His Chinese counterpart Li Keqiang said: "I am sure it will bring peace and tranquility in border areas."
Li said that "we have more common interests than differences".
"We have agreed that the leadership of both sides have the ability to manage differences along the border," he said.
Manmohan Singh said his talks with Premier Li have been very good and said that when India and China shake hands, the world notices.
Besides inking the Border Defence Cooperation Agreement (BDCA), the two countries also signed MoU on strengthening trans-border rivers, another one on cooperation on road transportation while a third was on power equipments. An MoU on cultural exchanges was also inked.