NEW DELHI—Chinese Premier Li Keqiang arrived in India on Sunday following a border dispute that is likely to overshadow the visit.

Tensions on the nations' boundary in the Ladakh area in the western Himalayas flared in mid-April, when India said China had pitched tents 12 miles within its territory and responded by moving more troops into the area. China, which won a 1962 war against India over the still-contested border, denied any incursion.

Mr. Li's visit, his first overseas since becoming prime minister in March, comes after troops from both sides withdrew on May 5 to positions held before mid-April, ending the standoff.

India and China for decades have been rival regional powers. In recent years, as trade between the countries has boomed, they have attempted to smooth over regular border disputes.

Bilateral trade rose by about a third to nearly $76 billion in the year ended March 31, 2012, and the countries hope to boost it to $100 billion by 2015.