Xi Jinping received a grand cultural welcome with traditional dance performances at the Chennai airport. He will proceed to Mallapuram, a coastal town 50 km away from here.
Trade issues, boundary disputes and multilateral cooperation are expected to majorly feature in the talks between the two leaders at the historic tourist town of Mamallapuram. The two leaders will yet again meet on Saturday to continue the discussions.
The Chinese President is due to leave for Nepal on Saturday afternoon.
State-run Xinhua news agency said the Modi-Xi meeting would focus more on how to move beyond the past and present differences to forge a cooperative partnership.
No agreements are expected to be signed during the summit.
It is not yet clear whether the two leaders would broach upon the issue of Kashmir during their informal talks.
Ahead of his visit to India, Chinese President Xi Jinping on Wednesday said he is watching the situation in Jammu and Kashmir and will support Pakistan in issues related to its core interests, the official Xinhua news agency reported.
According to the report, Xi told Pakistan Prime Minister Imran Khan during a meeting in Beijing that the right and wrong of the situation was clear, adding, “both parties should resolve the dispute via peaceful dialogue”.
The Chinese premier also reportedly assured Khan that the relation between China and its all-weather friend Pakistan is "unbreakable and rock-solid" despite changes in the international and regional situation.
Tensions between India and Pakistan have escalated since August when the Modi government scrapped the special status for Jammu and Kashmir under Article 370.