Prime Minister Narendra Modi received the visiting Chinese President Xi Jinping and his wife at a hotel here on Wednesday.
Prime Minister Modi presented a bouquet of flowers to both the Chinese President and his wife Peng Liyuan.
The two leaders shook hands with each other and exchanged brief pleasantries.
Earlier on his arrival, the Chinese President was received by Gujarat Chief Minister Anandiben Patel and her Cabinet colleagues at the Sardar Vallabhbhai Patel International Airport here.
It is expected that both sides will sign three memoranda of understanding (MoUs). Of them, two are for relations between Guangdong and Gujarat and Guangzhou and the Ahmedabad Municipal Corporation. The third MoU is related to cooperation in the industrial sector.
The Chinese President's three-day visit is expected to focus largely on ramping up bilateral trade and investment, besides addressing the contentious border issue between the two Asian giants.
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India expects that the visit will address the 'interests and concerns' of both the countries and that 'all substantive' issues having bearing on the ties including the boundary dispute will be discussed.
Keen to boost its trade ties with India, the Chinese side has already indicated that it will pledge to invest billions of dollars in India's railway, manufacturing and infrastructure projects during the Chinese President's visit.
Prime Minister Narendra Modi has said India will seek greater engagement with China, but at the same time, will also look for progress on 'issues of concern' saying their resolution will transform the atmosphere in the relations.