India and China restart Nathula border trade after six years with 38 traders
Cross-border trade between India and China through the strategically significant Nathula Pass in Sikkim has officially resumed after remaining suspended for six years, reopening one
Cross-border trade between India and China through the strategically significant Nathula Pass in Sikkim has officially resumed after remaining suspended for six years, reopening one of the most prominent trading corridors of the historic Silk Road. Located at an altitude of 4,302 metres above sea level, Nathula has long served as a vital commercial and cultural link between India and Tibet. While the route was shut following the 1962 India-China war, it was reopened for border trade in 2006 under a bilateral agreement. Trade was suspended again in 2020 following the outbreak of the Covid-19 pandemic and the military standoff in the Galwan Valley. Read Full Story The reopening is expected to provide a major economic boost to nearly 600 registered Indian traders who depend on seasonal border commerce for their livelihoods. TRADE RESUMES WITH FIRST BATCH OF 38 MERCHANTS Officials issued trade passes to 38 Indian merchants on the opening day, formally restarting commercial activity through the high-altitude pass. An inaugural ceremony was held at Zero Point, where representatives of the Sikkim government and the Centre met officials from the Chinese side, including members of the People's Liberation Army (PLA), to mark the resumption of trade.
The reopening also restores one of the few formal trade channels operating across the India-China border and is being viewed as an important step in reviving economic engagement in the Himalayan region. SIKKIM GOVERNMENT WELCOMES MOVE Sikkim Commerce and Industry Minister TT Bhutia told India Today that the state government had consistently pursued the matter with the Centre to ensure the resumption of cross-border trade. Local traders also welcomed the decision after years of financial hardship caused by the prolonged suspension. Anil Kumar, a trader from the region, told India Today that the reopening would help revive businesses that had suffered significant losses over the past six years. "We had incurred huge losses over the last six years. A lot of payments to merchants are due on both sides. We are happy and hope that this old Silk Route trade continues," he said, while thanking the Government of India and Prime Minister Narendra Modi for facilitating the reopening. REOPENING FOLLOWS HIGH-LEVEL INDIA-CHINA TALKS The resumption of trade follows the 24th round of Special Representatives' talks between Security Adviser Ajit Doval and Chinese Foreign Minister Wang Yi in 2025.
During the talks, the two sides agreed to revive border trade through Nathula in Sikkim, Lipulekh Pass in Uttarakhand and Shipki La in Himachal Pradesh. The understanding was subsequently reaffirmed during discussions between External Affairs Minister S. Jaishankar and Wang Yi. The reopening also comes after the revival of the Kailash Mansarovar Yatra through Nathula and coincides with infrastructure upgrades in the region, including the construction of a new highway connecting Rongli and Menla to improve access to the border. CONFIDENCE-BUILDING STEP, BUT SECURITY REMAINS TIGHT Despite the resumption of trade, officials view the move as a calibrated confidence-building measure rather than a sign of full normalisation in India-China relations following the 2020 Galwan Valley clash. Security deployment and operational preparedness along the Line of Actual Control (LAC) continue to remain at a high level even as both countries cautiously expand limited economic engagement. The reopening also comes against the backdrop of challenges at other border trade points. Late last month, nearly three dozen Indian traders travelling towards the Lipulekh Pass were stopped at Gunji, leaving thousands of quintals of goods stranded and exposed to adverse weather conditions.
The BriefWire