Indian Prime Minister Narendra Modi stated that ‘peace and tranquility’ in the border region are crucial for the development of India-China relations. This comes as Chinese President Xi Jinping visits India, marking his first trip since 2019.
Both leaders committed to resolving border issues in a mutually acceptable manner and agreed to manage their differences strategically, preventing them from becoming disputes. The economic ties, characterized by a large trade deficit for India, were also discussed, with an agreement to address trade imbalances and market access.
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Indian Prime Minister Narendra Modi emphasized on Saturday that the bedrock of robust India-China relations lies in maintaining 'peace and tranquility' along their shared border. This statement comes as Chinese President Xi Jinping embarks on his first visit to India since 2019, signaling a potential thaw in ties that were significantly strained after a deadly border clash in 2020.
Speaking on the sidelines of the BRICS Summit, both Modi and Xi reportedly committed to finding a resolution to border disputes that is 'fair, reasonable, and mutually acceptable.' According to a release from the Indian government, the leaders agreed on the importance of adopting a 'strategic and long-term perspective' to manage their bilateral relationship, ensuring that existing differences do not escalate into full-blown disputes.
Border disputes have historically been a contentious issue between the two Asian giants, with a major conflict occurring in 1962. In a recent development, the 25th round of talks between special representatives of India and China concluded with an agreement on eight points aimed at resolving long-standing border issues.
Economically, the relationship is marked by a significant trade imbalance heavily favoring China. Despite this, China remains India's largest business partner, with total trade reaching a record $151.1 billion in the fiscal year ending March 2026. However, India's trade deficit with China also climbed to a record $112.16 billion. During their meeting, Modi and Xi discussed addressing concerns related to structural trade imbalances, supply chain vulnerabilities, and ensuring predictable market access.
The recent improvement in India-China relations has been evident in the resumption of direct flights, the reopening of some historical Silk Road trade routes, and India's easing of investment regulations from Beijing in March. These steps indicate a concerted effort from both sides to move past recent difficulties and foster a more stable and cooperative relationship.
