India-China border trade through the Lipulekh Pass is set to resume on August 1, 2026, after a suspension that began in 2019 due to the COVID-19 pandemic, according to the Economic Times. In the first phase, the Chinese administration in Tibet has allowed only 20 Indian traders to cross the border into Purang (Taklakot) to check preparedness and inspect stock left behind previously.
First Phase Details
The decision to limit the initial batch to 20 traders was made by the Chinese side citing lack of accommodation facilities in Purang. The traders will cross the border without any goods to assess the arrangements and verify the stock they had previously left behind, officials told the Economic Times on Tuesday, July 28, 2026.
Ashish Joshi, the Sub-Divisional Magistrate (SDM) and Trade Officer of Dharchula, stated that the Border Trade Organization has been asked to submit the names of 20 traders for this first phase.
Historical Context
Border trade via the Lipulekh Pass was originally resumed in 1992, after coming to a complete halt following the 1962 India-China war. The trade is primarily conducted by tribal traders from the Vyans, Darma, and Chaudas valleys of Pithoragarh district in Uttarakhand. These communities had centuries-old trade ties with Western Tibet prior to 1962, and the cessation of trade caused them significant economic loss.
The trade was suspended in 2019 due to the COVID-19 pandemic and is considered vital to the economy of the border region. Its resumption is expected to bring significant relief to local traders and tribal communities living along the border.
Timeline of Border Trade at Lipulekh
| Event | Year | Details |
|---|---|---|
| Trade halted | 1962 | Following the India-China war |
| Trade resumed | 1992 | Lipulekh Pass reopened for bilateral trade |
| Trade suspended again | 2019 | Due to COVID-19 pandemic |
| Tentative resumption date | June 1, 2026 | Postponed due to lack of amenities in Purang |
| Approved resumption date | August 1, 2026 | First phase with 20 traders, no goods |
Local Impact and Administrative Steps
The resumption of border trade is expected to provide a much-needed economic boost to the tribal communities in the Vyans, Darma, and Chaudas valleys. The trade had been initially scheduled to commence on June 1, 2026, but the Tibetan administration requested more time due to a lack of basic amenities such as accommodation and shops at the Purang trading mart. With the necessary arrangements now in place, the way has been cleared for the resumption starting August 1, 2026.
The Border Trade Organization, directed by Ashish Joshi, is now tasked with selecting the 20 traders for the initial assessment phase. This measured restart aims to ensure that all logistical and infrastructural requirements are met before full-scale trade resumes.
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