Border trade between India and China via the Lipulekh Pass in Uttarakhand’s Pithoragarh district is expected to restart in June this year, after remaining suspended since 2019 for six years due to the COVID-19 pandemic and border tensions with China, according to reports.
This development comes after the issuance of a No-Objection Certificate (NOC) by the Ministry of External Affairs (MEA) for trade through the Himalayan pass this year.
District Magistrate Ashish Bhatgai said that, following instructions from the Union government, preparations have begun for the trade season, which usually takes place from June to September, as per the reports.
It also said, Foreign Secretary Vikram Misri had written to Uttarakhand Chief Secretary Anand Bardhan, requesting the resumption of trade through the Himalayan pass. The letter also notes that the Ministry of Home Affairs and the Ministry of Commerce and Industry have granted their approvals.
On March 22, the Government of India approved the reopening of the Lipulekh Pass in Uttarakhand, signaling the resumption of India–China border trade after a six-year pause and a renewed easing of relations between New Delhi and Beijing.
The pass, which had been closed since the COVID-19 pandemic and the 2020 Galwan Valley clashes, is set to be operational during the June–September trading season this year.
India-China trade via the Lipulekh pass
Lipulekh Pass trade is a small-scale, seasonal border exchange focused on traditional Himalayan goods between Indian border communities and Tibetan traders. It has operated since 1954 (resumed 1992 after 1962 war suspension) but remains modest in volume (crores of rupees annually).
Prior to its closure in 2019, and based on figures from Indian government trade officials, the Lipulekh Pass in Uttarakhand supported approximately Rs 6.55 crore in cross-border trade during the 2018 season, the last full trading period before the pandemic.
Imports by Indian traders (from Tibet/China) stood at Rs 5.59 crore. Exports by Indian traders (to Tibet/China) remained at Rs 96.5 lakh (i.e., Rs 0.965 crore).
Strategic significance of Lipulekh Pass
Lipulekh Pass, located at the India–China–Nepal trijunction in the Himalayas, holds strategic importance for India. Its proximity to the Line of Actual Control enhances surveillance and military readiness against China, while improved road infrastructure allows troop and supply movement in this region. The pass also serves as a trade route, supporting diplomatic engagement between India and China, as in its 2026 reopening. The region is vital for water security, near the Kali River’s origin and regional stability concerns.
Situated at an altitude of 17,000 feet in the Chand Valley of Pithoragarh district, trade through the historic Lipulekh Pass was halted for decades following the 1962 India–China war before resuming in 1992. The pass, which connects India’s Uttarakhand state with China’s Tibet Autonomous Region, has long been the subject of a three-way territorial dispute. India maintains that trade through the pass has been ongoing since 1954, while Nepal asserts that the area, including Kalapani and Limpiyadhura, falls within its borders.
Nepal has repeatedly opposed India–China trade agreements involving the Lipulekh Pass, including lodging a diplomatic protest in 2015 when India and China agreed to expand trade through the route during Prime Minister Narendra Modi’s visit to Beijing. Tensions further escalated in 2020 after India inaugurated a new road to Kailash Mansarovar.
Meanwhile, China has generally aligned its position with India on the Lipulekh issue, particularly following the release of its 2023 official map, which places the disputed territory within Indian borders.
