New Delhi/Beijing: After a gap of six-year, India and China have resumed seasonal border trade through three historic Himalayan routes, which are Nathu La in Sikkim, Shipki La in Himachal Pradesh and Lipulekh Pass in Uttarakhand. This marks a significant diplomatic step to rewire the relations, post the Galwan clash of 2020, when bilateral ties had hit rock bottom.
Galwan clash of 2020 & freeze in Sino-India ties
The resumption of cross-border commerce comes after trade was suspended in 2020 amid the COVID-19 pandemic and a subsequent freeze in India-China relations. In 2020, the Chinese troops crossed the Line of Actual Control(LAC) & intruded into the Indian territory in the Galwan region(Eastern Ladakh) and attacked Indian security personnel. This led to a massive rupture in the bilateral relations, as India lost 20 soldiers. New Delhi also minimized diplomatic contacts, bilateral engagements, trade & travel relations until the resolve of border conflict.
This was followed by an intense phase of military stand-off and deployment of massive troops by India to consolidate national security. However, New Delhi and Beijing are on the path of resetting the diplomatic ties from the past couple of years. In this direction, Prime Minister Modi and Chinese President Xi Jinping met on the sidelines of BRICS Summit in Kazan, Russia in 2024 and agreed to restore bilateral relations.
This was followed by a series of diplomatic exchanges and talks at the corps commander/military level to secure border management. In October 2024, in a bilateral breakthrough, both sides agreed for de-escalation, disengagement and resumption of border patrolling across the friction points of Deepsang plains and Demchok in Eatsern Ladakh.
Previously, disengagement was initiated from Pangong Tso, Gogra and Hot Springs, post the intense face-off during the period following the Galwan clash. As a measure of restoring ties, New Delhi and Beijing also recently resumed direct flight connectivity and Kailash Manasarovar Yatra.
The latest act of reopening the ancient himalayan trading corridors is being seen as a another benchmark for bilateral engagement. It especially offers economic opportunities to the traders and communities living in some of India’s border regions.
Nathu La reopens with tighter security, 38 traders issued passes
In Sikkim, border trade through the historic Nathu La Pass in East Sikkim, located at an altitude of more than 14,000 feet, resumed with officials from India and China participating in a formal reopening ceremony at the border.
The route, which links Sikkim with Tibet, was first reopened for border trade in 2006 after remaining closed for decades following the 1962 India-China war. Trade continued until it was suspended during the Galwa clash of 2020.
Under the existing bilateral protocol, seasonal trade through Nathu La will continue from Monday to Thursday until November. The gate will open at 7:30 AM IST, with registered traders permitted to conduct business worth up to Rs 2 lakh per day.
Sikkim Commerce and Industries Department Secretary Karma D Youtso said that 38 registered traders have been issued trade passes this year. The existing list of around 36 approved commodities will be available for trade. These include handicrafts, handloom products, blankets, agricultural tools, processed food, spices, ready-made garments, utensils and traditional religious articles.
Meanwhile, imports from the Tibetan side include garments, shoes, yak products, butter, borax, quilts and other permitted goods. Security arrangements have also been strengthened. The Indo-Tibetan Border Police (ITBP) has deployed additional personnel at Nathu La, including an all-women platoon for the first time to assist with border trade operations.
After 6 years, border trade between India & China has resumed through the historic Nathula Pass in Sikkim!
Officials exchanged trade passes at the border gate today, reviving one of the oldest Silk Route corridors.
A welcome boost for local traders#NathulaPass #IndiaChinaTrade pic.twitter.com/xH3TMfSnKP— Northeast Vibe 🌿 (@northeast_vibe) August 3, 2026
Trade via Shipki La brings back himalayan barter trade
In Himachal Pradesh, the ancient Shipki La route in Kinnaur also witnessed the return of cross-border trade after a six-year gap. The route, traditionally used by communities on both sides of the Himalayas for generations, has long been an economic corridor. Traders from Indian villages indulge in traditional barter system, forming an important part of local livelihoods.
The first batch saw 16 traders from villages including Namgia, Chuppan, Nako and Chango embark on a 72-hour trading expedition. Their consignments were transported in pickup vehicles up to Shipki La and then carried on mules, reflecting the traditional mode of transportation in the high-altitude terrain.
Kinnaur Deputy Commissioner Amit Kumar Sharma said that the first expedition would provide valuable feedback on demand, quantities and preferred forms of trade, helping authorities strengthen cross-border commerce.
Indian traders are permitted to export 36 designated items, including spices, pulses, biscuits, refined oil, dry fruits, tea, sugar, walnuts and turmeric. Traders from Tibet can bring in approved products such as silk, leather footwear, asafoetida, thermos flasks and glassware.
A newly built trade mart at Shipki La will facilitate trader registration, customs clearance and import-export procedures. Himachal Pradesh Revenue and Tribal Development Minister Jagat Singh Negi also inaugurated the Rs 1.7-crore facility and flagged off the first group of traders.
Traders cross Lipulekh to assess business opportunities in Tibet
In Uttarakhand, 20 Indian traders accompanied by four helpers crossed into China’s Tibet Autonomous Region through the Lipulekh Pass.
The first group travelled without trade goods, instead visiting their warehouses at Pulan market in Taklakot, where unsold merchandise has remained stored since 2019. Chinese authorities have reportedly allowed entry to traders who had left goods behind before the trade route was shut.
Officials said that the initial visit is intended to assess facilities and explore business opportunities before the gradual restoration of commercial activity. The trade season is expected to continue until October, with a possible extension to November subject to mutual agreement.
The resupmtion of traditional Indo-China Himalayan trade routes thus act as an impetus to further restore bilateral and diplomatic ties between New Delhi and Beijing, coupled with significant caution and military measures maintained at the border areas to consolidate national security and territorial integrity.
