The Indian Government will set up a consulate general in Guangzhou by the end of this year, senior Indian officials said Thursday.

"We are in touch with the Guangzhou government and in the process of locating a premise for the consulate," said Nirupama Rao, the Indian ambassador to China, during an interview Thursday at Shangri-la Hotel in Shenzhen.

Many Indian companies are doing business in South China at present, and a growing number of Chinese people are traveling to India. Last year, the Indian Embassy issued over 40,000 visas to Chinese citizens, Rao said.

P. Chidambaram, India's finance minister, said the opening of the consulate would further strengthen the bond between India and China.

Although China's trade with India, which stood at US$25 billion in 2006, is low compared to its trade with the United States and South Korea, Chidambaram said he saw huge potential for the trade volume to grow.

"The economies of China and India complement each other," said Chidambaram. While India is strong in such areas as automobiles and steel, China is strong in areas like electronics, he said.

Editor: Yan