India's Prime Minister Narendra Modi and China's President Xi Jinping look on during their meeting in Mamallapuram on the outskirts of Chennai, India, October 12, 2019. India's Press Information Bureau/Handout via REUTERS

MAMALLAPURAM, India (Reuters) - India and China will set up a mechanism to tackle India’s galloping trade deficit with the world’s second-biggest economy, a top Indian diplomat said on Saturday, following summit talks between Prime Minister Narendra Modi and President Xi Jinping.

Xi, who is visiting India, and Modi held several hours of one-on-one talks in a southern seaside Indian town, during which they discussed a range of economic issues, including India’s $53 billion trade deficit with China in 2018/19, and ways to tackle it.

Indian Foreign Secretary Vijay Gokhale said at a press briefing that the deficit was a concern for India and the Chinese side was willing to address it. Xi welcomed Indian investment in pharmaceuticals and textiles, he added.