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Home ›› Trade ›› Market Access ›› India-China Border Trade via Lipulekh Pass to Resume After 6-Year Hiatus

India-China Border Trade via Lipulekh Pass to Resume After 6-Year Hiatus

India and China will resume border trade through the Lipulekh Pass after a six-year suspension. The Dharchula administration has issued 26 trade passes to 17 traders and 9 helpers, and a customs office has been established at Gunji. The first batch of Indian traders is expected to reach Tibet on June 26, while a second batch of 25 traders is under process.

iG
iGEN Editorial
July 8, 2026
India-China Border Trade via Lipulekh Pass to Resume After 6-Year Hiatus

India and China are set to resume bilateral border trade via the Lipulekh Pass after a six-year suspension, according to the Economic Times. The Dharchula Sub-Divisional Magistrate (SDM) and Trade Officer Ashish Joshi confirmed that 26 trade passes have been issued, covering 17 traders and 9 helpers. A customs office has also been opened at Gunji to facilitate cross-border transactions.

"We expect the first batch of Indian traders to reach Tibet on June 26, as they have already stored their goods in warehouses at villages near the Lipulekh pass," Joshi said. The administration has received applications from more than 103 traders and is currently planning to issue trade passes for a second batch of 25 traders shortly.

Trade Pass Issuance Status

The resumption involves a phased issuance of trade passes. The following table summarizes the current allocation:

Batch Traders Helpers Total Passes Expected Date
First 17 9 26 June 26, 2026
Second (planned) 25 (estimated) TBD

Applications from over 103 traders are pending, indicating strong interest in reviving the traditional trade route.

Logistical Challenges for Returning Traders

Jeewan Singh Rongkali, president of the Bharat-Cheen Vyapar Samiti in Dharchula, highlighted immediate concerns for traders returning after the long hiatus. He stated:

"Upon reaching the Tibetan mart, our immediate priority is to check the condition of our goods stored there six years ago. Only after assessing the damage will we approach the government for a relief package to help compensate for the losses incurred due to delayed storage."

This underscores the physical and financial risks associated with the prolonged suspension, as goods left in warehouses for years may have deteriorated.

Implications for Trade Professionals

For importers, exporters, and customs brokers, the reopening of the Lipulekh Pass signals renewed market access along the India-China border. The establishment of a dedicated customs office at Gunji streamlines clearance procedures. However, traders must prepare for potential damage to pre-stored inventory and possible delays in compensation claims. The phased issuance of trade passes suggests a controlled ramp-up, with the second batch of 25 traders following initial assessment of the first batch's experience. Bilateral trade through this route had been dormant since 2020, and the resumption is a key development for regional commerce.


Sources: Economic Times – Foreign Trade

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