Indian Prime Minister Narendra Modi said that “peace and tranquility” in border areas is essential for developing bilateral ties with China. The remark came after his meeting with Chinese President Xi Jinping on the sidelines of the BRICS summit.
According to a statement from the Indian government, the two leaders reaffirmed their commitment to resolving border issues in a “fair, reasonable, and mutually acceptable” manner. They also agreed that New Delhi and Beijing should view their relationship from a strategic and long-term perspective and should not allow differences to turn into disputes.
Xi Jinping is visiting India for the first time since 2019. Relations between the two countries deteriorated sharply after a deadly border clash in 2020, but they have been improving gradually for more than a year.
Border tensions between New Delhi and Beijing stretch back decades and led to war in 1962. Last month, the two sides held their 25th round of talks and reached eight points of outcomes and consensus aimed at settling their long-running boundary dispute.
Economic frictions remain an important part of the relationship. China is India’s largest business partner, with total trade reaching a record $151.1 billion in the year ending March 2026. At the same time, New Delhi’s trade deficit with Beijing widened to a record $112.16 billion, up from $99.21 billion.
According to the meeting readout, Modi and Xi agreed to address concerns over the structural trade imbalance, supply chain issues and predictable market access.
India-China ties have improved since Modi and Xi met in Tianjin last year. Direct flights between the two countries have resumed, several old Silk Road trade routes have reopened, and in March India eased rules governing investment from Beijing.
