India and China agreed on Tuesday to resume direct flights and step up trade and investment flows as the neighbours rebuild ties damaged by a 2020 border clash.

The latest statements came at the end of Foreign Minister Wang Yi's two-day visit to New Delhi for the 24th round of talks with Indian National Security (NSA) Advisor Ajit Doval to resolve their decades-old border dispute.

Xinhua News Agency quoted Wang as saying that bilateral relations between China and India have entered a steady development track since the beginning of the year, and the boundary situation has continued to stabilise and improve.

He said the two sides had reached a new consensus on conducting regular management and control to maintain peace in border areas.

A Foreign Ministry statement said both countries have agreed to set up a working group to consult and coordinate on border affairs to advance demarcation negotiations.

It said the mechanism will extend talks to cover the eastern and middle sections of the border. Meanwhile another round of talks on the western section will be held as soon as possible, the ministry said.

The Indian foreign ministry, meanwhile, said the border talks covered issues related to pulling back troops both countries have amassed on their Himalayan border, delimitation of borders and boundary affairs.

It also said the two countries would resume direct flights and boost trade and investment, including reopening border trade at three designated points, and facilitate in visas.

Wang also held a meeting with Indian Prime Minister Narendra Modi, who stressed that India and China are partners, not rivals, and should increase exchanges, promote mutual understanding and expand cooperation, Xinhua said.

He added that the two sides should properly manage and settle boundary issues, so that differences will not evolve into conflict.

"Stable, predictable, constructive ties between India and China will contribute significantly to regional as well as global peace and prosperity," Modi posted on X after the meeting.

Modi is scheduled to travel to China at the end of this month to take part in the summit of the Shanghai Cooperation Organisation -- his first visit to the country in more than seven years.

Wang welcomed Modi's attendance at the upcoming summit, saying his India visit had paved the way for high-level exchanges between the two countries.

The Foreign Minister said during his New Delhi trip, the two sides had reached consensus on restarting dialogue mechanisms in various fields, deepening mutually beneficial cooperation, upholding multilateralism, jointly addressing global challenges, and opposing unilateral bullying. (Xinhua/Reuters)