Chinese PM Wen Jiabao is due to begin a three-day official visit to India aimed at boosting trade ties between the two countries.
China is India’s largest trading partner – two-way trade volumes are set to hit $60bn (£38bn) this fiscal year.
The two nations fought a brief border war in 1962, but ties have improved.
Tensions remain, however, between the rising powers over their shared 3,500-km (2,170-mile) border, decades on from the conflict, which China won.
During his visit Mr Wen will hold talks with his Indian counterpart Manmohan Singh, External Affairs Minister SM Krishna and the ruling Congress party chief Sonia Gandhi.
In October he told Mr Singh on the sidelines of a regional meeting in Vietnam that there was “enough space” in the world for both countries to develop.
Mr Wen – the first Chinese premier to visit India in four years – is expected to be accompanied by 400 businessmen.
“Economic ties constitute literally the bedrock of our relations. Both sides are keen to further enhance mutually beneficial trade and are looking at new initiatives,” an Indian foreign ministry spokesman was quoted as saying by Reuters news agency.
Though bilateral trade is booming, analysts say the relationship is not flattering for India.
“India faces a ballooning trade deficit with China and the dumping of Chinese goods that is systematically killing local manufacturing. Mr Wen comes with a huge trade delegation to fortify this asymmetrical relationship,” said Indian strategic affairs analyst Brahma Chellany.
Ties between the two countries were strained in August when India cancelled defence exchanges after China refused a visa to a Kashmir-based general.
Last year, India protested against the Chinese practice of issuing visas to Kashmiris on separate pieces of paper, unlike the standard visas it offered to other Indians. China gave no explanation for the move.
China is also strongly critical of India for granting residence to the exiled Tibetan spiritual leader, the Dalai Lama.
It is also close to India’s traditional foe, Pakistan, with whom it is co-operating on military and missile development, cross-border infrastructure, and a deep-water port.
“Relations are very fragile, very easy to be damaged and very difficult to repair. Therefore they need special care in the information age.” China’s envoy to India, Zhang Yan, told reporters ahead of Mr Wen’s visit.
Mr Wen will travel to India’s nuclear-armed neighbour, Pakistan, for a two-day official visit after completing his India trip.
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.