Prime Minister Narendra Modi and Chinese President Xi Jinping are set to hold bilateral talks on Saturday evening on the sidelines of the BRICS Summit in New Delhi, with a wide range of issues expected to be discussed. The meeting comes as India and China seek to consolidate the recent stabilisation in their relationship. From the situation along the Line of Actual Control (LAC) to trade, investment, visas and economic engagement, the talks are likely to cover several areas that continue to shape bilateral ties.
The border situation is expected to remain central to the discussions, with India maintaining that peace and tranquillity along the LAC are essential for the broader relationship to progress. Recent tensions reported in the Taksing area of Upper Subansiri district in Arunachal Pradesh in July, followed by corps commander-level talks, could also figure in the conversation. Both countries have continued to use diplomatic and military channels to prevent misunderstandings and maintain stability along the disputed frontier.
Arunachal Pradesh is another sensitive issue likely to feature in the talks. India maintains that the state is an integral and inalienable part of the country, while China continues to raise objections to India's actions relating to the region. Beijing has particularly objected to India's efforts to standardise the names of places in Arunachal Pradesh, including the latest exercise involving 27 locations. Differences over the eastern sector of the LAC remain part of the larger boundary dispute between the two countries.
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India is also expected to raise concerns over China's planned mega hydropower project on the upper reaches of the Brahmaputra, known as the Yarlung Tsangpo in Tibet. The project has reportedly been estimated at around $137 billion and has raised concerns in India over its potential downstream impact. New Delhi has called for greater transparency and information-sharing regarding developments on transboundary rivers. The issue has gained additional attention amid extreme weather and glacier-related developments in the Himalayan region.
Economic issues are likely to form another major part of the Modi-Xi discussions. India is expected to seek greater access for its products in the Chinese market while raising concerns over the large trade imbalance in China's favour and the reliability of supply chains. Restrictions affecting the export of key technologies, machinery and equipment from China could also be discussed, as Indian industries continue to depend on several Chinese components. Visa restrictions affecting Indian businesspeople, Chinese investment proposals and approval-related hurdles are also likely to be part of the economic conversation.
Recent developments, including reported approvals involving electronics and other sectors, have indicated some movement towards easing restrictions on Chinese investments in India. However, several concerns remain unresolved. Against this backdrop, the Modi-Xi meeting could focus not only on individual disputes but also on establishing a more durable framework for managing differences. The broader objective is expected to be stronger communication and cooperation, with both sides seeking to ensure that disagreements are handled through established mechanisms while creating conditions for a more predictable and stable India-China relationship.
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