Resumption of India-China Trade via Shipki La Pass

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Cross-border trade between India and China through Shipki La Pass resumed on 1st August 2026.
This bilateral trade restarted after a 6-year suspension caused by the Covid-19 pandemic.

Shipki La is a high-altitude mountain pass located at over 4,000 metres elevation in the Kinnaur district of Himachal Pradesh.
The pass sits along the India-China border connecting India directly with the Tibet Autonomous Region.
Traders previously referred to this mountain route as Pema La or Shared Gate.
The Indo-Tibetan Border Police (ITBP) formally renamed the route Shipki La following the 1962 border conflict.

The Sutlej River, known as Langqen Zangbo in Tibet, enters Indian territory through the Shipki La region.
A barren 28-km stretch connects Namgia, which is the last Indian village, to the pass.
Severe snowfall during winter months completely blocks the pass and cuts off traffic.

Shipki La holds significant strategic value because Indian military posts occupy higher elevations than Chinese positions.
Indian security agencies maintain and operate multiple security buildings and infrastructure units in this area.

The mountain pass forms a historical section of the ancient Silk Route used for centuries for trade between Tibet and Himachal Pradesh.
Before Indian independence, Tibetan merchants used Shipki La and the Hindustan-Tibet Road to reach Rampur Bushahr for the annual Lavi Fair.

Border trade stopped after the 1962 India-China War and restarted in the early 1990s following a formal bilateral agreement.
Trading activity occurs seasonally for a few months starting every June once snow melts from the pass.
Imports into India mainly consist of wool, livestock, yak products, religious items, and various minerals.
Exports from India include food grains, spices, tobacco products, timber, and metal tools.
Shipki La is unique among border trading points because merchants conduct trade through a traditional barter system instead of using money.
In contrast, trade through Lipulekh Pass in Uttarakhand and Nathu La Pass in Sikkim relies on standard currency transactions.