Xi sets commercial terms for engagement with India

Chinese President Xi Jinping and Indian Prime Minister Narendra Modi who met on the sidelines of the Shanghai Cooperation Organization (SCO) today discussed economic and defence issues, including the vexed subject of terrorism and how it can be effectively tackled.

"A number of areas came up for discussion which included economic cooperation specifically trade, investment and connectivity, the establishment of industrial parks and cooperation in railways. There were a number of security and defence issues including counter terrorism cooperation, security cooperation, defence exchange also," said foreign secretary S Jaishankar

But, more importantly, as India formally joined the SCO, which will now obligate the country to conduct joint military exercises with Pakistani troops, a sceanario that will further confound India's foreign policy, the Chinese leader made it clear that for normalcy in bilateral relations, both sides should work to "appropriately" manage differences.

Besides, the two countries should strengthen multilateral consultation, and manage sensitive issues.

President Xi stressed on boosting trade and investment cooperation so that the two countries can reap "early stage profits" from large-scale projects.

He also favoured early completion of the China-India-Bangladesh-Myanmar connectivity project in order to boost trade between the four countries.

The two leaders also discussed Bollywood film 'Dangal' amidst a detailed discussion on cultural cooperation. Besides the two leaders discussed economic and defence issues, including the vexed subject of terrorism and how it can be effectively tackled.