India had been preparing for the talks on Friday and Saturday but there had been speculation that they might be postponed because of differences over several issues.
These include Chinese unease over India's move in August to split the state of Jammu and Kashmir -- partially claimed by China -- into two and Indian military exercises in Arunachal Pradesh state, part of which is also claimed by Beijing.
India has also objected to Beijing's Belt and Road initiative, a global infrastructure programme that includes a major project through Pakistan-administered Kashmir, a territory claimed by New Delhi.
The Indian foreign ministry said that the talks in Chennai in southern India would "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".
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