NEW DELHI, Nov 28 (Reuter) - Chinese President Jiang Zemin arrived in India on Thursday, saying the purpose of his historic visit was to deepen friendship and increase trust.

Jiang, the first Chinese president to visit neighbouring India, was welcomed by President Shankar Dayal Sharma at the presidential palace in New Delhi.

The two countries, home to one-third of humanity, fought a brief Himalayan border war in 1962 and troops are still deployed along both sides of a rugged line of control.

Only hours before Jiang arrived for a three-day state visit, Tibetan demonstrators demanding China quit their homeland staged a noisy protest in the Indian capital.

"The purpose of my current visit is to enhance understanding, deepen friendship, increase trust and promote cooperation," Jiang said in a written arrival statement.

"Given the present international situation, China and India should join hands and push their existing sound cooperation in the political, economic, scientific, technological, cultural and other fields to a new high," the statement added.

Jiang told reporters: "We have not started our talks yet but I assure you that we will engage in friendly exchange of views in a very intensive way on a wide range of issues."

Earlier, more than 600 protesters burnt an effigy of Jiang and the Chinese flag at a Tibetan refugee camp in New Delhi.

To keep delicate bilateral relations on track, both India and China were expected to avoid dwelling on the contentious issue of Tibet during official talks.

Indian officials said earlier one step towards improving ties could be a troop reduction along a disputed Himalayan frontier, as well as a spur to trade and investment.

Jiang, due to travel to Pakistan on Sunday, will be accompanied by Foreign Minister Qian Qichen, Minister of Foreign Trade Wu Yi, Civil Affairs Minister Doje Cering and the chairman of the Tibet Autonomus Regions Government, Gyaincain Norbu.

Apart from President Sharma and a banquet on Thursday, Jiang will meet Prime Minister H.D. Deve Gowda and Foreign Minister Inder Kumar Gujral on Friday, and address a business forum.

Salman Haider, the highest ranking civil servant in India's foreign ministry, said pacts on bilateral investment protection and strengthening shipping services were being finalised.

Pro-democracy Tibetan exiles said they planned to continue demonstrations throughout Jiang's visit.

No arrests were reported during the protest.

Tibetan Freedom Movement leaders said they planned to present an open letter to Jiang written in their own blood.

The New Delhi office of the Dalai Lama, Tibet's exiled spiritual leader, said it was not encouraging the protests.

India and China signed an agreement in 1993 to ease tension along their 4,000 km (2,500 mile) border during a visit by former prime minister P.V. Narasimha Rao to Beijing.

In August 1995, India and China agreed to pull back their troops from four border posts in India's northeastern state of Arunachal Pradesh, parts of which are claimed by China.

Officials said an agreement on confidence building measures along the line of actual control was expected to be signed during Jiang's visit.

Haider said this would take a step further the agreement on maintenance of peace and tranquility on the border, signed when ex-Prime Minister P. V. Narasimha Rao was in Beijing in 1993.

Foreign ministry officials said China's defence cooperation with Pakistan, India's traditional rival, would be among issues discussed during Jiang's talks with Indian leaders.

Pakistan has enjoyed close relations with China since the 1960s. In recent years, the two countries have been accused of secret nuclear and missile deals, which both have denied.