Modi and Xi push business links, but India says border peace remains the foundation of the reset

Trade and travel channels are reopening, yet the relationship still carries a large trade imbalance and unresolved military risk.

THE INDIQA Research DeskPublished 14 Sept 2026Updated 14 Sept 20261 min read

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Narendra Modi and Xi Jinping at Mamallapuram in 2019 - file photo — Prime Minister's Office / Wikimedia Commons - GODL India

Prime Minister Narendra Modi and Chinese President Xi Jinping used their BRICS meeting to support stronger business, transport and people-to-people links after years of strained relations.

Bilateral trade is at record levels, but India's deficit remains large. Business visas and flights are improving, while some investment channels are reopening cautiously.

Modi also stressed that lasting border peace is essential to a durable improvement in ties. That distinction matters: economic normalisation can proceed faster than strategic trust, but it cannot fully substitute for it.

Sources Reuters ↗

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