India and China have agreed to resume their border trade through Uttarakhand’s Lipulekh Pass from June 2026, ending the suspension of engagement since the 2020 Ladakh military conflict and the COVID pandemic.
India’s Ministry of External Affairs (MEA) notified the local authorities in Lipulekh to prepare for the trade resumption, apart from re-establishing the customs infrastructure in Uttarakhand’s Pithoragarh district.
The bilateral trade through this land route would continue through the summer and involve issuing permits for trade through Lipulekh
The move is an effort to restore the historic commercial route dating back several decades and complements the revival of the Kailash Mansarovar Yatra through the same trade route, according to Indian officials.
The Lipulekh pass opening for trade is part of a larger effort by the two nations to reestablish their trading ties, including in Shipki La in Himachal Pradesh and Nathu La in Sikkim, they said.
But the Lipulekh decision has raised the hackles of Nepal, which has been claiming the territory as its own, including Limpiyadhura and Kalapani.
Nepal’s Ministry of Foreign Affairs reiterated its position that these areas are “integral parts of Nepal” as per its constitutionally adopted map, and urged New Delhi not to undertake trade or other activities there.
In response, India’s MEA spokesperson Randhir Jaiswal stressed that the government’s stance has been “consistent and clear,” pointing out that “border trade between India and China through Lipulekh Pass commenced in 1954 and has been going on for decades.”
He dismissed the expanded territorial claims of Nepal as “neither justified nor based on historical facts or evidence.” But, he said, India was open to constructive dialogue with Nepal to resolve the outstanding boundary issues.
In recent months, India and China have taken several confidence-building measures aimed at restoring peaceful ties that came under strain after the Chinese military moved to the eastern Ladakh border in an aggressive manoeuvre, resulting in a matching response from India.
The Galwan clash in mid-2020 that left 20 Indian soldiers and many more Chinese soldiers dead left a deep scar in the carefully built bilateral relations between the two countries.
The Ladakh military conflict, coupled with the COVID-19 pandemic restrictions, led to a disruption in the bilateral ties, including trade through the border passes.
Since the military disengagement understanding in late 2024, India and China have initiated efforts, including the resumption of the Kailash Mansarovar Yatra, as one of the most visible signs of a cautious thaw in their relationship.
“The yatra will happen this year, and we are making preparations. More information will be put out for the public soon,” Jaiswal said, emphasising the two nations’ intent to revive the yatra route that remained closed since 2020.
China’s Ministry of Foreign Affairs spokesperson Guo Jiakun said, “As agreed between China and India, the pilgrimage will resume this summer. Preparations are now underway on both sides.”
He noted that Beijing recognised the importance of the Kailash Mansarovar Yatra as a key pilgrimage for Indians and for people-to-people ties between the two nations.
India and China also resumed their direct flights after suspending them five years ago, restoring connectivity between them as a key measure to ensure bilateral trade and people-to-people contact.