India's Modi and China's Xi push business links, border peace as ties revive

India's Prime Minister Narendra Modi and China's President Xi Jinping are working to strengthen economic and transport ties between their nations, as reported by New Delhi on Saturday. The two leaders met during a BRICS summit in New Delhi, marking Xi's first visit to India in seven years. Despite a 2020 military clash that damaged ties, tensions have eased, and both countries are focusing on rebuilding relations.

During their meeting, Modi and Xi emphasized the importance of promoting cultural exchanges, business linkages, and greater mobility between their countries. They also stressed the need to address each other's concerns, such as a structural trade imbalance and supply chain issues, and to facilitate meaningful and predictable market access.

Bilateral trade reached a record US$155.6 billion in 2025, with China becoming India's largest source of imports, with Indian purchases from China reaching about $132 billion in the 2025/26 fiscal year. However, India's exports to China remain much smaller, leaving New Delhi with a trade deficit of over $100 billion.

Xi stated that China views its relationship with India from a strategic and long-term perspective, according to Xinhua news agency. The leaders noted that institutional exchanges between the two countries are gradually being restored, and the list of cooperation areas is expanding. Bilateral trade has reached a new high, highlighting the progress made in repairing their strained relationship.

The border between India and China, which spans approximately 3,800 kilometers, remains a contentious issue. Both nations maintain significant military deployments in the Himalayas, and border talks have made sluggish progress. Nevertheless, Modi reiterated that peace in the border areas is crucial for the continued development of bilateral relations. The nuclear-armed neighbors share a frontier marked by long, largely unmarked boundaries.