India-China Border Trade Resumes at Shipki-La
By Business Desk
After a six-year hiatus, India and China have reopened border trade at Shipki-La Pass, Himachal Pradesh, revitalizing local economies and commerce for traders and businesses.
India and China have officially resumed border trade through the Shipki-La Pass in Himachal Pradesh’s Kinnaur district, ending a nearly six-year suspension that began with the COVID-19 pandemic. On Saturday, the first group of 16 local traders crossed into Tibet, initiating this year’s trading season.
Revitalizing Local Commerce
Himachal Pradesh Revenue and Horticulture Minister Jagat Singh Negi flagged off traders from the villages of Namgya, Dubling, and Leo. These traders transported approved products and underwent necessary security checks, with a requirement to return within 72 hours.
The resumption of trade is expected to significantly boost the local economy. It aims to create new opportunities for border village businesses, transport operators, and workers, thereby enhancing overall economic activity in the region.
Trade Infrastructure and Regulations
Minister Negi also inaugurated a new Trade Mart in Shipki village, constructed to streamline cross-border commerce. This facility provides a single designated location for Indian and Chinese traders to exchange goods efficiently.
According to guidelines from the Directorate General of Foreign Trade (DGFT), India is permitted to export 36 categories of goods to China and import 20 categories. Initial consignments included jaggery, rice, tea, sugar, carpets, biscuits, and local grains.
- Trade Mart Cost: Rs 1.70 crore
- Indian Export Categories: 36
- Indian Import Categories: 20
- Chinese Approved Traders (Initial): 20
Livestock such as horses, sheep, and goats will not be traded this season due to the absence of an animal quarantine facility in Kinnaur. The state government has, however, proposed the establishment of such a facility.
Initial Phase and Historical Context
The initial group of 20 Indian traders approved by Chinese authorities are traveling without fresh consignments. Their primary purpose is to inspect goods stored in warehouses at Taklakot before trade was suspended in 2019, a priority set by the India-China Border Trade Association.
Historically, trade through the Lipulekh Pass resumed in 1992 after the 1962 India-China war, supporting tribal traders from Uttarakhand. The recent suspension, which began in 2019 due to the pandemic, was initially slated for a restart on June 1, 2026.
However, the Tibetan administration requested additional time to enhance infrastructure, including accommodation and trading facilities at the Purang trading mart. With these arrangements now complete, border trade officially resumed on August 1, restoring a vital economic lifeline for communities along the India-China border.