Prime Minister Narendra Modi during a bilateral meeting with Chinese President Xi Jinping on the sidelines of the 18th BRICS Summit in New Delhi
India made peace and tranquillity along the border and correction of the structural trade imbalance with China central to the further development of bilateral ties, as Prime Minister Narendra Modi and Chinese President Xi Jinping, on Saturday, held their first meeting in India since the 2020 Galwan clash.At their talks on the sidelines of the BRICS Summit in New Delhi — Xi’s first visit to India in seven years — the two leaders committed to a “fair, reasonable and mutually acceptable” resolution of the boundary question and agreed to address each other’s concerns on trade, including the widening imbalance, supply-chain issues and the need for meaningful and predictable market access.“Prime Minister emphasised that peace and tranquility in the border areas remains an essential basis for the continued development of bilateral relations. He underlined the need for both sides to observe existing agreements and understandings on border related issues,” according to a statement issued by the MEA following the meeting between the two leaders.The Modi-Xi talks, which took place on the sidelines of the ongoing BRICS Summit hosted by New Delhi, were crucial as they centred on the fragile thaw in bilateral relations following the 2020 military standoff along the Line of Actual Control (LAC). While both nations have made diplomatic and military strides to stabilise ties and restore periodic high-level exchanges, underlying friction continues to obstruct deeper economic engagement.Little progressDespite an eight-point consensus arrived recently at the meeting of national security advisor Ajit Doval and China’s Foreign Minister Wang Yi at the Special Representatives’ talks in Beijing on August 25, further discussions have yielded little progress, a source tracking the matter said.“Beijing has been pushing for a further easing of investment restrictions on Chinese companies, but New Delhi wants greater peace at the borders before making substantial commitments,” the source added.India’s major concerns on the rising trade deficit with China and various restrictions placed by Beijing affecting India’s supply chains, such as export curbs on rare-earth elements and critical machinery, were also taken up at the meeting.“On economic and trade relations, they underlined the need to address each other’s concerns, including structural trade imbalance and supply chain issues, and facilitation of meaningful and predictable market access,” the MEA statement highlighted.India-China bilateral trade reached a record $151.10 billion in FY26 but it was heavily skewed with Chinese exports to India at $131.63 billion leading to a trade deficit for India at $112.16 billion.Published on September 12, 2026
