Objective: To analyze whether the old agreement between India and China is sufficed to provide permanent solution to the sources of tension between the two nations or is there a need to find new Modus Vivendi.
Methodology/Statistical Analysis: The methodology used in this paper is purely a qualitative one. Secondary data has been collected from various official/Governmental sites and documents. The major idea behind this research is taken from the interview of India’s Former National Security Advisor, Shiv Shankar Menon.
Findings: These major research findings are as follows: various sources of conflicts between the two nations are taken and are critically examined from the point of view of both the nations. It proves that there are much more opportunities to gain than to lose for both the countries and therefore there is an urgent need to have a new Modus Vivendi. It examines that the old Panchsheel Agreement has served its best which it could in the last 30 years to maintain peace and tranquility between both the nations. But now it is under stress and this is the perfect time to frame a new Modus Vivendi with its new challenges and untapped opportunities. It also provides the key elements for the new Modus Vivendi which incorporates permanent solution to the various sources of conflicts between the two neighbors.
Application/Improvements: This work opens the gateway for further research in finding strong and constructive key elements for the new Modus Vivendi between the two nations. Researchers can explore the basis of agreements and clauses to be incorporated in new Modus Vivendi which can provide permanent solution to the major boundary issue and water diplomacy problem between the two neighbors.