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India–China trade via Lipulekh set to resume

Kathmandu, March 22: India is preparing to resume border trade with China through Nepal’s Lipulekh Pass from June this year.

The historic trade route, closed in 2020 due to the COVID-19 pandemic, is expected to reopen after six years, according to The Times of India. The trading season is likely to run from June to September, with a possible extension depending on weather conditions.

Officials expect higher participation from traders this year, citing improved road connectivity in the high Himalayan region. Lipulekh lies within Nepali territory and is included in Nepal’s official map. However, India and China have been using the route as a bilateral trade corridor.

Trade permits will be issued through established procedures, allowing traders and support staff enough time for registration, Indian media reported. Ashish Kumar, Chief District Officer of Pithoragarh, said coordination meetings with key departments have already been held to ensure readiness before the route reopens.

Following briefings from India’s Ministry of External Affairs, local authorities in Pithoragarh have begun preparations for the trading season.

Cross-border trade through Himalayan passes has a long and complex history. The Lipulekh route, shut after the 1962 India–China war, reopened in 1992 and remained operational until 2020.

After the resumption of the Kailash Mansarovar pilgrimage through this route last year, local traders had been pushing for trade to restart. Still, the move carries geopolitical sensitivity.

Nepal has a long-standing dispute with India over Lipulekh, Kalapani, and Limpiyadhura. Tensions escalated in 2020 after India inaugurated a road linking Dharchula to Lipulekh, prompting objections from Nepal. Soon after, Nepal published a revised political map reaffirming its claims.

Political changes following elections in Nepal earlier this month could influence how the issue evolves. Nepal, however, continues to object to trade conducted through this route.

Located at an altitude of around 17,500 feet, Lipulekh Pass connects India to Taklakot in Tibet and has served traders and pilgrims for centuries.

Improved infrastructure is expected to significantly benefit trade once it resumes. A motorable road completed in 2020 has replaced the earlier system of transporting goods by mules and sheep, reducing both travel time and transportation costs.

Authorities are working to ensure necessary facilities at the Gunji trade hub, including banking, customs, telecom services, and security coordination.

With better connectivity and upgraded access, Indian officials expect the reopening of the route to boost the local economy and revive key cross-border trade links in the region.

People’s News Monitoring Service

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