After four years of heightened tensions and disrupted economic ties, India and China have agreed on a return to 2020 border patrol arrangements along the Line of Actual Control (LAC) in the Himalayas, India’s Foreign Minister Subrahmanyam Jaishankar announced Monday.
The agreement marks a significant step toward resolving a simmering border conflict that in 2020 saw clashes between their militaries in the Galwan Valley kill at least four Chinese troops and 20 Indian ones.
"Hopefully, we will be able to come back to peace and tranquility,” Jaishankar told Indian news channel NDTV.
For many in the Indian business community, this agreement brings both relief and a fresh wave of optimism after trade ties plunged over the border tensions.
Nafisul Q Jilani, a Mandarin-speaking business owner whose exhibition company thrived on facilitating trade fairs for Chinese businesses in India, said the halt in diplomatic relations resulted in a cascade of economic disruptions, including visa restrictions and diplomatic standoffs that put his business on ice.
"Business is taking a huge hit on both sides,” he told VOA Mandarin. “Businessmen from both countries are desperately waiting for things to get better. But unfortunately, hope was diminishing day by day."
The standoffs affected entire industries.
“As of now, visas aren’t being issued, and as a result, the exhibition and travel-tourism industries are taking a huge toll,” Jilani said. “Hospitality, transportation, tourism —everything is affected, and unemployment in these sectors is growing,” he said.
But after today’s India-China agreement on patrolling the border, Jilani is hopeful again.
"This announcement brings a lot of joy,” he said. “I’m looking forward to getting back to brisk business and helping our Chinese partners reconnect with India. Our economies are growing fast, and it's crucial for us to explore opportunities on both sides."
Jitender Chandak, a tea exporter to China, has faced his own share of challenges during the diplomatic freeze. Like Jilani, Chandak’s business has been hit hard by visa and travel restrictions. He was unable to host his Chinese business partners in India, he told VOA Mandarin.
“I’ve been running huge losses because I couldn’t invite my customers from China,” he said.
Now, with better relations on the horizon from the border patrol announcement, Chandak’s optimism is palpable.
“Now that relations are set to normalize, I can finally invite my business partners and friends to India, and we can expand our business further,” he said.
His optimism reflects the broader sentiment of small business owners who have been eagerly awaiting an opportunity to reconnect with their Chinese counterparts.
Naresh Gupta, president of the Indo-China Chamber of Commerce, says the patrolling agreement is not only a solution to immediate tensions but also has the potential for deepening economic collaboration between the two Asian giants.
“The disengagement is a step in the right direction,” Gupta said. “I see this as an opportunity for Indian businesses to enhance their technology adoption, improve product quality, and strengthen branding through collaborations with Chinese companies.”
While the patrolling agreement is a major milestone, experts caution that rebuilding trust between India and China will take time.
The standoff over the past four years has seen both nations station tens of thousands of troops along the border.
Indian Foreign Secretary Vikram Misri, while outlining the details of the agreement, emphasized that both countries have agreed on the “sanctity of the LAC,” which lays the foundation for future peace and tranquility along the border.
Beijing has yet to officially comment on the agreement.
It was announced just a day before Russia hosts an annual summit of the BRICS group of emerging economies that Indian Prime Minister Narendra Modi and Chinese President Xi Jinping plan to attend.
BRICS is named after its founding members — Brazil, Russia, India, China and South Africa.
Indian media are speculating the deal could pave the way for direct discussions between Modi and Xi on the sidelines of the summit.
When asked at a regular Foreign Ministry briefing Monday if any meeting would take place at the Moscow-hosted BRICS summit between Xi and Modi, spokesman Lin Jian said, “We will keep you posted if anything comes up.”
