Modi, Xi push business links, border peace as ties revive

NEW DELHI: Indian Prime Minister Narendra Modi and Chinese President Xi Jinping met on the sidelines of the BRICS summit in New Delhi on Saturday, pledging to strengthen business and transport links between the two nations. The leaders emphasized the importance of cultural exchanges, increased mobility, and addressing each other's concerns in economic and trade relations.

Bilateral trade reached a record USD 155.6 billion in 2025, with China now India's largest source of imports, accounting for about USD 132 billion in the 2025/26 fiscal year. However, India still faces a trade deficit of over USD 100 billion, as its exports to China remain relatively small. Both nations have a long history of tension, with a brief but brutal border war in 1962 and a more recent skirmish in 2020 that killed 20 Indian and four Chinese soldiers.

Ties have shown signs of recovery since Xi and Modi agreed to end their military standoff in the western Himalayas at the end of 2024. Despite the progress, both countries continue to maintain significant military presence along the border, and talks on resolving border issues remain slow.