During a recent meeting at the BRICS Summit, Modi and Chinese President Xi Jinping discussed the need for a 'fair, reasonable, and mutually acceptable' resolution to long-standing border disputes. This meeting marks a significant moment in the relationship between India and China, which had deteriorated sharply after a deadly border clash in 2020.
Both leaders acknowledged the necessity of maintaining a strategic perspective on their ties and agreed to address issues such as the structural trade imbalance and supply chain concerns. India's trade with China reached a record $151.1 billion for the year ending March 2026, but the trade deficit has also surged to a record $112.16 billion.
The recent diplomatic efforts, including the resumption of direct flights and the reopening of trade routes, indicate a positive shift in relations, which could have implications for regional stability and economic collaboration