NEW DELHI, Dec 20: A Joint Study Group (JSG) to be co-chaired by the Commerce Secretaries of India and Pakistan would, among other things, look at certain preferential trading arrangement on goods , services and investments on a fast-track basis, Indian Minister of Commerce and Industry Kamal Nath said on Monday.

He told the Rajya Sabha, in reply to an MP's question, the JSG would also discuss the possibility of enhancing economic cooperation in other areas. The detailed terms of reference of the JSG would be finalized after further consultations between the two sides in its first meeting likely to be convened shortly, he said.

Explaining the background of the JSG, Mr Nath said it was proposed on the margins of the 4th Saarc Commerce Ministers meeting in Islamabad on November 22-23 when the Commerce Ministers of India and Pakistan met to discuss a roadmap for promoting trade between the two countries. During this meeting, they had agreed to set up the Joint Study Group.

Turning to ties with China, Mr Nath also said that India would make efforts to further expand and diversify its current export basket to China, even as the calendar year's statistics of the Chinese Customs Authorities indicate that bilateral trade between India and China has for the first time already touched $10.84 billion during January to October 2004, showing an impressive growth of 82.53pc over the corresponding period of 2003.

Former Chinese Premiere Mr Zhu Rongji, during his visit to India in January 2002 had proposed increasing bilateral trade to $10 billion. In an interview to the Wen Hui daily of Shanghai here, Mr Nath indicated that even on the basis of the financial year data (2004-05), available for the first five months (April to August'04), two-way trade between India and China was all set to cross the $10 billion mark.