Buoyed by growth in bilateral trade with China during the first eight months this year, the government on Monday exuded confidence in achieving the $10 billion target set for next year.

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"When the Indian and Chinese premiers set the target of $10 billion of bilateral trade recently, it seemed ambitious, but now it is well within reach. By the end of this calendar year, the bilateral trade will reach $7 billion," Commerce Minister Arun Jaitley said.

The bilateral trade with China grew to $5 billion last year from $2 billion earlier, and it would reach $10 billion next year, he told reporters after addressing a joint meeting of Indo-Romanian Commission, in New Delhi.

The minister, who returned from China recently after inaugurating a 'Made-in-India' show there, said 71 investment proposals were being considered by Beijing.

Asked about the fears being raised by the domestic auto component manufacturers with regard to the free trade agreement, he said "all issues are being taken care of but the idea is to give a fillip to the trade. By 2011, when the agreement comes into effect, the auto ancillary industry would have grown much bigger."

Many multi-national auto makers have set shop in India, and they largely source components from domestic component makers. The Indian auto ancillary industry has progressed so well that there was no need to fear, he added.