India-China Relations: Panchsheel to Galwan, the Boundary Dispute and LAC, Border Agreements, Trade Deficit, Water, Tibet and the 2024 Thaw (UPSC Notes + PYQs)

From friendship to war

India was among the first non-communist countries to recognise the People’s Republic. In 1954 the two signed an agreement on trade with Tibet whose preamble set out Panchsheel, the five principles of peaceful coexistence: mutual respect for territorial integrity and sovereignty, non-aggression, non-interference, equality and mutual benefit, and peaceful coexistence. The slogan “Hindi-Chini bhai bhai” did not survive the Tibet question and the border. After the Dalai Lama fled to India in 1959, tensions rose, and in October-November 1962 China attacked in Ladakh and the North-East Frontier Agency, then declared a ceasefire and pulled back in the east. Ambassadors were exchanged again only in 1976, and Rajiv Gandhi’s visit in 1988 reopened high-level dialogue.

The boundary dispute

There is no agreed boundary, only a Line of Actual Control (LAC) whose position each side sees differently. These “differing perceptions” cause most face-offs, because patrols of both sides walk into land each thinks is its own.

Agreements to keep the peace

From 1993 the two sides built a framework to manage the border while the dispute remained open:

• 1993: Agreement on Maintenance of Peace and Tranquillity along the LAC.
• 1996: Confidence-building measures in the military field, including no firing near the LAC.
• 2003: Special Representatives appointed to seek a political settlement.
• 2005: Political parameters and guiding principles for a settlement.
• 2013: Border Defence Cooperation Agreement.

For decades these held: no shot was fired in anger between 1975 and 2020.

Doklam, Galwan and the long stand-off

In 2017 Chinese road building on the Doklam plateau, claimed by Bhutan, led to a 73-day face-off with Indian troops. Informal summits at Wuhan (2018) and Mamallapuram (2019) followed. In April-May 2020 China massed troops at several points in eastern Ladakh. On 15 June 2020, in the Galwan valley, 20 Indian soldiers died in hand-to-hand fighting, the first deaths on the LAC in 45 years. Many rounds of corps commander talks brought disengagement at Galwan, Pangong Tso, Gogra and Hot Springs, with buffer zones. In October 2024 an agreement on patrolling at Depsang and Demchok was announced, and Prime Minister Modi and President Xi met at Kazan. In 2025, the 75th year of ties, the Kailash Mansarovar Yatra and direct flights resumed, and Modi went to Tianjin for the SCO summit. Troops, however, remain deployed in large numbers on both sides.

Trade and economic dependence

China is one of India’s two largest trading partners, but the trade is lopsided. In 2024-25 India imported over USD 110 billion of goods from China and exported about USD 14 billion, leaving a deficit near USD 100 billion. India depends on China for electronics parts, solar cells, active pharmaceutical ingredients, batteries and rare-earth magnets. After Galwan, India banned many Chinese apps, required Government approval for investment from bordering countries (Press Note 3, 2020), and launched PLI schemes to build its own supply chains. China’s curbs on rare-earth magnet exports in 2025 showed how this dependence can be used as pressure.

Water, Tibet and other irritants

• Brahmaputra: China is building a giant hydropower project on the Yarlung Tsangpo in Medog, near Arunachal, begun in 2025. India fears effects on flow and lacks a water treaty; only flood-season data-sharing memoranda exist.
• Tibet and the Dalai Lama: India hosts the Tibetan government-in-exile at Dharamshala; succession of the Dalai Lama is a coming flashpoint.
• Pakistan: China’s arms supplies, the China-Pakistan Economic Corridor through Pakistan-occupied Kashmir, and shielding of terrorists at the UN.
• Neighbourhood: Chinese ports and loans in Sri Lanka, the Maldives, Nepal and Bangladesh.
• Global forums: China blocks India’s entry to the Nuclear Suppliers Group and a permanent UNSC seat.
• Stapled visas for residents of Arunachal and renaming of places there.

India’s response

India has built roads, bridges, tunnels and airstrips along the LAC under the Vibrant Villages Programme and Border Roads Organisation, raised mountain strike capacity and bought surveillance drones. It works with the US, Japan and Australia in the Quad and with ASEAN on maritime security, while keeping talks open with Beijing. The principle India repeats is that peace on the border is the basis for normal ties elsewhere; China has preferred to separate the two.

Way forward

Manage competition without conflict: restore trust on the LAC through de-escalation and clear patrolling rules; reduce critical import dependence while welcoming Chinese investment that builds Indian manufacturing; seek a data-sharing and dialogue framework on the Brahmaputra; keep the Special Representatives process alive; and build deterrence with partners. Two large neighbours cannot wish each other away, but they can keep rivalry from turning into war.

PYQ trend

Mains GS-II and GS-III ask about the border, the BRI, supply chains and India’s place in the US-China contest. Prelims tests geography and the BRI.

India China Relations: UPSC angle

India China Relations UPSC PYQs (Prelims)

Questions UPSC has actually asked, from the official papers. Pick an option to check yourself.

Mains PYQs on this topic

Questions from the official UPSC Mains papers (2023-2026 in the Battle IAS Mains bank), newest first. Each links to a model answer.

1. UPSC Mains 2026 · GS Paper II · Q20 · 15 marks

   “China's Belt and Road Initiative (BRI) has transformed South Asia from a regional space into a theatre of great power competition.” Analyse the strategic implications of the BRI for India's security and regional influence in South Asia.

   Model answer and approach

2. UPSC Mains 2026 · GS Paper III · Q10 · 10 marks

   Ladakh is strategically located between China and Pakistan. As a measure to win hearts and minds of locals, discuss the Border Area Development Programmes (BADP) by the Central Government and civic actions by the Army. Also discuss demand of promulgation of provision of the Sixth Schedule of constitution for Ladakh.

   Model answer and approach

3. UPSC Mains 2024 · GS Paper II · Q9 · 10 marks

   ‘The West is fostering India as an alternative to reduce dependence on China’s supply chain and as a strategic ally to counter China’s political and economic dominance.’ Explain this statement with examples.

   Model answer and approach

4. UPSC Mains 2024 · GS Paper III · Q19 · 15 marks

   India has a long and troubled border with China and Pakistan fraught with contentious issues. Examine the conflicting issues and security challenges along the border. Also give out the development being undertaken in these areas under the Border Area Development Programme (BADP) and Border Infrastructure and Management (BIM) Scheme.

   Model answer and approach

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