Gangtok, August 2: In a significant development for bilateral trade and border connectivity, India and China have officially resumed border trade through the historic Nathu La Pass in East Sikkim after a suspension of nearly six years. The reopening came into effect on 1 August 2026, marking the revival of one of the oldest trade routes connecting the two countries.

Historic Silk Route Reopens

Nathu La, located at an altitude of over 14,000 feet, forms part of the ancient Silk Route linking India’s Sikkim with China’s Tibet Autonomous Region. Border trade through the pass had resumed in 2006, but operations were suspended in 2020 due to the COVID-19 pandemic and remained closed thereafter.

Official Reopening Ceremony

The resumption of trade was marked by an official ceremony attended by officials from both India and China at the Nathu La border trading point.

The reopening is expected to revive economic activity in the region and provide a major boost to registered traders, transporters and businesses dependent on cross-border commerce.

Boost for Border Economy

The reopening of the trade route is expected to benefit:

  • Registered border traders
  • Transport operators
  • Warehouse operators
  • Small businesses in East Sikkim
  • Local communities dependent on border trade

Traders have welcomed the decision, though many have urged authorities to expand the list of items permitted for import and export to make cross-border trade more commercially viable. Around 300 traders are reportedly awaiting trade passes.

Significance for India-China Relations

The resumption of border trade is being seen as another positive step in restoring people-to-people and economic engagement between India and China, following the gradual resumption of other exchanges such as the Kailash Mansarovar Yatra earlier this year.

While broader boundary-related issues between the two countries remain unresolved, the reopening of Nathu La is expected to strengthen regional connectivity and support economic development in India’s border areas.

A Strategic Trade Corridor

Nathu La is one of the three designated India-China border trade points, alongside Shipki La in Himachal Pradesh and Lipulekh Pass in Uttarakhand.

Officials believe the resumption of trade through Nathu La will strengthen India’s border economy, improve livelihoods in Sikkim and reinforce the strategic importance of the historic Himalayan trade corridor.