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, 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.

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.