India-China Ties Take Centre Stage at BRICS as Modi and Xi Push for Border Peace, Trade and Strategic Reset
India and China have signalled a fresh effort to stabilise their relationship after Prime Minister Narendra Modi and Chinese President Xi Jinping held detailed bilateral talks on the sidelines of the 18th BRICS Summit in New Delhi. The meeting focused on the boundary dispute, economic relations, people-to-people exchanges and the broader strategic direction of ties between the two Asian powers.
The talks marked Xi Jinping’s first visit to India in seven years and came as relations between the two countries have gradually improved following years of military tensions along the Line of Actual Control. Both leaders agreed that India and China should take a strategic and long-term view of their relationship and stressed that differences should not be allowed to turn into disputes.
A central issue remained the disputed Himalayan boundary. Modi emphasised that peace and tranquillity in the border areas are an essential foundation for the continued development of bilateral relations. The two leaders also reaffirmed their commitment to pursuing a fair, reasonable and mutually acceptable settlement of the boundary question while observing existing agreements and understandings.
India outlined what it described as three guiding principles for the relationship — mutual respect, mutual sensitivity and mutual interest. The emphasis reflects New Delhi’s continued position that improvement in wider bilateral relations must be accompanied by stability along the border.
China, meanwhile, placed greater emphasis on viewing the two countries as partners rather than rivals. Chinese Foreign Minister Wang Yi subsequently described this as the “most important consensus” reached by Modi and Xi, saying the two sides should focus on cooperation and development while managing their differences.
The economic relationship was another major component of the discussions. India and China agreed on the need to address concerns surrounding structural trade imbalances, supply-chain issues and market access, while seeking more predictable conditions for businesses on both sides.
The two governments also pointed to improving people-to-people contacts. Greater mobility, cultural exchanges and business links were identified as areas where cooperation could expand, alongside efforts to improve the broader public perception of bilateral relations.
The diplomatic engagement follows a period of gradual normalisation that began after the Modi-Xi meeting in Kazan in October 2024. Subsequent steps have included progress on border disengagement and the revival of some direct people-to-people links, including flights and the Kailash Mansarovar pilgrimage.
Yet significant challenges remain. India and China continue to have an unresolved boundary dispute, and the two countries’ statements after the latest meeting revealed a subtle difference in how they view the relationship between border negotiations and broader bilateral cooperation.
China’s position stresses that development of bilateral relations and resolution of the boundary issue can proceed in parallel. India’s formulation places particular emphasis on maintaining peace and tranquillity along the border as a prerequisite for the wider relationship to advance.
The difference is significant because relations plunged after the deadly Galwan Valley clash in 2020, when 20 Indian soldiers and four Chinese soldiers were killed. The confrontation triggered a prolonged military standoff and severely damaged political and economic trust between the two countries.
Beyond the bilateral relationship, Modi and Xi also discussed cooperation in the Global South and multilateral institutions. Both sides agreed to expand common ground on regional and global issues, while supporting each other’s BRICS presidencies and strengthening coordination in forums including the United Nations, G20 and Shanghai Cooperation Organisation.
The BRICS meeting therefore represents more than another diplomatic encounter between Modi and Xi. It signals an attempt by both governments to prevent strategic rivalry from overwhelming economic and regional interests, while keeping the sensitive border question under active diplomatic management.
For India, however, the emerging reset is likely to remain closely tied to conditions along the frontier. For China, the priority appears to be rebuilding a broader relationship in which competition does not prevent cooperation. Whether the latest political understanding can translate into lasting progress on the ground will determine how durable the new phase in India-China relations becomes.
