India's Prime Minister Narendra Modi will welcome Chinese President Xi Jinping at an informal summit this week, the Indian foreign ministry said on Wednesday, their talks coming at a time of strained ties over the disputed region of Kashmir.

The meeting in the southern Indian city of Chennai on Friday and Saturday is aimed at enhancing the rapport the leaders built when they met in the Chinese city of Wuhan last year to help stabilize ties after a standoff in another contested section of their long border, far removed from Kashmir.

The leaders of the two most populous countries in the world last met one-on-one at a resort in Wuhan, China, in April 2018.

But India's decision in August to withdraw special status for the part of Kashmir they administer drew sharp condemnation from Pakistan and its old ally, China, which took the matter to the UN Security Council.

India stripped Kashmir's semi-autonomous status in August, deploying thousands of troops and cutting off internet connectivity to prevent protests. Thousands of people, including mainstream political leaders and young people, have also been detained.

Indian Border Security Force soldiers patrol in Srinagar, in India-administered Kashmir on Oct. 6. It has been two months since India revoked the special status of Jammu and Kashmir. (Mukhtar Khan/The Associated Press)

During a meeting with Pakistan Prime Minister Imran Khan in Beijing on Wednesday, Xi said that he was watching the situation in Kashmir closely, the official Xinhua News Agency reported.

Xi said that the right and wrong of the situation was clear and India and Pakistan should resolve the dispute via peaceful dialog, according to Xinhua.

India says its revocation of the special status of Muslim-majority Kashmir, which was accompanied by a crackdown on dissent by the security forces, is an internal matter aimed at developing the Himalayan territory, which is also claimed by Pakistan, more quickly.

India will make clear that any change to its Jammu and Kashmir state is an internal affair if the Chinese side were to raise the matter in the forthcoming talks, a government source said.

he Himalayan region of Kashmir is divided between India, Pakistan and China. India rules the populous Kashmir Valley and the Hindu-dominated region around Jammu city, while Pakistan controls a wedge of territory in the west, and China holds a thinly populated high-altitude area in the north.

India drawing from U.S. support

China's close security ties with Pakistan have long been a matter of concern in New Delhi and in recent years India has drawn closer to the United States to help balance China's rising weight across the region.

"The forthcoming Chennai Informal Summit will provide an opportunity for the two leaders to continue their discussions on overarching issues of bilateral, regional and global importance and to exchange views on deepening India-China Closer Development Partnership," the Indian ministry said in a statement.

Imran Khan, left, is shown with Chinese Premier Li Keqiang at the Great Hall of the People in Beijing on Wednesday. The Pakistani prime minister later met with Xi Jinping for talks on his official visit. (Yukie Nishizawa/EPA-EFE)

China, which has been criticized by the United States for its treatment of members of Muslim ethnic minorities, said it believed India and Pakistan must refrain from taking unilateral action in Kashmir and has expressed concern over human rights violations there. India has dismissed those concerns.

Srikanth Kondapalli, professor of Chinese studies at New Delhi's Jawaharlal Nehru University, said it was important for the nuclear-armed neighbours to stabilize relations as both dealt with domestic and regional issues.

"The second informal meeting as such is significant given these ominous signals at bilateral, regional and global levels," he said.

During Xi's visit, Modi is expected to raise economic issues, including India's $53 billion trade deficit with China in 2018/19, and the smaller presence of Indian companies in China compared with that of other major economies.

Xi will also make a state visit to Nepal at the end of his India visit, the first by a Chinese president in 22 years, the Nepali foreign ministry said.

China has deepened ties with India's neighbours, building ports and power stations in an arc stretching from Bangladesh to Sri Lanka and Pakistan as part of its grand Belt and Road energy and infrastructure plan.