Nathula Pass border trade resumes after 6 years, set to boost economy

Sikkim Commerce Minister TT Bhutia welcomed the resumption of border trade via Nathula Pass after a six-year gap. He said the move will boost the economy for border communities and local entrepreneurs, with proposals to update tradable items.

Sikkim Commerce and Industries Minister TT Bhutia on Saturday welcomed the resumption of border trade through the Nathula Pass after a gap of six years, saying it would provide a major economic boost to border communities, local entrepreneurs and traders.

Speaking to reporters at Nathula along the Indo-China border, Bhutia said the reopening of trade follows improving connectivity between the two countries, including the resumption of the Kailash Mansarovar Yatra through Sikkim last year. "After six years, we have resumed border trade. Regarding Indo-China, we have had a good connection since last year's Kailash Mansarovar Yatra, which started from Sikkim. Now, the Nathula border trade has also become possible," Bhutia said.

Economic Boost and Trade Modernization

He said the reopening would particularly benefit residents of border areas, where economic opportunities remain limited. "The people living in the border districts do not have many economic activities. Through this trade, their economy and livelihoods will be supported. Sikkim's handlooms, handicrafts and organic products have global appeal. By facilitating this trade, we believe Sikkim's economy will grow, and young entrepreneurs will also benefit," he said.

The minister said traders had sought changes to the existing list of tradable goods and that the state government had already taken up the matter with the Centre. "There are around 36 items on the trading list. The Directorate General of Foreign Trade and the Ministry of Commerce and Industry have already issued a notification to increase the volume of business. We have also sent a proposal to the DGFT seeking modifications to the list, and we expect a positive response," he said.

Bhutia also said the state had proposed an increase in the daily trading limit for each trader. "The current trading limit is Rs 2 lakh per trader per day. Before COVID-19, the currency conversion rate was different, but the value of currency has changed significantly now. We have submitted a proposal to increase the permitted currency limit," he added.

Expressing happiness over the reopening, Bhutia said trade had remained suspended since the COVID-19 pandemic. "After six years, the trade has resumed. We are very happy. It was closed because of COVID-19, and now it has started again. Let us see how it progresses. Earlier, it was functioning well. We also believe the list of tradable items should be updated," he said.

Local Traders Welcome Resumption

A local trader also welcomed the reopening of the trade route and thanked the Sikkim government for its efforts. "We are very happy and would like to thank Chief Minister Prem Singh Tamang. This has become possible because of his efforts. Today is a day of joy for all traders," the trader told ANI.

The trader said the existing list of tradable items required revision. "Our list includes traditional items like horses, sheep and goats. These should now be replaced or classified with industrial products. We have submitted an application to the department and hope the government responds positively," he said.

He added that business would initially pick up gradually as traders complete documentation and procure stock. "We have heard that around 500 traders have applied and nearly 300 have submitted their forms. The verification process has been completed, and we hope all traders receive their passes soon. Business should gain momentum in about two weeks," he said.

Historic Trade Route Revived

Border trade through the historic Nathula Pass in East Sikkim resumed today after a suspension of nearly six years, marking the reopening of a key segment of the ancient Silk Route. The trade route had remained closed since 2020 due to the COVID-19 pandemic and subsequent border tensions between India and China.

A formal reopening ceremony was held at Nathula, with officials from both countries participating in the event. The resumption of trade is expected to provide a significant boost to registered traders, transport operators, and local businesses, while reviving economic activity in the border region.

Located at an altitude of over 14,000 feet, Nathula was reopened for border trade in 2006 after remaining shut for more than four decades following the 1962 India-China war. The route serves as one of the designated border trade points between India and China and traditionally operates from May to November each year.

Trade bodies and officials have welcomed the development, expressing hope that the revival of cross-border commerce will create fresh economic opportunities for border communities, strengthen regional development, and further enhance people-to-people and economic ties between the two neighbouring nations. (ANI)

(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)