He announced that the leaders have agreed on a new High Level Economic and Trade mechanism, which will be chaired by Chinese Vice Premier Hu Chunhua and Union finance minister Nirmala Sitharaman. However, India's trade deficit is about $53.56 billion.
That meeting went beyond schedule, with the leaders talking for two and a half hours. "They are in the midst of an agreement, and we are awaiting the details".
In the Shore Temple on the coast of the Indian Ocean, Xi and Modi talked about the domestic development of China and India and exchanged experience in state governance.
"Xi recalled his successful meeting with Modi in Wuhan a year ago, which brought China-India relations into a new stage, and said that he is delighted to come to Tamil Nadu in southern India to further learn about the country", the statement said. The two leaders also agreed to explore of establishing manufacturing partnerships.
Beijing is insistent that New Delhi must now sign the mega free-trade pact Regional Comprehensive Economic Partnership or RCEP, the talks for which began in 2012.
India also is concerned about China's moves to build strategic and economic ties with its neighbors Sri Lanka, Nepal, Bangladesh and the Maldives.
Mr. Modi and Mr. Xi had also urged the special representatives of the two countries to "continue their efforts to arrive at a mutually-agreed framework for a fair, reasonable and mutually acceptable settlement [of outstanding issues including on the boundary question] based on Political Parameters and Guiding Principles that were agreed by the two sides in 2005", the MEA said in its release. The date will be decided through diplomatic channels, he said. In the summit, the two sides also deliberated on several regional and global issues and emphasised the importance of having independent and autonomous foreign policy.
Both the leaders also shared their respective approaches towards national development.
Narendra Modi has reiterated that differences should not escalate into disputes between India and China, adding that the two Asian giants have so far successfully implemented a vision adopted during the Wuhan Informal Summit.
The two leaders agreed that China and India should respect and learn from each other so as to jointly achieve common development and prosperity, as well as the great rejuvenation of the two civilizations.
They reaffirmed a pledge made at the last summit in Wuhan, China, that "both sides will prudently manage their differences and not allow differences on any issue to become disputes", said an Indian government statement.
They included topics on overarching, long-term and strategic issues of global and regional importance, that are necessary for a rule-based worldwide order.
Both agreed that it is important to support and strengthen the rules-based multilateral trading system at a time when globally agreed trade practices and norms are being selectively questioned. India and China will continue to work together for open and inclusive trade arrangements that will benefit all countries.