"This is an issue, on which he (Xi) said there must be increased coordination and cooperation with India".
Meeting Modi in the western Indian state of Goa on the sidelines of the eighth summit of the emerging-market bloc of BRICS, which groups Brazil, Russia, India, China and South Africa, Xi said the Chinese side is willing to work with India to carry on the positive momentum of last month's Group of 20 summit in the Chinese city of Hangzhou and push for positive results of the BRICS summit in Goa, so as to send out a positive signal of confidence, solidarity and cooperation.
PM Modi said that no country is immune from terrorism and on this issue, "we can not afford to have any differences".
Earlier, India had criticised the use of hidden veto by China to block its bid at the U.N.to ban Masood Azhar. And this is why China has put on hold banning Azhar, China's foreign ministry spokesperson Geng Shuang had said.
Swarup said both sides recognised that terrorism as a "key issue" with Xi asserting that the two sides should strengthen the security dialogue and partnership.
"On terrorism, both leaders felt that this was a scourge for the region", India's ambassador to China, Vijay Gokhale, who was also present at the meeting between the two leaders.
The Prime Minister said India and China must increase cooperation in the fight against terrorism and look for a common ground and a long-term road to tackle the menace.
Reading out a statement to the media in the presence of Putin, the prime minister appreciated Russia's understanding and support of India's actions to fight cross-border terrorism, an obliquely referring to India's surgical strike across the LoC targeting terror launch pads. "China clearly conveyed that their companies are ready to invest in India as they see India as an investment destination with immediate potential", he said.
To another question, he said China condemns all forms of terrorism and a counter-terrorism dialogue has taken place with it.
"We expect China will see logic in it", Swarup said. "Of course this will narrow differences".
Asked whether China has been provided with any evidence in the pursuit of obtaining China's support on the Azhar issue, Vikas replied no.
Talking about India's expanding presence in Russia's hydrocarbon sector, he said in last four months alone, Indian companies have invested close to United States dollars 5.5 billion in that country's Oil and Gas sector.
Moscow-based OAO Rosneft signed a preliminary agreement to ship by sea as much as 10 million tonnes of oil per year to India's Essar Group, Rosneft chairman Igor Ivanovich Sechin told reporters in New Delhi.
President Xi said India and China must step up counter-terrorism efforts and strengthen security dialogue and partnership.
Xi also said the two sides must maintain strategic dialogue on the counter-terrorism.
The reference to Azhar, the terror group leader based in Pakistan, by Mr. Modi is the most direct attempt by India to pin China to a commitment after it made a decision to extend a technical hold on Azhar's designation at the U.N. Earlier this week the Chinese Foreign Ministry said in a statement that there were "still different views on India's listing application" in the case.
India has raised with Russian Federation the issue of the latter's participation in a joint military exercise with Pakistan days after the Uri attack. This is an issue where there must be increased coordination and cooperation with India.