Stress border peace; flag trade imbalance
New Delhi: Prime Minister Narendra Modi and Chinese President Xi Jinping on Saturday stressed the need for a strategic and long-term approach to India-China relations, agreeing that differences between the two countries should not turn into disputes while calling for progress on the boundary question and resolution of trade and supply-chain concerns.
The two leaders held bilateral talks on the sidelines of the 18th BRICS Summit in New Delhi, with the Ministry of External Affairs (MEA) saying they “welcomed the steady progress” in bilateral relations since their last meeting in Tianjin in August 2025.
“Differences should not become disputes,” the MEA said in its account of the meeting, adding that Modi emphasised that the relationship should be guided by “mutual respect, mutual sensitivity and mutual interest”.
Modi also stressed that peace and tranquillity in the border areas remained an essential basis for the continued development of bilateral ties and called on both sides to adhere to existing agreements and understandings on border-related issues.
The two leaders reaffirmed their commitment to pursuing a “fair, reasonable, and mutually acceptable” resolution of the boundary question, while viewing it in the context of their broader bilateral relationship and the long-term interests of the two countries.
Xi, for his part, said China-India relations had developed with both sides keeping in mind their long-term development from a strategic perspective. He noted that despite differences, the two countries had been able to “support and help each other to achieve common development”.
Economic ties figured prominently in the discussions, with the two sides agreeing on the need to address concerns over the structural trade imbalance, supply-chain issues and market access.
“The two leaders… underscored the need to further promote cultural exchanges, business linkages, and greater mobility between the two countries,” the MEA said.
On trade and economic relations, they called for measures to address each other’s concerns, including the widening trade imbalance, supply-chain vulnerabilities and the need for “meaningful and predictable market access”.
India’s trade deficit with China rose to $112.16 billion in 2025-26 from $99.21 billion in 2024-25. Bilateral merchandise trade increased 18.31 per cent to $151.10 billion during the year, with Indian exports to China rising 36.62 per cent to $19.47 billion while imports climbed 16.03 per cent to $131.63 billion.
The widening deficit has become a key concern for India, although a substantial share of Chinese imports comprises industrial inputs, components and capital goods used by Indian manufacturers.
Four sectors—electronics, machinery, computers and organic chemicals—account for roughly 66 per cent of India’s imports from China, according to a GTRI report. China also remains a major source of critical minerals and other inputs important to India’s electronics, clean-energy, pharmaceutical and defence-related supply chains.
The two leaders also agreed to expand common ground on regional and global issues and cooperate in addressing shared challenges.
Modi thanked China for its support and cooperation during India’s BRICS chairship and appreciated its contribution to the success of the summit.
“Prime Minister appreciated China’s support for India’s BRICS chairship and its contributions towards the success of the BRICS Summit-2026,” the MEA said.
External Affairs Minister S Jaishankar, National Security Advisor Ajit Doval and other senior officials were present during the meeting.
Earlier, Modi welcomed Xi and other BRICS leaders at the summit venue, with the iconic Ramanathaswamy Temple in Rameswaram forming the backdrop for the ceremony. Modi was also seen briefly explaining the significance of the temple backdrop to Xi.
The meeting came amid continuing efforts by India and China to stabilise ties following the deadly Galwan clashes of 2020. The two leaders had a brief interaction at the Shanghai Cooperation Organisation summit in Bishkek on August 31 and had earlier met on the sidelines of the SCO summit in Tianjin in August 2025.
Xi’s current visit marks his first trip to India in nearly seven years and comes as New Delhi and Beijing seek to consolidate the recent improvement in bilateral ties while continuing to address outstanding border, economic and trade concerns.
