Indian Prime Minister Narendra Modi has met China's top diplomat and hailed the “steady progress” made in improving the countries' relationship after a yearslong standoff between the nuclear-armed powers.

His remarks came as Delhi and Beijing agreed on resumption of direct flights, border trade, facilitating trade and investments, and at least three border-related new mechanisms, signalling headway made in rebuilding ties after five years of a tense border standoff.

Indian Prime Minister Narendra Modi said on Tuesday that India-China relations had made steady progress since his meeting with Chinese President Xi Jinping in October, guided by respect for each other's interests and sensitivities.