India Thursday expressed concern over the incursion by Chinese troops on the border and said such incidents should be resolved soon as peace and tranquillity on the border was essential for boosting bilateral economic cooperation.
Prime Minister Narendra Modi, in a media address after talks with Chinese President Xi Jinping, also suggested that clarifications on the line of Actual Control (lAC) "would be of use" in solving the festering border question and it should be restarted again.
"I have suggested that the clarifications on the lAC will be of lot of use, and should be started again. It was stopped for some years," Modi said.
Modi's comments come amid reports that hundreds of Chinese troops have intruded into the Chumar sector in ladakh, the second instance this week.
Chinese President Xi said both sides have agreed to "continue to be sensitive and respectful to each others' sensitivities and concerns and progressively handle the outstanding issues in a positive attitude".
But he reiterated the Chinese position that the boundary question is "left over from history" and both sides have made progress in maintaining peace and tranquillity in the border areas.
Referring to the latest incursion by hundreds of Chinese troops in Chumar in ladakh, Xi said: "Since the boundary is yet to be demarcated, sometimes there could be instances (of transgressions) and both sides are fully capable to manage to resolve the issues through border-related mechanism so that such incidents have little impact on ties."
He said China would work with "friendly determination" with India to settle the boundary question at an early date and for peace and tranquillity on the border.
He said both are important neighbours and have "some outstanding issues" but both should work actively and seriously together to handle them and seek amicable relations with each other.
Coinciding with the Chinese president's visit, Tibetans in the capital held vociferous protests demanding freedom for Tibet. The protests were held as Modi and Xi were holding talks at Hyderabad House.
Modi-Xi talks set agenda to further India-China economic ties
Prime Minister Narendra Modi, after his talks with President Xi Jinping, Thursday said a new chapter in India-China economic ties has opened with Beijing assuring greater access for Indian goods and capital while also committing an investment of $20-billion over the next five years.
With economic relations on top of the agenda for the talks between the two leaders, the prime minister said he was particularly happy that China had agreed for the setting up of two industrial parks in India and look into how the issue of trade deficit can be addressed.
"I raised the issue of trade imbalance between our two countries. I urged President Xi to give our companies better market access and investment opportunities in China," Modi said after his talks here with the Chinese side.
"The Chinese president assured that he will take concrete steps in this regard."
India-China bilateral merchandise trade stood at $65.88 billion in 2013. While India’s exports to China were valued at $14.50 billion, its imports were much larger at $51.37 billion, resulting in a large trade deficit.
Modi, while delivering his statement before the media after the talks at the Hyderabad House here, said India and China have much scope to increase economic cooperation, as it was way below the potential.
President Xi reciprocated what was said by Modi. "China and India will act as twin engines in spearheading economic growth in the region," the Chinese premier said. "China will invest $20 billion in India in five years," he added.
"We will also align our strategy to strengthen rail infrastructure in India."
The prime minister said he was pleased with the inking of agreements between the two sides for two Chinese industrial parks in India and Beijing's commitment to invest around $20 billion in India over the next five years.
"I invited Chinese investments in infrastructure and manufacturing sectors. I am glad that two Chinese industrial parks will be built in India," he said, adding: "The five-year economic and trade development plan is an important step."
Among the 12 pacts that were signed between the two sides Thursday, those on economic ties included cooperation in railways, outer space and culture, commitment for two Chinese industrial parks and $20-billion worth Chinese investments in India over the next five years.
