Indian Prime Minister Narendra Modi has met China's top diplomat and hailed the “steady progress” made in improving the countries' relationship after a yearslong standoff between the nuclear-armed powers.

His remarks came as Delhi and Beijing agreed on resumption of direct flights, border trade, facilitating trade and investments, and at least three border-related new mechanisms, signalling headway made in rebuilding ties after five years of a tense border standoff.

India and China are aware of the “very high political, economic and military cost of frozen relations,” he says. “China felt it had pushed India too close to the U.S. while India realized that it was losing its vaunted strategic autonomy by getting too close to Washington and turning Beijing into an adversary.”