Recently, India and China have decided to finally reach an agreement on disengagement at Pangong Lake, which has been at the heart of the recent LAC tensions. This decision was taken after Chinese troops entered into Indian territory. Many believed that these tensions would escalate into a larger-scale military conflict between both countries. This threat caused a rift between India and China in regards to the territorial dispute as well as the wider ramifications this dispute could have on other countries within the South Asian region. The recent agreement to move their platoons back is a sign of decreasing tensions and offers some hope of reducing military-to-military escalation in that area.
Partial Disengagement: India and China have mutually agreed to withdraw their troops from both sides, i.e., from the northern banks of Pangong lake as well as from the southern side in Kailash range close to Pangong lake.
Unresolved Issue of Depsang Plains: The Depsang plains due to their proximity to the Darbuk-Shyok-Daulat Beg Oldie road, the DBO airstrip, and the Karakoram Pass holds strategic importance for India when it comes to dealing with China.
Issue Regarding Creation of Buffer Zone: There are worries that the creation of proposed buffer zones would lie majorly on the Indian side of the LAC, thus converting a hitherto Indian-controlled territory into a neutral zone.
Distrust Between India & China: The events of last year have left enormous distrust, which remains a hurdle, and China’s actions on the ground have not always matched its commitments.
Clubbing Depsang Issue With Current Negotiations: If the Depsang problem precedes the current crisis on the LAC and thus must be treated separately, is not in India’s interest. Addressing it speedily will provide an incentive to greater cooperation in the future.
Extending Counteraction: Extending Counteraction hopes to lay the matrix for a stronger pushback against Chinese adventurism and growing assertiveness. The objective is to suggest an aggressive course of action that India must adapt to counter the Chinese outreach in our immediate neighborhood and beyond.
Playing Taiwan Card: The Indo-China conflict is still a storm in the teacup, but a closer look reveals that military factors are already at play. Let us have a close look at how India can exploit the vulnerabilities China has in Taiwan. Taiwan, of course, is only one of the levers in India's multi-lever (multi-vector) foreign policy, and it needs to be handled carefully lest there is blowback in the future from its present actions. But Taiwan is an interesting case study because it helps to highlight the issues involved in the other levers.
Defense Reforms: With India now facing a situation of stress on the undefined border with China, the need for carrying out long-pending defense reforms cannot be overstressed. The new Modi government should look at the recent Ladakh crisis as an opportunity to carry out these much-needed reforms.