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Xi Jinping's visit: India China set to sign key deals Xi Jinping's visit: India China set to sign key deals
(about 3 hours later)
India and China are expected to sign key economic deals on the second day of a visit by the Chinese President Xi Jinping, as both sides try to reset a troubled relationship.India and China are expected to sign key economic deals on the second day of a visit by the Chinese President Xi Jinping, as both sides try to reset a troubled relationship.
A border row continues to cause tensions. India recently accused China of territorial intrusions. A border row continues to cause tension, with India accusing China of fresh territorial intrusions in Ladakh.
India PM Narendra Modi raised the dispute with Mr Xi on Wednesday.India PM Narendra Modi raised the dispute with Mr Xi on Wednesday.
China is one of India's top trading partners but they vie for regional influence and dispute their border.China is one of India's top trading partners but they vie for regional influence and dispute their border.
India's foreign ministry spokesman Syed Akbaruddin told the AFP news agency that the issue of Chinese incursions was discussed on Wednesday evening. India's foreign ministry spokesman Syed Akbaruddin told the AFP news agency that the issue of Chinese incursions was discussed on Wednesday evening.
There have been reports in the Indian media of Chinese troops trying to construct a temporary road into Indian territory across the Line of Actual Control (the de facto boundary) in the Ladakh region over the past week.There have been reports in the Indian media of Chinese troops trying to construct a temporary road into Indian territory across the Line of Actual Control (the de facto boundary) in the Ladakh region over the past week.
Sanjoy Majumder, BBC News, Delhi
The face-off between Chinese and Indian troops along their disputed border is being widely reported in India, with some suggesting that it could derail talks between the two countries. That is highly unlikely.
The border dispute is an old one, dating back to 1914 when Britain, India's former colonial power, signed an agreement with Tibet making the McMahon Line the de-facto border between the two countries. China has always rejected this.
Both sides also claim each other's territory - India, the Aksai Chin region of Kashmir and China refuses to recognise Ladakh and Arunachal Pradesh as part of India.
There have been several incursions of Chinese troops across the border in these areas which have been highlighted by the Indian media. Diplomats from both sides, however, play down these transgressions. The simple fact is that there are differing perceptions on where the border lies - what India believes is Chinese troops crossing into their territory is seen by Beijing as the exact reverse: Indian troops occupying Chinese land.
It is extremely unlikely that these confrontations will lead to an outright conflict or even sour ties between the two countries. But they do reflect the suspicion and distrust that exist on both sides of the border.
Mr Xi began his visit in Gujarat, the home-state of Indian PM Narendra Modi, on Wednesday, before heading to the capital, Delhi.Mr Xi began his visit in Gujarat, the home-state of Indian PM Narendra Modi, on Wednesday, before heading to the capital, Delhi.
The two sides signed several agreements, including one to set up a Chinese-backed industrial park in Gujarat. China is expected to pledge billions of dollars in investment to help bring India's ageing railway system up-to-date with high-speed links, as well as manufacturing and infrastructure projects.
On Wednesday, the two sides signed several agreements, including one to set up a Chinese-backed industrial park in Gujarat.
The BBC's Sanjoy Majumder in Delhi says China is looking for new offshore manufacturing bases as it faces growing labour costs and other issues at home.The BBC's Sanjoy Majumder in Delhi says China is looking for new offshore manufacturing bases as it faces growing labour costs and other issues at home.
Indian and Chinese companies have also signed preliminary deals worth more than $3bn (£1.8bn) in aircraft leasing and telecoms, among other sectors.Indian and Chinese companies have also signed preliminary deals worth more than $3bn (£1.8bn) in aircraft leasing and telecoms, among other sectors.
Indian media reports say China is expected to pledge funds to help update India's ageing railway, as well as manufacturing and infrastructure projects. Despite the continuing tensions, trade between India and China has risen to almost $70bn (£43bn) a year, although India's trade deficit with China has climbed to more than $40bn from $1bn in 2001-2002.
Despite the continuing tensions, trade between India and China has reached close to $70bn (£43bn) a year, although India's trade deficit has climbed to more than $40bn from $1bn in 2001-2002.