Cross-border trade between India and China at the Nathula Pass has officially recommenced, marking the end of a six-year suspension. This important passage, situated at an elevation of 4,302 metres, has historically been a significant commercial link between India and Tibet. Although the route was closed following the 1962 India-China conflict, it was reopened for trade in 2006 under a bilateral agreement.

The suspension of trade occurred again in 2020, attributed to the outbreak of the Covid-19 pandemic and the ensuing military tensions in the Galwan Valley. The resumption of trade is anticipated to greatly benefit nearly 600 registered Indian traders who rely on seasonal border commerce for their income.

First Batch of Merchants Initiates Trade

On the initial day of reopening, officials issued trade permits to 38 Indian merchants, thereby reinstituting commercial activities through the high-altitude pass. An inaugural ceremony took place at Zero Point, where representatives of the Sikkim government met with officials from the Chinese side, including members of the People’s Liberation Army (PLA), to commemorate this significant event.

The resumption of this trade route is viewed as a notable step towards revitalising economic relations in the Himalayan region. It reinstates one of the few formal trade avenues available across the India-China border, underscoring the importance of economic engagement between the two nations.

Local traders have expressed their support for the decision, which comes after enduring financial difficulties due to the prolonged trade suspension. Anil Kumar, a regional trader, remarked that the reopening would assist in reviving businesses that had incurred substantial losses over the past six years.

Significant Diplomatic Developments Facilitate Reopening

The revival of trade through Nathula follows the 24th round of Special Representatives’ discussions between National Security Adviser Ajit Doval and Chinese Foreign Minister Wang Yi held in 2025. During these talks, both parties agreed to restore border trade at Nathula, Lipulekh Pass in Uttarakhand, and Shipki La in Himachal Pradesh.

This commitment was reaffirmed in subsequent discussions involving External Affairs Minister S. Jaishankar. Additionally, the reopening aligns with the renewed Kailash Mansarovar Yatra through Nathula and is complemented by infrastructure enhancements in the area, such as a new highway to improve access to the border.

Despite the positive developments surrounding the reopening, officials regard this as a cautious confidence-building measure rather than a sign of complete normalisation in India-China relations after the 2020 clashes in Galwan Valley. Security measures and operational readiness along the Line of Actual Control (LAC) remain elevated, reflecting the need for continued vigilance even as limited economic activities expand.

The reopening of Nathula is significant not only for its economic implications but also for the historical and cultural connections it enhances between the two nations. However, it takes place amid challenges in other border trade areas, as highlighted by recent incidents where Indian traders attempting to access Lipulekh Pass faced obstacles, leaving goods stranded.

Trade via Nathula is restricted to an approved list of 36 traditional items, such as wool, pashmina, yak tails, salt, herbal medicines, and handicrafts produced locally. This careful regulation reflects both countries’ efforts to manage trade while maintaining a level of security along their disputed border. As the longstanding trans-Himalayan trade route reopens, it illustrates a cautious approach by India and China aimed at rebuilding trust.

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