Media members look on a digital screen showing a meeting between Chinese President Xi Jinping (right) and Indian Prime Minister Narendra Modi (left) during the 18th BRICS Summit held at Bharat Mandapam in New Delhi on September 12, 2026.
Arun Sankar | AFP | Getty Images
Indian Prime Minister Narendra Modi said on Saturday that “peace and tranquility” in the border region is essential for developing bilateral relations with neighboring China.
Relations between the two countries, which sharply deteriorated in the wake of a deadly border skirmish in 2020, have been on ice for more than a year, leading to Chinese President Xi Jinping’s first visit to India in seven years.
In a statement, the Indian government said that during bilateral talks on the sidelines of the BRICS summit, Modi and Xi committed to a “fair, reasonable and mutually acceptable” resolution of the border issue.
The two leaders agreed that the two countries need to take a “strategic, long-term perspective on their relationship” and avoid turning their differences into conflicts.
Border disputes and a trade imbalance that heavily favors China are at the heart of disagreements between the two neighbors.
Border disputes between New Delhi and Beijing date back decades, and the two countries went to war in 1962. But last month, the two sides held their 25th round of talks and reached eight outcomes and agreements to resolve the long-standing border dispute.
Economically, India has a large trade deficit with China and relies on exports from the world’s second-largest economy.
China is India’s largest business partner, with total trade totaling $151.1 billion in the year ending March 2026, a record high. However, New Delhi’s deficit with China also increased from $99.21 billion to a record $112.16 billion.
Prime Minister Modi and President Xi agreed to address concerns about structural trade imbalances, supply chain issues and predictable market access, according to a reading of the bilateral meeting.
Relations between India and China have improved over the past year after talks between Prime Minister Modi and Mr Xi in Tianjin last year. Direct flights between India and China have resumed, several old Silk Road trade routes have opened, and in March India eased rules on investment from Beijing.
