Photographs Xinhua

China and India pledged closer cooperation on shared interests with leaders from both countries signing a five year economic and trade development plan on Thursday, reports NDTV.

Talks took place in New Delhi, during the second day of the President Xi Jinping's three day tour of India.

Xinping who is currently in Delhi for extensive talks with the Indian Prime Minister Narendra Modi, visited Modi's home state of Gujarat yesterday on arrival, where three pacts were signed, promoting twinning relationship between the Chinese province of Guangdong and Gujarat, as well as an MoU between China's Development Bank Corporation and Gujarat Industrial Development Corporation.

"My visit is a trip of friendship and cooperation. Thank you for specially coming here to accompany me in visiting your hometown," Jinping was quoted by China's state news agency Xinhua as saying to Modi.

In talks on Thursday in New Delhi, China and India signed

Speaking after talks in New Delhi, Modi said:

"I attach great importance to relations with China. Both are ancient civilizations and have equally historical ties."

"China is India's largest neighbour - we are the two most populous countries in the world."

"There should be peace in our relations and in the borders. If this happens we can realise true potential of our relations."

The talks took place whilst Chinese and Indian troops confronted each other across the border of Ladakh.