Archive · 12 Sep 2026
Modi and Xi push business links as India-China ties revive
India and China have been trying to improve their relationship.
Their leaders, Narendra Modi and Xi Jinping, met in New Delhi.
They agreed to encourage more business, travel and transport between the countries.
Trade between them reached a record $155.6 billion in 2025.
However, India buys much more from China than China buys from India.
Companies also say rules, visa delays and equipment restrictions make business difficult.
The countries have reduced military tensions since late 2024.
Still, many soldiers remain near their disputed Himalayan border.
Modi said peace along the border is necessary for better relations.
Narendra Modi and Xi Jinping pledged to strengthen business, transport and cultural links during their meeting in New Delhi.
India said both sides would address trade imbalances, supply-chain issues and the need for predictable market access.
Bilateral trade reached a record $155.6 billion in 2025, while India’s trade deficit with China exceeded $100 billion.
Military tensions have eased since late 2024, but substantial deployments and slow border talks continue in the Himalayas.
Businesses still face hurdles including red tape, visa delays and restrictions on selling industrial equipment.
- Who
- Indian Prime Minister Narendra Modi and Chinese President Xi Jinping.
- What
- They pledged to strengthen business, transport and cultural links while addressing trade and border concerns.
- When
- The meeting took place on Saturday; ties began recovering at the end of 2024, and bilateral trade reached a record in 2025.
- Where
- New Delhi, on the sidelines of a BRICS summit.
- Why
- To rebuild relations damaged by the 2020 Himalayan border clash and improve economic cooperation.
Renewed Cooperation
Continuing Obstacles
Economic relations
Renewed Cooperation
India and China’s leaders want more business, transport, cultural exchanges and mobility, while addressing trade and supply-chain concerns.
Continuing Obstacles
Businesses continue to face red tape, visa delays, equipment-selling restrictions and difficulties linked to market access.
Border relations
Renewed Cooperation
Military tensions have eased since the two leaders agreed at the end of 2024 to end their Himalayan stand-off.
Continuing Obstacles
Both countries still maintain substantial military deployments, and border negotiations are making slow progress.
Trade balance
Renewed Cooperation
Bilateral trade has reached a record level, and China says institutional exchanges and cooperation are gradually expanding.
Continuing Obstacles
India’s imports from China far exceed its exports, leaving New Delhi with a trade deficit of more than $100 billion.
- Bilateral trade
- $155.6 billion in 2025, according to Chinese customs data.
- India’s imports from China
- About $132 billion in the 2025/26 fiscal year.
- Trade imbalance
- India’s trade deficit with China exceeded $100 billion.
- Border length
- The countries share a roughly 3,800-km largely unmarked frontier.
- 2020 clash casualties
- Twenty Indian soldiers and four Chinese soldiers were killed.
- Remaining business hurdles
- Red tape, visa delays and restrictions on selling industrial equipment.
- Military situation
- Tensions have eased, but both countries maintain substantial Himalayan deployments and border talks are progressing slowly.