Moscow: Observing that India's relations with China have been "improving steadily", Prime Minister Atal Bihari Vajpayee has said mutual goodwill and trust will increase as the ties expand and diversify, which should facilitate resolution of their differences on the border problem.

"Our relations with China have been improving steadily over the years," he said in interviews to Russian publications 'Nezavisimaya Gazeta' and 'Rossiskaya Gazeta'.

Vajpayee, who is on a three-day visit to Russia, said the momentum of high level visits between China and India has been maintained.

Noting that the economic content of the relationship was increased substantially, he said this year "we hope to achieve a bilateral trade turnover of $ seven billion".

Vajpayee said various bilateral forums for interaction have been established, covering diverse areas such as trade and investment, policy planning, security and counter-terrorism.

Exchanges in other areas like science and technology, culture, defence, agriculture and investment have also progressed, he said.

The Prime Minister said during his visit to China in June this year, the two sides had agreed to raise bilateral political and economic cooperation to qualitatively higher levels.

"As our relationship expands and diversifies, it will increase mutual goodwill and trust, which should facilitate resolution of the differences between us on the border," he said.

PTI