Corporal Wang Ya Long was handed over early Wednesday, the Chinese military said in a statement.
New Delhi on Monday said it had detained Wang after he crossed into Indian-controlled territory in the harsh mountainous area of Ladakh.
China said Wang had got "lost after being asked by herders to search for yaks".
The two countries have moved tens of thousands of troops and weapons into the high-altitude region after a violent clash in June left 20 Indian soldiers dead and an unknown number of Chinese casualties.
Several rounds of talks have failed to significantly ease tensions.
The neighbours are now digging in for a harsh winter at an altitude of 4,200 metres (14,000 feet), in a region where temperatures regularly fall below minus 30 degrees Celsius (minus 22 Fahrenheit).
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