NEW DELHI — On Monday (Oct 21), India's Foreign Minister announced that India and China have reached an agreement regarding patrolling their disputed border, effectively resolving a four-year military standoff and paving the way for improved political and economic relations between the two nations.

This announcement comes just before Indian Prime Minister Narendra Modi's trip to Russia for the BRICS summit from October 22 to 24, where he may have discussions with Chinese President Xi Jinping, according to Indian officials.

Relations between the two most populous countries, both of which are nuclear powers, have been tense since deadly clashes on their largely undefined border in the western Himalayas resulted in 20 Indian and four Chinese soldiers' deaths in 2020.

Since then, both nations have halted patrols in several border areas in the Ladakh region to prevent further confrontations while deploying tens of thousands of troops and military equipment closer to the harsh highlands.

"We reached an agreement on patrolling, bringing us back to the situation as it was in 2020, and we can say the disengagement process with China has been completed," stated Indian Foreign Minister Subrahmanyam Jaishankar at a media event with NDTV. He added, "We have always maintained that if peace is disturbed, how can the rest of the relationship progress?"

To prevent conflicts, the two militaries will adhere to a predetermined schedule for patrolling disputed areas, according to a senior Indian military official who spoke to Reuters. Both sides will monitor the Ladakh region to ensure compliance with the agreement.

Beijing has not yet responded to India's statements.

Regular Review and Monitoring

New Delhi officials indicated that this agreement may facilitate a potential bilateral meeting between Modi and Xi at the BRICS summit, marking their first meeting since 2020.

The senior military officer mentioned that both sides would slightly withdraw their troops from their current positions to reduce the chances of face-offs, while still being allowed to patrol the areas according to an evolving schedule. Monthly review meetings and ongoing monitoring of the contested areas by both sides will help prevent violations.

Deependra Singh Hooda, a retired senior Indian army officer who previously commanded part of the China frontier, noted that while fresh confidence-building measures are needed, "at least the impasse has been broken."

Progress in talks over the past four years to resolve the standoff had adversely affected business relations between the two major economies, prompting New Delhi to increase scrutiny of Chinese investments and halt significant projects.

Following the clashes, India's stricter vetting of Chinese investments effectively deterred billions in investments from companies like BYD and Great Wall Motor and imposed additional regulations on Indian firms working with Chinese partners.

Despite this, Indian imports from China have surged by 56% since the 2020 border clash, nearly doubling New Delhi's trade deficit with Beijing to $85 billion (S$111.5 billion). China remains India's largest source of goods and was its top supplier of industrial products in 2023.

When asked about the impact of Monday's pact on trade and investment with China, Jaishankar replied, "It has just happened. There will be meetings to determine the next steps. I wouldn’t rush into conclusions."

Disclaimer: This image is taken from Reuters