Prime Minister Narendra Modi and Chinese President Xi Jinping held bilateral talks in New Delhi on Saturday on the sidelines of the BRICS summit, marking an important step in efforts to improve India-China relations. Xi's visit is his first to India in seven years and comes after years of tensions following the 2020 military clash along the disputed Himalayan border.
The meeting focused on keeping peace along the border while also expanding trade, business and people-to-people connections. Both countries are trying to cautiously rebuild ties, although major differences over the border and trade remain.
Modi stresses the importance of border peace
For India, maintaining peace along the Line of Actual Control remains central to improving the broader relationship. Modi told Xi that peace and stability at the border are essential for India-China ties to move forward.
The two countries have reduced some of the military tensions that followed the 2020 clash, but a large military presence remains along their roughly 3,800-kilometre disputed border. Concrete progress on the wider boundary dispute remains limited.
Trade is growing, but India's deficit remains a concern
Economic relations were another major part of the discussions. India and China recorded bilateral trade of around $155.6 billion in 2025, but the relationship remains heavily tilted towards China.
India imported about $132 billion worth of goods from China in 2025, creating a trade deficit of more than $100 billion. New Delhi wants better market access and a more balanced trading relationship.
The leaders also discussed supply-chain issues and opportunities to expand business cooperation, indicating that economic ties could become an important part of the diplomatic reset.
India and China want more business and connectivity
Both sides are looking at ways to make business and travel between the two countries easier. Cultural exchanges, business cooperation and people-to-people contacts were among the areas discussed during the meeting.
The easing of tensions has already led to the gradual restoration of some flights and other exchanges. China Southern Airlines, for example, has announced that regular flights between Guangzhou and New Delhi will resume from September 21, after a six-year suspension.
Xi calls for a long-term approach
Xi said China is willing to view relations with India from a strategic and long-term perspective. Beijing has also called for the two countries to manage their differences properly and work together as neighbours and partners.
For India, however, improved relations will depend on whether progress can be made on the border as well as on longstanding economic concerns.
A cautious reset after years of tension
The Modi-Xi meeting does not mean that all India-China disputes have been resolved. Issues involving the Himalayan border, trade, investment, technology and regional security continue to create friction between the two countries.
Still, the meeting represents a significant diplomatic shift. After years of strained relations, both governments are again giving greater importance to direct dialogue and economic engagement.
BRICS gives India a wider diplomatic platform
The meeting took place as India hosts the 2026 BRICS summit in New Delhi. The bloc has expanded well beyond its original members and now includes countries such as Egypt, Ethiopia, Indonesia, Iran and the UAE.
India is using its BRICS presidency to push issues including trade, global governance, supply chains and international cooperation. The summit also gives New Delhi an opportunity to engage simultaneously with China, Russia and other major emerging economies while maintaining its relationships with Western countries.
The Modi-Xi meeting therefore carries significance beyond India-China relations. It shows India's effort to keep diplomatic channels open with Beijing while protecting its own strategic and economic interests.
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