India and China have agreed to resume border trade through three designated routes—Lipulekh Pass, Shipki-La Pass, and Nathu-La Pass—after a gap of five years. The agreement was reached during discussions between Chinese Foreign Minister Wang Yi and India’s External Affairs Minister Dr. S. Jaishankar in New Delhi, signalling a thaw in economic engagement along the Himalayan frontiers.
The talks also paved the way for expanding the scale of the Indian pilgrimage to Mount Kailash (Gang Renpoche) and Lake Manasarovar starting in 2026. This development comes as a major boost for Himachal Pradesh, which has been pushing for the reopening of trade via Shipki-La in Kinnaur district.
Trade Route With Historic Significance
Shipki-La, once part of the legendary Silk Route, was formalized as a border trade point under the 1994 Indo-China bilateral agreement. It remained a key hub for trans-Himalayan cultural and economic exchanges before the Covid-19 pandemic forced its closure in 2020. The state government has consistently advocated for its reopening, citing both economic potential and historical importance.
Chief Minister Sukhvinder Singh Sukhu had written to the Centre emphasising that the Shipki-La corridor provides a shorter route to Kailash Mansarovar on the Tibetan side. Himachal Pradesh already has motorable connectivity up to Shipki-La via Rampur Bushahr and Pooh, making it feasible to develop infrastructure for trade and the pilgrimage.
Kailash Mansarovar Yatra to Include Shipki-La
In a letter to the Chief Minister, External Affairs Minister Dr. S. Jaishankar confirmed that the Kailash Mansarovar Yatra, which resumed recently through Lipulekh in Uttarakhand and Nathu-La in Sikkim, will also include Shipki-La as an additional route. The Himachal government has welcomed this move, noting that it would significantly benefit local communities and promote tourism.
The Shipki-La route is considered more practical for pilgrims, as it directly connects to Gartok and onward to Darchen and Mansarovar. Plans are underway to develop base camps and other supporting facilities along the route.
Economic and Cultural Impact
The reopening of Shipki-La is expected to revive traditional trade, which involves barter as well as the exchange of goods such as wool, herbs, and handicrafts. Additionally, it is anticipated to create new opportunities for tourism and cultural exchange in Himachal Pradesh. The state government sees this as a catalyst for regional development, particularly for remote areas in Kinnaur district.
Chief Minister Sukhu expressed gratitude to the Union government for raising the issue with Beijing and securing a positive outcome. “These initiatives will not only restore historic ties but also open up avenues for economic growth and strengthen people-to-people connect,” the Chief Minister stated.
