Chinese Premier Wen Jiabao said on Wednesday history had proved that common development between China and India was beneficial to both.

"The good-neighborly friendship and common development are in accordance with the interests of the two countries, of Asia and of the world at large," Wen said when meeting with Indian Foreign Minister Somanahalli Mallaiah Krishna.

This year marks the 60th anniversary of the establishment of China-India diplomatic ties. Wen said now the bilateral relationship had stepped into a new phase of mature and stable growth.

China would work with India to increase mutual trust and properly solve border issues between the two nations, Wen said.

He said China hoped the two nations would also expand cooperation and coordination both bilaterally and internationally.

"This will help advance the bilateral strategic cooperative partnership, and also contribute to the revitalization of Asia and the harmonious and sustainable development of the world at large," Wen noted.

Krishna is here on an official visit at the invitation of Chinese Foreign Minister Yang Jiechi.

After the talks earlier Wednesday, the two ministers signed the agreement between the two governments on the establishment of the direct secure telephone link between the Chinese Premier and the Prime Minister of India.

"The establishment of this hotline indicates that the China-India relationship would become closer," Wen told Krishna.

Echoing Wen, Krishna said achieving common development between India and China would positively influence the whole world.

To develop friendly cooperation between the two countries was in accordance with the common interests of both sides, he said, noting that India greatly valued its ties with China.

India was ready to work with China to deepen exchanges and win-win cooperation, and to strengthen coordination on important regional and international issues, he said.

The foreign minister also pledged to work with China to solve problems between the two nations through peaceful negotiation, in a bid to push forward bilateral ties.

The discussions between the minister and the Chinese side were "cordial, useful, constructive and wide-ranging," Indian Foreign Secretary Nirupama Rao told reporters at a press briefing Wednesday evening.

Rao said Krishna's visit was focused on furthering "mutual understanding, trust and confidence."

Rao said the two countries agreed to continue the spirit of cooperation which was showed at the Copenhagen summit on climate change and the G20 summit last year.

Two sides agreed to work on intensifying people-to-people exchanges, in areas such as education and media, so as to promote mutual understanding, he said.

China and India had seen a flurry of high-level contacts, including Vice Premier Hui Liangyu and senior Chinese legislator Han Qide's visits to India.

A number of dialogues are in place between the two countries, such as the mechanism of the China-India boundary talks.

Krishna is scheduled to conclude the four-day visit on Thursday.