Modi and Xi held talks in restricted format and then in delegation level during which the two leaders also focused on cooperation in key areas of trade and investment.
Modi, who hosted a private dinner for Xi in Ahmedabad after his arrival there yesterday, raised the issue of Chinese incursions last night as well as today, official sources said.
The issue assumes significance in the backdrop of incursions by the Chinese side in Chumar area of Jammu and Kashmir.
The Chinese side had pushed in more troops yesterday morning as well, the sources said, adding the number of People's Liberation Army personnel stood at nearly 500 with an equal matcher from the Indian side as well.
Chumar, located more than 300 kms Northeast of Leh and bordering Himachal Pradesh, has been a flash point between the two sides with the Chinese side making several attempts to end India's dominance in the area.
The stand-off in Demchok where Chinese nomads -- Rebos -- had pitched their tents is continuing. The incursion in this area is nearly 500 metres deep into Indian territory.