After Modi

Chinese President Xi Jinping started the New Delhi leg of his visit on Thursday with a call to both countries to pursue developmental goals together.

'For both our countries development is top priority. We share the same developmental goals, same developmental philosphies,' President Xi told reporters at the Rashtrapati Bhawan.

'We are the two largest developing economies, and two biggest markets. In an increasingly multipolar world our strategic and economic ties are important. Together we can bring prosperity to 2.5 billion people of Asia and opportunities to rest of the world,' he added.

President Xi , speaking after being given a ceremonial reception at the Rashtrapati Bhawan, urged both countries to deepen economic and tactical cooperation.

On the day two of his visit, Xi, along with his wife Peng Liyuan, paid tributes at the samadhi of Mahatma Gandhi at Rajghat. He will also call on external affairs minister Sushma Swaraj.

Prime Minister Modi and Xi will then hold bi-lateral discussions following which both the leaders will make a media statement at Hyderabad House.

Meanwhile, even as the Chinese president is visiting New Delhi, the Chinese army reportedly made a fresh incursion in Chumar area and refused to return.

Read: Grand welcome for Chinese president Xi in Modi's Ahmedabad

MEA spokesperson Syed Akbaruddin told reporters that the Indian side will raise this issue, and 'all other issues of concern' during their talks with the Chinese president.

On Wednesday, Xi had arrived to a lavish welcome in Ahmedabad, kicking off a three-day visit aimed at rebooting ties with massive Chinese investments in India, especially in infrastructure.

The two leaders then had a brief meeting followed by the signing of three MoUs.

The MoUs included one on setting up of an industrial park in Gujarat and another to make Guangzhou and Ahmedabad sister cities. By the end of Xi's trip, Chinese investments totalling some $100 billion, particularly in modernising Indian railways, are expected to be announced.

Besides investments, India is banking on China's track record at building highways, railways, and industrial zones to upgrade its creaky infrastructure. India is also eager to address the imbalance in their annual trade, which now totals around $65 billion but is skewed toward imports of Chinese electrical equipment and parts.But their ties are tested by a decades-old border dispute and fears of China's growing military and economic might.

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Read: China to set up industrial parks in Maharashtra and Gujarat