🗞️ Why in News Border trade between India and China through the Lipulekh Pass in Uttarakhand’s Pithoragarh district is set to resume in 2026 after a six-year hiatus, following clearances from the Ministry of External Affairs (MEA), Ministry of Home Affairs (MHA), and Ministry of Commerce and Industry.
Historic Border Trade Route Reopens
The Lipulekh Pass
Lipulekh Pass is a Himalayan pass at an altitude of ~5,334 metres (17,500 feet) connecting Dharchula in Pithoragarh district, Uttarakhand, to Taklakot (Purang) in the Tibet Autonomous Region (TAR) of China. It is one of the three designated India-China border trading points.
| Border Trade Point | Location | Connects To |
|---|---|---|
| Lipulekh Pass | Uttarakhand | Taklakot/Purang, TAR |
| Shipki La | Himachal Pradesh | Namgya Khad, TAR |
| Nathu La | Sikkim | Chumbi Valley, TAR |
The pass also serves as a key route for Kailash Mansarovar Yatra pilgrims.
Why Was Trade Suspended?
Trade was suspended in 2020 due to:
- COVID-19 pandemic — border closures across all countries
- India-China border standoff in Ladakh (Galwan Valley clash, June 2020) — led to a freeze in bilateral engagement at multiple levels
Resumption Approvals
- Foreign Secretary Vikram Misri wrote to Uttarakhand Chief Secretary Anand Bardhan requesting restoration
- MEA issued a No Objection Certificate (NOC)
- MHA and Ministry of Commerce granted their approvals
- Trade passes will be issued for the June-September 2026 trading season
- In 2019 (last active year), around 265 traders were granted passes; higher numbers expected in 2026
Nature of Trade
The Lipulekh border trade is based on centuries-old traditional barter between communities on both sides:
| India Exports | China/Tibet Exports |
|---|---|
| Rice, flour, jaggery | Wool, pashmina |
| Sugar, cloth, utensils | Salt, borax |
| Spices, readymade garments | Silk, butter |
| Packaged food items | Yak hair, hides |
This trade is limited to locally produced and traditional goods — it is not a channel for bulk commercial trade.
Economic Impact on Border Areas
Officials emphasised that the resumption is not just about goods exchange but serves as a key driver of development in border areas:
- Employment for local youth in logistics, portering, and trade facilitation
- Tourism boost — the Lipulekh route passes through scenic regions attracting trekkers
- Strategic presence — active border trade maintains civilian presence and activity near the LAC
The Nepal Dimension
Nepal has expressed strong concerns over the Lipulekh trade resumption. The Kalapani-Lipulekh-Limpiyadhura trijunction area is claimed by Nepal as its sovereign territory.
Timeline of the dispute:
- 1816: Treaty of Sugauli between British India and Nepal — Kali River defined as boundary
- Dispute: India and Nepal disagree on the source/origin of the Kali River, leading to different territorial claims
- 2020: India inaugurated a road through Lipulekh Pass; Nepal published a new political map including Kalapani, Lipulekh, and Limpiyadhura as Nepali territory
- 2026: Nepal’s Foreign Ministry stated the resumption “reignites” its concerns; India maintains Lipulekh is part of Pithoragarh, Uttarakhand
Broader Context: India-China De-escalation
The Lipulekh trade resumption is part of a broader pattern of India-China normalisation following:
- Disengagement at multiple friction points in eastern Ladakh (2024-2025)
- Resumption of direct flights
- Restoration of diplomatic exchanges
- Border Personnel Meeting (BPM) mechanisms reactivated
UPSC Relevance
Prelims: Lipulekh Pass location, India-China border trade points, Treaty of Sugauli. Mains GS-2: India-China relations, India-Nepal boundary dispute, border management and trade diplomacy. Mains GS-3: Border area development, traditional trade practices.
📌 Facts Corner — Knowledgepedia
Lipulekh Pass:
- Location: Pithoragarh district, Uttarakhand
- Altitude: ~5,334 m (17,500 ft)
- Connects: Dharchula (India) to Taklakot/Purang (Tibet, China)
- Also used for: Kailash Mansarovar Yatra
- Trade protocol: June to September annually
India-China Border Trade Points:
- Lipulekh Pass (Uttarakhand) — trade suspended 2020, resuming 2026
- Shipki La (Himachal Pradesh) — also suspended, status under review
- Nathu La (Sikkim) — resumed 2023 after 3-year suspension
Kalapani-Lipulekh-Limpiyadhura Dispute:
- Parties: India and Nepal
- Core issue: Different interpretations of Kali River’s origin
- Treaty of Sugauli: 1816 (British India and Nepal)
- Nepal’s new map: Published June 2020, includes all 3 areas
- India’s position: Area is part of Pithoragarh, Uttarakhand
Other Relevant Facts:
- India-China LAC: ~3,488 km
- Galwan Valley clash: June 15, 2020 (20 Indian soldiers martyred)
- India-China bilateral trade: ~$118 billion (2024-25)
- Nathu La border trade: Reopened in 2006 after 44 years, suspended 2020, resumed 2023
- Border trade governed by: Protocol on Entry and Exit of Border Traders (2003)
Sources: The Tribune, ETV Bharat, Kathmandu Post, Millennium Post