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.

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.

India and China have agreed to resume direct flights after a five-year pause, marking a significant step in restoring ties between the two nations. This decision is expected to boost bilateral trade,

Indian officials have zeroed in on two of Trump’s top priorities — the economy and immigration — hoping to make small concessions that yield big dividends.

By Ira Dugal This was originally published in the India File newsletter, which is issued every Tuesday. Sign up here to get latest news from India and how it matters to the world. Investors in India are on edge ahead of the annual federal budget scheduled for release on Saturday.

Following a call between President Donald Trump and Indian Prime Minister Narendra Modi, India is seeking to boost bilateral ties and trade with U.S. amid an already friendly relationship between the two leaders.