ICTC | India China Trade Center

India, China to resume Border Trade via Shipki-La after decades

The Ministry of External Affairs (MEA) has granted formal approval to restart trade through Shipki-La, situated in the Pooh subdivision of Kinnaur, with operations expected to commence from June next year.

In a significant diplomatic and economic development, India and China are set to resume limited cross-border trade through the strategically located Shipki-La Pass in Himachal Pradesh’s tribal Kinnaur district, marking a rare thaw after decades of restricted engagement along the Himalayan frontier.

The Ministry of External Affairs (MEA) has granted formal approval to restart trade through Shipki-La, situated in the Pooh subdivision of Kinnaur, with operations expected to commence from June next year.

The move is being 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.

Following the central government’s clearance, the Kinnaur district administration has initiated preparatory measures. Deputy Commissioner Dr. Amit Kumar Sharma chaired a high-level meeting on Monday involving departments and stakeholders associated with the Shipki-La Trade Authority.

The meeting focused on critical operational aspects including road connectivity, customs infrastructure, security protocols, medical and emergency services, and inter-departmental coordination in the ‘Shipki-La–Namgiya sector.

According to officials, trader registration will be undertaken by the Tehsildar, Pooh, and trade passes will be issued only after thorough verification. Applicants will be required to submit identity proof, residence certificates, prior business records where available, and passport-size photographs. Trade will be strictly confined to goods notified by the Government of India, with no deviation permitted.

Security arrangements at the pass will be jointly supervised by the Indo-Tibetan Border Police (ITBP) and local police, while the Customs Department will deploy requisite staff at the Shipki-La customs station and circulate the approved list of import and export items. Comprehensive inspection of goods will be mandatory for both outbound and inbound consignments.

India and China share thousands of kilometres of border, much of it running alongside the Tibetan plateau, which has historically functioned as a geopolitical buffer. Trade routes across this region were largely shut following the Chinese occupation of Tibet and subsequent geopolitical tensions.
The reopening of Shipki-La for regulated trade is therefore being viewed as a measured but symbolically important step towards renewed economic engagement across the high Himalayas.

Source: https://www.thestatesman.com

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