China and India have agreed to resume direct commercial flights, in the latest sign of an easing of tensions between the world’s two most populous countries.

The resumption of direct flights between India and China is good news for domestic airlines, who can reinstate and add flights and cash in on the huge cargo potential which exists between the two countries.

India and China have agreed to resume direct air services after nearly five years and work on resolving differences over trade and economic issues, New Delhi said, as relations continue to thaw after a deadly 2020 border clash.

Ties between China and India appear to be on the mend after both sides agreed in-principle to resume direct flights, which have been suspended for five-years due to the COVID-19 pandemic and a deadly border dispute in 2020.

It was the latest thaw in relations between the two countries, whose troops were involved in deadly skirmishes high in the Himalayas in 2020.

India and China have agreed to resume direct air services after nearly five years, India's foreign ministry said on Monday, signalling a thaw in relations between the neighbours after a deadly 2020 military clash on their disputed Himalayan border.