to settle the boundary issue, according to an agreement signed between the two sides on Wednesday.

Chinese Premier Li Keqiang said at a press briefing after the signing ceremony of the Border Defense Cooperation Agreement that the two nations have more common interests than disagreements and they have the ability to manage border disputes and sustain stability in the border area, reported the Xinhua News Agency.

No further details on the agreement were immediately available, but the two countries will promote cooperation on defense exchanges and military exercises, as a joint counter-terrorism exercise will be held in November, according to a joint statement - A Vision for Future Development of China-India Strategic and Cooperative Partnership - that was also signed Wednesday.

The latest border agreement was built on previous ones signed in 1993, 1996 and 2005, which recognize the principle of mutual and equal security regarding the border issue that was rooted in a brief war in 1962, Wang Dehua, head of the Southern and Central Asian Studies Institute of the Shanghai Institute for International Strategic Studies, told the Global Times.

"The agreement would be targeted more at new disputes rising up in the border areas including frequent patrolling from the two sides," Sun Shihai, vice director of the Institute of Asia-Pacific Studies at the Chinese Academy of Social Sciences, told the Global Times.

Wang noted that the agreement is crucial for maintaining long-term peace and order on the borders after the military stand-off in the western section of the Sino-Indian border in April.

"Stability is essential for the development of the border area. It is wise to shelve but acknowledge the disputes and take mutual understanding and mutual accommodation," Wang said.

On boosting economic and trade cooperation, the much anticipated Chinese industrial park in India was discussed at the meeting. Li said that China would like to enhance cooperation with India on infrastructure construction to push forward the development of the BCIM (Bangladesh, China, India and Myanmar) Economic Corridor.

The trade volume between China and India is expected to reach $100 billion by 2025, but India's trade deficit was recorded at $40 billion in 2012-13, Indian newspaper The Financial Express quoted official figures as saying.

"The industrial park could help reduce the deficit and increase the bilateral trade with its zero tax rates, but the issue of visas should also be simplified to facilitate the trade," Wang noted.

Prime Minister Singh arrived in Beijing on Tuesday for a three-day official visit to China. This is the first time since 1954 that the Chinese premier and his Indian counterpart have met in each other's country in the same year.