The Simla Agreement was signed on July 2, 1972, between India and Pakistan to establish a framework for peaceful relations following the 1971 war. It emphasized the importance of bilateral dialogue and aimed to resolve disputes through peaceful means, reaffirming the Line of Control in Jammu and Kashmir. This agreement marked a significant step in reducing tensions between the two nations. It laid the groundwork for future negotiations and highlighted the commitment of both countries to respect each other's sovereignty and territorial integrity, fostering a more stable regional environment.