Read more in Daily Special: Chinese Premier Li Keqiang starts first foreign visit

Chinese Premier Li Keqiang's visit comes just weeks after a tense border standoff.

Both China and India have recognized that border disputes cannot play a decisive role in defining the bilateral relations. Border issues are included in Li's agenda, although concerns and skepticism are not expected to be turned around in one visit.

Financial cooperation also tops the agenda for Li's visit, as revealed by the composition of the business delegation accompanying him, which includes the executives of banks and other industries.

China and India have set an ambitious bilateral trade target of $100 billion by 2015. However, the trade volume between the two fell by 12 percent to $66 billion last year, driven by a record slump in exports.

India strongly seeks an anti-dumping duty on imports from China. But meanwhile, it needs China's equipment for the country's electricity sector and China's technology for their infrastructure construction. The Chinese premier is seeking cooperation opportunities that will benefit both.

Regardless of the abovementioned thorny issues between China and India, there are still positive signs.

The two governments seem to have got past the recent border dispute and continued to communicate throughout the crisis.

Pre-scheduled talks on Afghanistan were held on time. It is expected that China and Indian will find ways to cooperate over this issue despite their discrepancies on Pakistan, China's long-time partner but India's bitter rival.

India can also serve as a balance of the US' "pivot to Asia" strategy.

Last month, India suddenly withdrew from the planning of a joint naval exercise with the US and Japan off the US-administered Pacific island of Guam. These prove that both China and India are eying long-term development and showing restraint over potential mistrust.

In 2011, when former US secretary of state Hillary Clinton urged New Delhi to go beyond its "Look East" policy and play "a more assertive" role in the Asia-Pacific region, her remarks were interpreted as wooing India to contain China.

But Indian diplomats have been keeping a cool head toward China. They hope to cooperate with China through the framework of regional institutions such as BRICS, the Shanghai Cooperation Organization and the South Asian Association for Regional Cooperation. Li's visit will help boost the strategic partnership between the two.

The article was compiled by Global Times reporter Wang Wenwen based on an interview with Wang Dehua, director of the Institute of South Asia and Central Asia Studies at the Shanghai Municipal Center for International Studies. wangwenwen@globaltimes.com.cn