Government Clears Lipulekh Route for Trade Ahead of June-September Season

The Government of India has approved the reopening of the Lipulekh Pass in Uttarakhand for border trade with China, marking a significant development after a prolonged suspension. The decision was cleared on March 22, with Foreign Secretary Vikram Misri issuing an official No Objection Certificate (NOC) to Uttarakhand Chief Secretary Anand Vardhan, allowing trade operations through the strategic route. Border trade between India and China is set to resume after a gap of six years. The Lipulekh Pass will be opened for the annual trading season between June and September this year. The route had remained closed since the outbreak of the COVID-19 pandemic and the violent clashes in the Galwan Valley in 2020. To facilitate trade through the pass, the Customs Department and the Dharchula administration will issue special trade passes to registered traders. In addition, arrangements will be made for transit camps, along with essential services such as banking, communication facilities, medical support, and security for traders operating in the region. Historically, trade through Lipulekh Pass was completely suspended following the Sino-Indian War, along with the Kailash Mansarovar Yatra. It was later resumed in 1991-92 under a bilateral agreement between the two countries. Since then, trade activities have generally taken place annually from June to September. Until now, trade through the pass has been conducted on a barter basis, involving the exchange of goods. However, during a visit by Chinese Foreign Minister Wang Yi to India in August 2025, both nations agreed to conduct trade using their respective currencies — the Indian rupee and the Chinese yuan. The reopening of the pass follows a consensus reached in August 2025 during a high-level meeting between India’s National Security Advisor Ajit Doval and Wang Yi regarding the resumption of trade through the Lipulekh route.