Mending Ties? A Timeline Of India-China Relations Over The Last Year

India and China's relationship has been improving, but its been going on for more than a year and is part of a longer process. This shift has come in the form of diplomatic and economic changes, as outlined by Jefferies.

"There is a desire to return to Chinese relationship normalcy of the pre-Covid levels with, for example, direct flights between India and China set to resume in coming weeks, after a five-year gap," the brokerage said in a note.

This improving relationship helps India in ramping up electronics production, and improve fertilisers and rare earth supply, according to the analysts.

Here's a quick look at all the key moments that impacted India-China ties over the last year:

In June 2024, India relaxed its visa rules for Chinese technicians working on Production-Linked Incentive schemes, followed by a pre-budget economic survey in July that advocated for improved business ties and supply-chain integration.

This was before the diplomatic breakthrough in October. Prime Minister Modi and President Xi held bilateral talks for the first time in five years on the sidelines of the BRICS Summit.

The momentum continued into 2025, with an initial agreement in January to resume direct air services, a step toward normalizing travel and economic exchange.

In April 2025, the religious Kailash Sarovar Manas Yatra was resumed, signaling an easing of border-area restrictions. China’s statement during the same month said that it had issued 85,000 visas to Indians in a few months. This ride to better ties hit a rough patch in May, when China reportedly provided radar and satellite aid to Pakistan during a border standoff with India.

Despite this, high-level dialogue continues between the nations, with India’s Defence Minister and National Security Advisor visiting China in June He had travelled to attend a Shanghai Cooperation Organisation meeting.

In July, Foxconn recalled about 300 Chinese engineers from India on tech transfer concerns, which raised some cloud on the Sino-Indian business ties. However, in August, Chinese Foreign Minister Wang Yi's visit underscored the positive reset in ties. During Yi's visit, disputed border areas were discussed while China also lifted curbs on exports of rare earth magnets to India.

With the latest developments leaning toward the positive side, they could help India in matters such as ramping up electronics production, fertilisers and rare earth supply, according to Jefferies.