Indo-China trade via Nathu La to begin on August 1
What's the story
India and China have agreed to resume border trade through the historic Nathu La Pass in East Sikkim, starting August 1. The decision comes after a six-year hiatus due to the COVID-19 pandemic and increased tensions along the India-China border. All administrative and logistical arrangements for the reopening have been finalized.
History
Historic significance of Nathu La Pass
Nathu La, which sits at an altitude of over 14,000 feet, was once a part of the ancient Silk Route.
Border trade through this pass resumed in 2006 after decades of closure following the 1962 India-China war. However, it was suspended again in 2020 due to the pandemic and border tensions.
The reopening is likely to benefit nearly 600 registered traders in Sikkim who have been unable to conduct cross-border business since then.
Trade details
Trade through Nathu La Pass
The trade through Nathu La is restricted to approved items under a bilateral agreement.
India usually exports garments, blankets, tea, coffee, and handicrafts while imports from China's Tibet Autonomous Region include raw silk, wool, yak hair, and earthenware.
The decision to resume trade follows the 24th round of the India-China Special Representatives' dialogue co-chaired by National Security Advisor Ajit Doval and Chinese Foreign Minister Wang Yi.
Development projects
Infrastructure projects ahead of trade resumption
Ahead of the reopening, the government has expedited infrastructure projects in the region to improve connectivity and support trade.
A new highway connecting Rongli and Menla is being built as a safer alternative to older roads prone to landslides.
The upgraded infrastructure will improve goods movement, strengthen border logistics, and support tourism in East Sikkim.
The resumption of trade is likely to give economic boost to border communities while marking another step toward restoring bilateral exchanges between India and China.