Ahead of Chinese President Xi Jinping’s visit to New Delhi for the BRICS summit in mid-September 2026, India and China are actively exploring a structured framework to facilitate business-to-business engagement and streamline foreign capital inflows. Following preliminary diplomatic groundwork laid by NSA Ajit Doval in Beijing, discussions are focused on establishing a Chinese-backed export processing zone, securing predictable supplies of raw materials, and permitting Chinese electric vehicle manufacturers like BYD into non-strategic Indian sectors. While strict investment restrictions remain firmly in place along the Line of Actual Control and sensitive defense sectors, both nations are taking gradual steps to normalize commercial ties after a six-year freeze. Measures include resuming border trade through Nathu La Pass, restarting direct commercial flights, and issuing tourist visas. Although Indian merchandise exports to China rose 36% to $7.78 billion in the first four months of the fiscal year, New Delhi continues to push Beijing for enhanced market access and industrial purchasing commitments to bridge the massive bilateral trade deficit, which saw Chinese imports climb to $52.71 billion over the same period.