India-China trade
Border trade between India and China is going to start once again after six years through Lipulekh Pass in Uttarakhand. On June 26, the first group of Indian businessmen will leave for Tibet. However, this decision has once again rekindled the old border dispute with Nepal.
According to the administration, 26 business passes have been issued in the first phase, which includes 17 traders and 9 assistants. Custom office has also been opened in Gunji and traders have delivered their goods to the warehouses located near Lipulekh Pass.
According to officials, more than 103 traders have applied and passes can be issued to 25 more traders soon in the second phase. This time a big change will also be seen in business. Whereas earlier goods were transported through mules and yaks, now due to better road connectivity, most of the journey will be completed through vehicles, which will reduce both time and cost.
Nepal expressed objection
Lipulekh Pass is located near the tri-junction of India, China and Nepal. Nepal has been claiming Lipulekh, Kalapani and Limpiyadhura areas for a long time. Nepal says that India and China did not consult it before restoring border trade and resuming the Kailash Mansarovar Yatra.
Nepal had earlier also lodged a formal protest in 2015 and 2020 on the agreements related to script between India and China. Nepal’s Parliament had called it an issue related to its sovereignty.
What is India’s stand?
India says that Lipulekh is a part of Uttarakhand and border issues should be resolved through bilateral talks between India and Nepal. New Delhi considers this trade as a historical and traditional activity, which is linked to the livelihood of border communities.
Sign of softening in India-China relations
The resumption of script trade is a sign of the gradual softening of relations between India and China. After the Covid pandemic and border tensions of 2020, both countries are taking steps towards restoring trade and people-to-people contacts.
Although the resumption of trade is expected to bring major benefits to the economy of the border areas, but due to Nepal’s territorial claim, Lipulekh Pass may once again remain a sensitive issue of South Asian diplomacy in the coming days.
