Analysts said Modi's ties with China and his focus on restoring the fortunes of the world's second-most populous nation would temper his hardline nationalist approach.
During his election campaign, he made some hardline remarks on the India-China border issue and on neighboring Pakistan.
Hu said manufacturing and infrastructure were the priorities for Sino-Indian cooperation, as they could help the new administration to increase employment and improve living standards. "When you focus your mind on boosting the economy, you won't allow the border issue to hinder it," Hu said.
Modi has softened his stance somewhat since his stunning victory and surprised many by inviting Pakistan's Prime Minister Nawaz Sharif to his inauguration.
It was the first time since the two countries won independence in 1947 that a prime minister from one nation had attended such a ceremony in the other.
Saibal Dasgupta, veteran correspondent for The Times of India in Beijing, said India wanted a good relationship with China.
On Monday, Premier Li Keqiang sent congratulations to Modi and expressed willingness to improve ties with India.
Foreign Ministry spokesman Qin Gang said at a daily news conference that China was looking forward to working with the Modi administration to boost cooperation and regional peace and stability.
Describing Modi as "pragmatic", Sun, of the Chinese Academy of Social Sciences, said the new Indian leader was seeking a friendly international environment, which included better ties with the US and Japan.
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