Improved relations between China and India are expected to spur deeper bilateral business engagement and support economic growth in both countries, analysts say.

Chinese Ambassador to India Xu Feihong said on Tuesday that bilateral trade reached a record high of $155.6 billion last year, marking a year-on-year increase of more than 12 percent.

Speaking at the Chinese New Year reception in New Delhi, Xu said Indian exports to China grew by 9.7 percent from a year earlier, highlighting the tremendous potential for Sino-Indian economic and trade cooperation.

The bilateral relationship has moved to a new level of improvement following a meeting between the two countries' leaders in Tianjin in August, he said.

China supports India's role as the BRICS rotating chair and is willing to enhance multilateral coordination with it, Xu said. Furthermore, China is committed to working with India to advance the broader development agenda of the Global South, he said.

"China stands ready to strengthen strategic alignment with India, deepen practical cooperation, enhance people-to-people exchanges, and strengthen multilateral coordination," he said.

Rajeev Singh, director-general of the Indian Chamber of Commerce, said China and India are natural partners, and together they can contribute 50 percent of the world's GDP growth.

"We are excited to see our trade reach a new high. It has the potential to scale new highs every year, but the engagement must broaden," he said.

"In the fast-changing geopolitical environment, it is important to take visible steps to build trust, avoid any conflicting signals to ensure stability and mutual respect."

Vijay K. Mishra, executive vice-chairman of India China Trade Centre, said Xu's articulation of China's economic resilience, commitment to high-quality growth, and support for an open, stable global trading system provides strong reassurance to businesses and investors alike in India.

The record trade figure and "the steady growth in India's exports to China clearly demonstrate the vast untapped potential for deeper economic engagement, industrial collaboration and value-chain integration between our two countries", he said.

Sudheendra Kulkarni, who served as an aide to former Indian prime minister Atal Bihari Vajpayee, expressed optimism about India-China ties, saying 2026 will be a year of positive steps forward.

Travel restrictions between the two countries have been eased, and it is all positive development and no going back now, he said.

Local media reported that Air India resumed the Shanghai-New Delhi direct flight on Sunday, following the commencement of daily nonstop flights between Kolkata and Guangzhou in October after a five-year hiatus.

Shranik Chopra, an Indian entrepreneur, said the "improvement in bilateral ties will help build greater confidence among the business communities on both sides and further strengthen economic cooperation".

Himadrish Suwan, chairman of the Confederation of Young Leaders of India, said Xu's speech underscored the immense potential of the bilateral partnership when guided by dialogue, mutual respect and shared interests.

Santosh Pai, a lawyer advising businesses operating between India and China and a scholar at the Institute of Chinese Studies in New Delhi, said Xu's emphasis on the growth in Indian exports to China might suggest more headroom for Indian exporters.

Aparajit Chakraborty is a freelance journalist for China Daily.

Contact the writers at vivienxu@chinadailyapac.com