India, China eye big gains from Xi's visit

Chinese President Xi Jinping is set to arrive in India on Saturday for a 24-hour visit focused on the BRICS summit and a significant bilateral dialogue with Prime Minister Narendra Modi. This visit, which marks Xi's return to India after a seven-year absence, could pave the way for substantial economic partnership and aim to reduce the massive trade deficit between the two nations.

Xi's delegation, expected to be large, will depart on Sunday afternoon. The meeting between Modi and Xi, which is anticipated to be substantive, will take place during the BRICS summit margins. This meeting is crucial as it holds the potential to stabilize ties that were strained following the Galwan clash in 2020.

Since 2024, when Modi and Xi met in Kazan on the sidelines of the BRICS summit, and again in Tianjin on the sidelines of the SCO summit in 2025, efforts to improve the overall health of ties have been slow but steady. The Line of Actual Control (LAC), the de-facto border between India and China, has remained largely incident-free over the past year.

Ahead of Xi's visit, India and China recently reached an eight-point understanding to improve border management measures. Additionally, both nations are exploring a new framework to facilitate business-to-business exchanges and Chinese investments, aiming to accelerate capital flow. Beijing may announce an investment package for India, potentially including a special economic zone with better sea route access during Xi's visit.

A notable focus will be on pushing for Chinese electric vehicles, including the leading maker BYD, into the Indian market.