Indian Prime Minister Nerendra Modi says two days of talks with top Chinese leaders have yielded progress on thorny issues ranging from a yawning trade imbalance to their ongoing border dispute.

Modi said in prepared remarks distributed by his office that Chinese had been sensitive to India's concerns about its growing trade deficit with China, which reached $48 billion last year. Modi also held lengthy talks with President Xi Jinping on Thursday.

He said the sides agreed to create a high-level body dedicated to expanding economic relations in areas including infrastructure, information technology, pharmaceuticals, agriculture and manufacturing.

Modi said they also agreed to intensify confidence-building measures along the disputed Himalayan border over which the countries fought a bloody monthlong conflict in 1962.