Prime Minister Narendra Modi on Tuesday hinted the immense possibilities that could open a free trade agreement between India and China, and the creation of a market. 

"India and China are today almost 35 percent of the world population. From a purely arithmetical terms, improving 35 percent of the world's population and large doors decide to work together for progress and will open the development in the world, "he told Chinese journalists Modi here before President Xi Jinping's visit to India. 

"The transformation of the lives of 2.5 million people is a phenomenon of great importance to the region and the world," he added. 

Modi went on to list some of the areas of cooperation that benefit the Asian neighbors. 

"India can benefit from Chinaâ is strength in hardware, such as the creation of infrastructure and development of our manufacturing sector. 

"On the other hand, Indiaa, strength in the software can help Chinese companies become more efficient and competitive. Offers opportunity for Indian companies to export services to China," Modi said. 

The two countries have recently signed a memorandum of understanding for Chinese companies to set up industrial parks in India. 

"If we go back 300 years in history, the largest contribution to GDP in the world used to come from India and China, which together accounted for more than half of the worldâ, is the GDP," Modi told reporters 

Xi is arriving Wednesday afternoon in Ahmedabad, the commercial capital of the state of Gujarat, at the head of a delegation of high power. 

Initially, Modi receive Chinese President in Ahmedabad after the two sides are to ink some related regional agreements.