Exclusive: On the table for Xi-Modi meet, a strategic economic dialogue

Sources told The Indian Express that the two sides are working on launching a strategic economic dialogue, signalling a thaw in the relationship that has been plagued by high trade deficit, issues of market access to Chinese market, lack of investments in India, restrictions on visas to Indian and Chinese businesses and the activities of Chinese companies in India.

The two leaders are also expected to discuss and review the recent boundary talks in Beijing between their Special Representatives, NSA Ajit Doval and Chinese Foreign Minister Wang Yi, and endorse the decision to advance discussions on “an early and substantial harvest” of boundary delimitation and border management.

At the invitation of Prime Minister of the Republic of India Narendra Modi, President Xi Jinping will attend the 18th BRICS Summit in New Delhi from September 12 to 13. pic.twitter.com/abKPwOyqRm

— CHINA MFA Spokesperson 中国外交部发言人 (@MFA_China) September 10, 2026

Among the eight outcomes and consensus reached at the Beijing talks were agreements on two new border military hotlines in the eastern and middle sectors, two new meeting points for military commander-level meetings, and the trans-border river meeting.

Xi’s participation in the BRICS summit is an important signal to India – he had skipped the G20 summit at the Bharat Mandapam in New Delhi three years ago amid strained ties between the two countries.

In October 2024, Xi and Modi met in Russia’s Kazan on the sidelines of the BRICS summit. Following their discussions, the two sides completed the process of disengagement of troops along the LAC in eastern Ladakh in November that year. Ever since, incremental steps have been taken to stabilise the ties. This has led to resumption of direct flights, easing of visa restrictions, revival of the Kailash Mansarovar pilgrimage and easing of curbs on Chinese investments.

But pressing issues remain, including visa denials and restrictions on Indian businesses, challenges in the sharing of trans-boundary river data, and the active collusion of China and Pakistan during the India-Pakistan hostilities that followed Operation Sindoor in May 2025.

Delhi police personnel deploy ahead of the BRICS Summit 2026 near Bharat Mandapam in New Delhi. (ANI Photo/Naveen Sharma)

The Indian side is expected to raise these concerns with the Chinese leadership. The issue of de-escalation on the LAC is also going to be part of the conversation. It is estimated that 50,000 troops are still deployed on either side of the LAC.

The Chinese, on the other hand, have concerns regarding the limiting of Chinese businesses, despite the lifting of restrictions, actions and investigations against Chinese firms operating out of India.

An illuminated Rail Bhavan in New Delhi Thursday, ahead of the BRICS Summit. (Express photo by Gajendra Yadav)

The laundry list of concerns are expected to come up during the bilateral talks. But experts are cautioning against high expectations from the summit-level meeting.

Framing the challenge, Gautam Bambawale, former Ambassador of India to China, told The Indian Express, “What the PLA did with their actions in eastern Ladakh, and it has continued, set back the bilateral relationship by about 10 steps. And since 2024, when we started repairing the relationship, maybe we have moved three steps ahead. But the net is still negative, so there’s a lot of work to be done.”

Xi last visited India in 2019 for an informal summit with Modi in Mamallapuram near Chennai. (ANI File Photo)

While the bilateral talks between the two leaders will be significant, they will have shared concerns on energy security and the impact of the war in West Asia. This is expected to figure during the discussions, sources said, and will also be reflected in the BRICS discussions.

Both Xi and Modi have shared concerns on geopolitical issues arising from the conflict and the partial closure of the Strait of Hormuz, the challenges stemming from US President Donald Trump’s tariff wars.

Along with Russian President Vladimir Putin, Modi and Xi will be looking at exchanging notes on how to navigate the volatile and disruptive geoeconomics due to the Trump administration’s moves. Officials said while “there will be no ganging up against the West”, the gathering will be a powerful signal to the US that these countries have “options” in geopolitics.