India-China Leaders Agree to Boost Trade and Border Peace Amid Thawing Ties

New Delhi: Indian Prime Minister Narendra Modi and Chinese President Xi Jinping on September 12 committed to rebuilding business and transport ties, as both nations seek to mend relations severely strained by a 2020 clash along their disputed Himalayan border. This was according to Reuters. The two leaders met on the sidelines of the BRICS summit in New Delhi, marking President Xi's first visit to India in seven years. Despite easing military tensions, companies in both countries have raised concerns about facing numerous obstacles, including complex administrative procedures, delays in visa issuance, and restrictions on the sale of industrial equipment. However, according to recent statements from India's Ministry of External Affairs, both leaders emphasized the need to continue promoting cultural exchange, connecting business relationships, and increasing travel flexibility between the two countries. Regarding economic and trade relations, the leaders highlighted the necessity of addressing mutual concerns, including trade imbalances and supply chain issues, as well as facilitating meaningful and predictable market access. According to Chinese customs data, bilateral trade between India and China reached a record high of $155.6 billion in 2025. China has become India's largest source of imports, with India's purchases from China rising to approximately $132 billion during 2025-26. Meanwhile, India's exports to China remain significantly smaller, leaving New Delhi with a trade deficit of over $100 billion.