Indian Foreign Minister
A key feature of the agreement is the creation of a regular monitoring system to ensure compliance. Monthly review meetings will be held to track progress, signalling a long-term commitment to peace. This structured approach, involving both military and diplomatic channels, could lay the foundation for more robust confidence-building measures.
The pact also carries significant economic implications. While India had increased scrutiny of Chinese investments post-2020, bilateral trade has continued to rise, with Indian imports from China surging 56% in recent years. Experts see this agreement as a crucial step toward normalising broader diplomatic and economic ties, potentially allowing stalled business projects to resume.
Despite the optimism, challenges remain. Experts caution that this is just the first step in what will be a long road to lasting peace. As former Indian military commander Deependra Singh Hooda noted, “At least the impasse has been broken,” but further confidence-building measures will be critical.
The resolution of this border dispute could pave the way for deeper cooperation between the two nations, especially in a global context where both India and China are key players in shaping regional stability. For now, the world watches to see how this agreement will unfold in the months to come.