Nearly 1000 soldiers of the People's Liberation Army, who had made incursions into the Chumar region in Jammu and Kashmir, have reportedly pulled back from their positions even as India demanded a total withdrawal from its territories on Thursday.

Sources on Thursday said the PLA troops have pulled nearly 2 km back from their position. Meanwhile, the Indian Army has sent reinforcements to Chumar and is now awaiting China's response on a flag meeting it has called with the PLA.

The faceoff between the Indian and Chinese soldiers since Wednesday had dampened the bonhomie around Chinese President Xi Jingping's three-day visit to India, reminding the two countries of the problems underlying growing commercial ties.

Prime Minister Narendra Modi and Jinping held talks at New Delhi's Hyderabad House during which the Indian side conveyed its concerns over Chinese incursions as the two sides discussed all "substantive issues" having their bearing on the bilateral ties.

Modi and Xi first held talks in a restricted format, which was followed by a delegation level deliberation during which the two leaders also focused on cooperation in key areas of trade and investment.

"Let me assure you all these issues have been raised and issues of concern, including recent events, will continue to be discussed," Ministry of External Affairs spokesman Syed Akbaruddin said in response to a question about the Chumar standoff.

Modi, who hosted a private dinner for Xi in Ahmedabad, raised the issue of Chinese incursions on Wednesday night as well as Thursday morning, official sources said. The Chinese Army pushed in more troops into Chumar village along the Line of Actual Control in the wee hours on Thursday.

The Chinese side had pushed in more troops on Wednesday morning as well, the sources said, adding the number of People's Liberation Army personnel stood at nearly 1000.

Chumar, located more than 300 km northeast of Leh and bordering Himachal Pradesh, has been a flashpoint between the two sides with the Chinese Army 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.

Meanwhile, about 20 supporters of free Tibet, mainly women, protested within a few metres of Hyderabad House in New Delhi where Modi and Xi were holding talks, waving Tibetan flags and shouting "We want justice." Police detained them after a few minutes.

Several other small pro-Tibet protests broke out across the national capital.

Speaking in Mumbai, Tibetan spiritual leader the Dalai Lama said Xi should use his visit to learn from the Indian experience of democratic rule and learn democratic practices.

"I think the Chinese president should learn some of India's experience. Democratic rule, rule of law, and free media," he said.

In a sign that Modi wanted Xi's visit to be a success, the Centre had asked the Dalai Lama, whom Beijing labels a dangerous separatist seeking an independent Tibet, to reschedule an event in the national capital so that it would not clash with the Chinese president's trip.