This accord comes four years after a severe clash in the western Himalayas strained relations between the two Asian giants to their lowest point in decades.

Indian External Affairs Minister S. Jaishankar announced on Monday that the disengagement process with China has now been completed, signaling a step toward normalcy. However, the broader border dispute remains unresolved. The new deal allows for patrols to resume in the Ladakh region, enabling both nations’ soldiers to assert their territorial claims while ensuring compliance with the recent agreement.

This announcement has come just before Indian Prime Minister Narendra Modi's trip to Kazan for the BRICS summit, in which China is also participating. Analysts believe this agreement could pave the way for improved political and business ties between the two countries and potentially facilitate a meeting between Modi and Chinese President Xi Jinping, the first since their last encounter in 2020.

While few details of the pact have been disclosed, Indian Foreign Secretary Vikram Misri specified that it focuses on the "disengagement" of troops at the Line of Actual Control (LAC). The LAC spans 3,488 kilometers (2,167 miles) and serves as the de facto border between Chinese and Indian-held territories. Misri did not clarify whether this agreement would lead to the withdrawal of tens of thousands of additional soldiers stationed by both nations in the Ladakh area.

China has acknowledged the deal regarding the military patrols along the frontier but did not elaborate on whether it applies to the entire length of the border or just the hotspots of recent clashes. A senior military officer informed Reuters that both sides would reduce their troops slightly from current positions to avoid confrontations, with a schedule for patrols being formulated. Regular monthly review meetings and monitoring of contested areas by both countries are expected to ensure the agreement is honored.

Manoj Joshi, of the Observer Research Foundation, commented that the lack of detailed information suggests that negotiations may still be ongoing. Lingering questions about the status of "buffer" zones along the LAC remain unanswered.

The border between India and China has been a contentious issue for seven decades, marked by a brief and bloody war in 1962 where India suffered territorial losses. Diplomatic relations saw recovery through various agreements in the 1990s, but incidents of conflict re-emerged in recent years, notably with deadly clashes in the Galwan Valley in 2020 that resulted in casualties on both sides.

This week's agreement is notable but should be viewed with caution, said Michael Kugelman of the Wilson Center's South Asia Institute. It does not resolve the broader border dispute but aims to revert conditions to what they were before the 2020 crisis. Furthermore, the geopolitical competition and different friction points, such as China's naval presence in the Indian Ocean and its close relationship with Pakistan, continue to present challenges.

The timing of the announcement, ahead of the BRICS summit, may provide the diplomatic grounds necessary for a face-to-face encounter between Modi and Xi, potentially easing business relations. India’s business community, which has been affected by the restrictions placed on Chinese investments and visas post-2020, is likely to welcome this development.

While this deal marks a new beginning, experts like Joshi and Kugelman urge cautious optimism. The path to a stable and normalized relationship will likely require significant effort and trust-building measures going forward.