Modi, Xi push business links, border peace as India-China ties revive

India and China's leaders, Prime Minister Narendra Modi and President Xi Jinping, reaffirmed their commitment to strengthening business and transport links during a meeting on the sidelines of a BRICS summit in New Delhi. The two nations' ties had been strained by a military clash on their disputed Himalayan border in 2020, but tensions have since eased.

However, businesses in both countries continue to face challenges such as bureaucratic hurdles, visa delays, and restrictions on industrial equipment sales. Both leaders emphasized the importance of cultural exchanges, business linkages, and greater mobility between their nations. Economic and trade relations saw a record US$155.6 billion in 2025, with China becoming India's largest source of imports at about US$132 billion in the 2025/26 fiscal year.

India's exports to China, however, remain significantly smaller, resulting in a trade deficit of over US$100 billion. Xi reiterated that China views its relations with India strategically and long-term, while bilateral trade has reached a new high. The border dispute, which led to a brief but brutal war in 1962, persists, with both nations maintaining substantial military deployments in the Himalayas and slow progress in border talks.