Modi, Xi to discuss trade deficit, rare earth minerals in New Delhi

The high-level meeting between India's Prime Minister and China's President comes as both nations seek to address longstanding economic concerns and explore new avenues for cooperation. The dialogue is expected to focus on narrowing India's substantial trade deficit with China, a persistent challenge in bilateral economic relations.

Among the key agenda items is the issue of rare earth minerals, critical materials essential for electronics, renewable energy, and defense applications. With China currently dominating global rare earth production and processing, New Delhi has been exploring alternative sources and partnerships to reduce dependence on Chinese supplies.

Trade negotiations are also likely to feature prominently, as officials from both sides aim to identify opportunities for balanced commercial engagement. The meeting represents an effort to maintain diplomatic channels and address economic frictions while exploring mutually beneficial trade arrangements.

The encounter takes place amid broader regional dynamics, with both nations seeking to stabilize ties following previous border tensions and trade-related disputes. Officials on both sides have indicated their commitment to constructive dialogue on outstanding economic matters.