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As India and Pakistan both have rich experience in maintaining security and combating crime, their entry will enhance the development potential and expand the room for cooperation between SCO members in terms of security, Liao said.

Xi's visit will be preceded by a flurry of high-level meetings this year, including meetings between the foreign, defence and home ministers and the national security advisers.

It is for the first time that an Indian Prime Minister is attending the summit after India along with Pakistan became a full-fledged member of the group jointly dominated by China and Russian Federation, which has been increasingly seen as a counter to North Atlantic Treaty Organisation.

President Mamnoon congratulated President Xi Jinping on his re-election as President of People's Republic of China and General Secretary of Communist Party of China (CPC). "We reviewed the full range of the India-Uzbekistan friendship, especially ways to boost economic and cultural cooperation", he said.

Indian Prime Minister Narendra Modi and Chinese President Xi Jinping signed the agreement as they began the two-day Shanghai Cooperation Organisation (SCO) summit.

"Met this year's Shanghai Cooperation Organisation host, President Xi Jinping this evening", Modi tweeted.

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The foreign secretary said one of the important outcomes of Saturday's meeting was that the Chinese side accepted prime minister's invitation to President Xi to come to India for an informal summit next year, similar to the one held by the two leaders in Wuhan on 27-28 April.

The SCO now comprises eight member states - India, Kazakhstan, China, Kyrgyzstan, Pakistan, Russia, Tajikistan, Uzbekistan.

Regional security issues will also feature, because terrorism is the most severe security challenge facing the SCO, according to Liao Jinrong, head of the Chinese ministry of public security's global cooperation department. "Their first meeting will be held this year", Gokhale said.

The two leaders also spoke about ensuring greater people-to-people contact, with Xi talking about the popularity of Indian films like Dangal, Bahubaali and Hindi Medium in China.

The two leaders also agreed on increasing bilateral trade to $100 billion by 2020, and Xi said China is ready to enhance agricultural imports from India. "And both leaders made very positive assessment of the Wuhan summit", he said, adding that both the leaders agreed to keep open the strategic communication. The two presidents also agreed to continue close coordination and cooperation on all issues of mutual interest.

On the trade front, New Delhi agreed to the Chinese President's request to allow opening of a Bank of China branch in Mumbai, while China said it will let Indian pharmaceutical companies register for high-quality pharma products in the Chinese market and to allow India to export non-Basmati rice to China.