Chinese President Xi Jinping is expected to visit New Delhi this week for the BRICS summit, marking his first trip to India in seven years. The visit could help improve diplomatic relations between the two Asian powers, although there is still little evidence of a similar improvement in their business relationship.
Companies in India and China continue to encounter several difficulties. These include delays in investment approvals, visa related problems and restrictions involving industrial equipment. Analysts say these challenges show that progress in diplomatic relations has not yet translated into stronger economic cooperation.
Xi is expected to travel to Delhi this weekend for the annual BRICS meeting, although Beijing has not officially confirmed his visit. It is also unclear whether he will hold talks with Indian Prime Minister Narendra Modi. Such a meeting could play an important role in determining the next phase of relations between the two countries.
India and China have maintained a cautious relationship for decades. Their ties were further damaged after the 2020 border confrontation, in which 20 Indian soldiers and four Chinese soldiers were killed. Relations have gradually improved in recent years, particularly after Modi's visit to China last year, while both countries are also dealing with changing relations with the United States.
Lin Minwang, a South Asia specialist at Shanghai's Fudan University and a former diplomat at the Chinese Embassy in New Delhi, said Beijing appears interested in improving relations. However, he noted that it remains uncertain how far India is prepared to go, making a major breakthrough less likely in the immediate future.
Harsh Pant, vice president of the Observer Research Foundation in New Delhi, said the level of mistrust between India and China remains significant. He argued that China's strong economic position could give it an opportunity to become a dependable partner, particularly as both countries face the impact of US trade policies.
India began relaxing some restrictions on Chinese investment in March. The changes mainly covered areas such as electronics, capital goods and solar cell production. New Delhi is also considering quicker approval procedures for certain partnerships involving Indian and Chinese companies.
Despite these steps, major Chinese businesses have remained cautious about expanding their presence in India. Regulatory concerns and continued scrutiny have made it difficult for economic relations to return to earlier levels.
The situation highlights the difference between improving diplomatic communication and rebuilding confidence among businesses. While a meeting between Xi and Modi could help reduce some of the existing barriers, analysts say deeper trust will be necessary before commercial relations can fully recover.