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Shipki-La India-Tibet border trade to resume after six years

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(TibetanReview.net, Dec16’25) – India–Tibet border trade through the Shipki-La strategic pass in Kinnaur district will resume from Jun 2026, after a gap of six years, as India’s Ministry of External Affairs (MEA) has given political clearance to Himachal Pradesh government for its reopening, reported newindianexpress.com and other Indian news outlets Dec 16. The reports did not say whether China too was reopening this traditional Tibet-border trade.

However, thestatesman.com did say that in a significant diplomatic and economic development, India and China were set to resume limited cross-border trade through the strategically located Shipki-La Pass, marking a rare thaw after decades of restricted engagement along the Himalayan frontier.

Situated in the district’s Pooh subdivision, the barter-based trade will operate via the Land Customs Station (LCS) at Namgia–Shipki-La near the Line of Actual Control (LAC). A trade mart is also likely to be set up near the pass to facilitate traders and tourists, said the newindianexpress.com report.

Imports and exports from this border point will be restricted to items notified by the Union government. Currently, 20 items are permitted for import, including wool, pashmina, sheep skin, yak tails, yak hair, salt, shoes, blankets, quilts, carpets and herbal medicines. For export, a total of 36 items are allowed, including coffee, tea, barley, rice, wheat, flour, dry fruits, tobacco, cigarettes, canned food, spices, watches, shoes, utensils, and handloom and handicraft items.

Trader registration will be carried out by the Pooh tehsildar-cum-trade officer. Applicants will need to submit identity proof, residential certificate, past trade records (if any), and passport-size photographs.

Locals from 14 border villages, including Namgia, Chuppan, Nako, Pooh and Chango, are economically dependent on this cross-border barter trade conducted through Shipki-La. Trade passes are issued by the Union Ministry of Commerce to facilitate the activity.

The report cited Kinnaur Indo–China Trade Association president Hishey Negi as saying the association had sought a minimum of 150 trade passes. “We have requested renewal of import and export codes issued by the Director General of Foreign Trade (DGFT) and demanded a single-window system for security clearances. We have also urged the district administration to organise skill-building workshops so traders can understand market potential, demand and supply, and how to sell items like borax, szaibelyite and china clay imported from China.”

The report said traders, mostly from Nako, Chuppan, Chango and Namgia, typically travel to Tibet in September and October. In 2015, 71 Indian traders went to Tibet via this route, followed by 75 in 2016, 34 in 2017, 37 in 2018 and 45 in 2019. The highest number was recorded in 1994, when 90 traders crossed through this border point.

The border trade between India and Tibet through Shipki-La in Himachal Pradesh, Nathu La in Sikkim and Lipulekh Pass in Uttarakhand came to a halt in 2020 after the Chinese army violated bilateral protocols in eastern Ladakh, the report noted.

The Shipki-La move is seen as an important Confidence-Building Measure between the two Asian economies, whose long and sensitive border has largely remained closed to commercial exchange since the mid-20th century, noted the thestatesman.com report.

Trade routes across Tibetan plateau region were largely shut following the Chinese occupation of Tibet and subsequent geopolitical tensions. The reopening of Shipki-La for regulated trade is therefore viewed as a measured but symbolically important step towards renewed economic engagement across the high Himalayas, the report added.

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