Capital announced return of border for Indian region (7)
I believe the answer is:
kashmir
'region' is the definition.
(Kashmir is an example)
I don't understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for kashmir that I've seen before include "Territory disputed between India and Pakistan since 1947" , "disputed area" , "Disputed region between Pakistan and India" , "State" , "Himalayan region" .)