India-China direct flights resumption likely to boost trade, tourism and economic ties

India and China are set to resume direct passenger flights after a five-year hiatus, a move expected to boost trade, tourism, and economic engagement between the two nations.

Air travel between India and China was suspended during the COVID-19 pandemic and further affected by the 2020 Galwan Valley clash, cutting off one of Asia’s most important economic corridors.

Before the suspension, traffic between the two countries was substantial. In FY19, over 8.16 lakh passengers traveled between India and China, dipping slightly to 7.7 lakh in FY20 before pandemic restrictions halted flights. By comparison, India-US passenger traffic was around 11 lakh in FY20. Cargo movement was also significant, with 30,000 tonnes transported between India and China versus 17,700 tonnes with the US. Airlines including Air India and IndiGo operated 539 monthly direct flights, while Chinese carriers connected multiple cities. Since the suspension, travelers have had to take circuitous routes via Hong Kong, Thailand, and Singapore, adding time and cost to both travel and trade.

The resumption of flights comes amid other signs of rapprochement. India recently exported diesel to China for the first time in over four years, while China has approved urea exports to India. Both nations are also seeking to deepen engagement amid growing trade pressures from the US, which recently raised tariffs on several Indian products.

Diplomatic outreach is set to intensify with Prime Minister Narendra Modi scheduled to visit China later this month for the Shanghai Cooperation Organisation (SCO) Summit. Air India and IndiGo have been asked to prepare to restart services on short notice, with official announcements expected around the SCO Summit in late August.

The revival of direct routes is likely to reignite strong pre-pandemic demand, supporting business travel, tourism, and broader economic normalisation between the two regional powers.

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