Gangtok: India and China on Saturday resumed border trade through the strategic Nathula Pass in Sikkim, reopening a historic trading corridor that had remained shut for six years following the COVID-19 pandemic.
The reopening marks another step towards economic exchanges between the two countries after recent efforts to restore cross-border engagements, including the resumption of the Kailash Mansarovar Yatra through the Nathula route.
The revival was marked by a ceremonial meeting at the Nathula border gate, where officials from India and China exchanged trade passes, traditional silk khadas and commemorative mementoes in the no man’s land before formally reopening the trade route. The passes were later handed over to traders during an inauguration ceremony at Sherathang near the border.
Sikkim Commerce and Industries Minister Tshering Thendup Bhutia, Gnathang-Machong MLA Pamin Lepcha, senior government officials, traders and residents attended the inaugural programme.
Calling the reopening a significant milestone, Commerce Minister Bhutia said the restoration of border trade was the result of sustained efforts by the Sikkim government in coordination with central government.
“This is an important day for Sikkim. Border trade will strengthen our economy, create opportunities for local entrepreneurs and provide much-needed livelihood support to people living in remote border areas,” Bhutia said.
He added that the revival of the Nathula trade route, along with the reopening of the Kailash Mansarovar pilgrimage through Sikkim, reflects improving engagement between India and China and is expected to generate fresh momentum for the state’s tourism and border economy.
According to the Minister, the State Government has already urged the Government of India to modernise the border trade framework by expanding the list of tradable commodities and increasing the daily trade limit.
At present, every registered trader is allowed to conduct business worth only ₹2 lakh (around US$2,300) per day, a limit traders say no longer reflects present-day market realities.
“The trade limit and the list of approved commodities were fixed years ago. Market demand and currency values have changed significantly, and we have requested the Centre to revise both,” Bhutia said.
Commerce and Industries Secretary Karma D. Youtso said traders and residents had been waiting for the reopening since the trade was suspended in 2020.
“The State Government continuously pursued the reopening with the concerned authorities. Today marks the formal resumption of the trade route after six years,” she said.
Youtso said 25 traders will cross into the Chinese side on Monday, while more are expected to join as additional trade permits are issued.
Although the existing Standard Operating Procedure allows up to 400 trade passes during a trading season, only around 38 traders have received permits so far because approval for reopening came later than usual this year.
Officials said discussions are underway with the Ministry of External Affairs and the State Intelligence Bureau to extend the deadline for issuing passes so that more traders can participate.
Trade will officially begin on August 3 and operate Monday to Thursday, with the border gate opening at 7.30 am Indian Standard Time (10 am Beijing time).
Despite welcoming the reopening, traders said the economic potential of Nathula cannot be fully realised unless the decades-old list of tradable goods is revised.
Under the current arrangement, India exports 36 approved items, including handicrafts, handloom products, agricultural implements, textiles, rice, barley, vegetables, flowers, spices and traditional religious articles. Imports from China include readymade garments, quilts, sheep skin, goat skin, wool, raw silk, yak tails, borax, salt and sugar.
Veteran trader Anil Kumar Gupta, who has been trading through Nathula since 2006, said many traders suffered severe financial losses when the border was abruptly closed during the pandemic.
“Several traders had goods stranded across the border. Some had warehouses and business establishments there, while many financial transactions remained unsettled. We hope the reopening will help us recover,” he said.
However, Gupta argued that products such as yak tails, sheep skin, goat skin and raw silk have become commercially obsolete.
“Nobody trades in many of these items anymore. Today’s market demands industrial products and modern consumer goods. Unless the trade basket is updated, business will remain limited,” he said.
Trader Ankit Kumar Gupta echoed the demand, saying products such as Indian blankets, sugar and other manufactured goods should be included to make border trade commercially viable.
“The reopening strengthens relations between the two countries, but it should also create meaningful business opportunities for traders and local communities,” he said.
Another trader, Tenzing Gyurmee, described the reopening as a “historic moment” after years of uncertainty.
“We are delighted that trade has resumed. Although this year’s trading season is short, we hope it will be successful and that future seasons will be longer. We have also requested the Government of India to expand the list of tradable goods so that more people can benefit,” he said.