India, China Sign Trade Deals During Xi's Visit

India and China have signed three trade deals aimed at increasing Chinese investment in India's western state of Gujarat.

Chinese President Xi Jinping and Indian Prime Minister Narendra Modi signed the deals Wednesday, shortly after Xi arrived in India on a three-day visit aimed at expanding trade relations between the two Asian powers.

The agreements call for setting up an industrial park in Gujarat state and creating a sister-city pact between Ahmedabad, the largest city in Gujarat, and Guangzhou, capital of China's Guangdong province.

Gujarat, home to a large portion of China's overall investment in India, is under development as the country's first so-called "smart city."

Indian officials have been hoping to attract more Chinese investment, to help balance out a trade deficit that is heavily skewed in China's favor

This is Xi's first state visit to India. The Chinese president has written in The Hindu newspaper that the ties between Beijing and New Delhi are "one of the most dynamic and promising" relationships of the 21st century.

However, Chinese-Indian relations have been strained by a long-running dispute involving their Himalayan border and mutual distrust about each other's rising strength.

Xi will meet with officials in New Delhi on Thursday.

Earlier this week, he visited Sri Lanka and the Maldives, both traditional allies of India.