As India and China pledged to accelerate efforts for settlement of their border dispute, President Hu Jintao on Wednesday hoped that the boundary issue will be converted into a "bond of good-neighbourliness and mutually-beneficial cooperation".

Hu said settlement of the boundary issue will contribute to peace and stability in the region and China was ready to work with India to "actively seek a fair, just and mutually-acceptable solution through friendly consultation on an equal footing".

The growth of bilateral ties has made it possible to accelerate the process of settling the border issue, Hu said while delivering a lecture in New Delhi during which he emphasised that China stood for peace and development not only in the region, but all over the world.

The two countries should "step up friendly consultations and work for an early settlement of the boundary issue," the Chinese president said a day after his talks with Prime Minister Manmohan Singh [Images], where they decided to accelerate efforts to resolve the vexed issue.

He said the process for early settlement of the boundary issue, which has been left over from the past, represents the shared wish of the people of the two countries and serves their fundamental interest.

"We hope to turn China-India boundary into a bond of good-neighbourliness and mutually-beneficial cooperation," said Hu, who is on a four-day visit to India since Monday.

In his welcome address, Vice President Bhairon Singh Shekhawat said the two countries should work together for all-round development of relations while "showing sensitivity to each other's concerns and aspirations".

Noting that the two countries have agreed upon the Political Parameters and Guiding Principles, Hu said the early settlement of the boundary issue should be pursued as a "strategic goal" for both the countries.

Pending the final settlement of the boundary issue, the two countries should maintain peace and tranquility in the border area, the Chinese president said.

The two countries on Tuesday decided not to allow the boundary question to hamper development of rest of the relations.

China, he said, will "remain a champion of peace, development and cooperation" and will "continue opening up strategy for mutual benefit and win-win progress".

Underlining that the destinies of India and China and their people are "once again closely bonded together," he said, "the course we chart and the pace of our development have major implications for peace and development of Asia and beyond."

Hu said Sino-Indian relations have gone beyond the bilateral context and acquired a global dimension.

"In enhancing Sino-Indian relationship, we need to both boost bilateral cooperation and be global and future-oriented in outlook," Hu said. 

Welcoming India's growth, Hu said its development will help boost the overall strength and international standing of Asia, increase the strength of developing countries and promote peace and development in Asia and the world.

"The development endeavours of China and India are mutually reinforcing, not mutually exclusive," he said.