NEW DELHI, Sept 10:
Prime Minister Narendra Modi and Chinese President Xi Jinping are expected to hold a bilateral meeting on the sidelines of the BRICS Summit in New Delhi, in what could be an important step in the gradual improvement of India-China relations following the tensions triggered by the 2020 Galwan clash.
Xi is expected to visit India this week for the BRICS summit, his first visit to the country in seven years. A meeting between the two leaders could provide an opportunity to discuss the future course of bilateral ties, including the border situation, trade, investment and economic cooperation.
The India-China relationship deteriorated sharply after the 2020 border confrontation in eastern Ladakh, in which 20 Indian soldiers and four Chinese soldiers were killed. Since then, the two countries have taken several steps aimed at stabilising ties.
The relationship has shown signs of improvement in recent years. India eased some restrictions on Chinese investment in March, particularly in sectors such as electronics, capital goods and solar cells, and has also been considering faster approvals for selected joint ventures.
Direct flights between India and China have resumed, while New Delhi has eased visa procedures for Chinese business professionals. However, significant challenges remain, particularly in investment, technology transfers and trade.
Chinese companies continue to face scrutiny in India, while some major Chinese firms have held back planned investments. At the same time, Indian businesses have reported difficulties involving visas and delays in Chinese supplies of equipment and components needed for sectors such as solar energy, electronics and infrastructure.
Against this backdrop, a Modi-Xi meeting could assume importance beyond the BRICS agenda. Analysts have pointed to a continuing trust deficit between the two countries, even as both sides seek to prevent tensions from affecting broader economic and diplomatic interests.
The two leaders’ meeting, if held, is therefore expected to be closely watched for indications of progress on border-related issues as well as the restoration of economic and people-to-people ties.