India and China Resume Border Trade After Six-Year Gap

The Government of India and the Government of China resumed cross-border trade on August 1, 2026, reopening the historic Silk Route passes at Shipki La and Nathu La. The routes had been closed since 2020 due to the COVID-19 pandemic and tensions following the Galwan Valley clashes.

At Shipki La in Himachal Pradesh, Revenue and Horticulture Minister Jagat Singh Negi flagged off 16 traders and inaugurated the Chhuppan Trade Mart to facilitate the barter exchange of 72 Indian and 30 Tibetan items. At Nathu La in Sikkim, trade will operate from May to November, focusing on a list of 36 permitted goods including agricultural equipment and handicrafts. To support the reopening, the Indo-Tibetan Border Police deployed additional troops, including its first all-women unit.

In Sikkim, Commerce and Industries Minister TT Bhutia noted that the resumption follows improved connectivity and the previous year's return of the Kailash Mansarovar Yatra. Approximately 500 traders have applied for permits, though officials expect activity to start slowly during the verification process. To modernize the trade, the Sikkim government and local associations have requested that the central government expand the approved trade basket beyond livestock to include industrial products and increase the daily trading limit of Rs 2 lakh per trader to account for currency fluctuations.