India and China are preparing to resume border trade through the Lipulekh Pass this year, reviving a route that has remained closed for the past six years. The move comes despite Nepal’s continued claim over the disputed territory.
According to Indian media reports, authorities in Uttarakhand have begun logistical preparations for the seasonal trade, which typically runs from June to September. The decision follows clearance from India’s central government, allowing trade activities to restart through the high-altitude Himalayan corridor.
Lipulekh lies in a sensitive tri-junction area involving Nepal, India and China. Nepal has included the region in its official map and has consistently asserted its sovereignty over the territory. However, the area remains under Indian control, and past agreements between India and China regarding the pass have drawn objections from Kathmandu.
The route connects the Indian side of Uttarakhand with Tibet’s Purang region and has historically served as a trading link for local communities. Preparations on the Indian side are reportedly underway following administrative directives, including coordination between central and state authorities.
The resumption of trade is expected to facilitate cross-border exchange of goods and revive local economic activity in the border region. However, it also brings renewed attention to the unresolved territorial dispute involving Nepal.
Nepal had previously objected to bilateral understandings between India and China over Lipulekh, particularly in 2015 and 2020, arguing that any decisions regarding the area should involve all three countries.
While the latest development signals closer coordination between India and China on trade, it may also prompt diplomatic sensitivity in Kathmandu, where the issue of territorial integrity remains politically and strategically significant.