India–China Plan to Resume Trade via Shipki-La in Himachal Pradesh

One of the three Sino-Indian border trade routes is situated at the district of Kinnaur (Himachal Pradesh) called as Indo-China border trade route at Hopki-La. Trade was suspended in 2020, owing to the COVID-19 pandemic. During the recent visit of the Chinese FM, Wang Yi, it agreed in principle with the proposal of resumption by India. The step was prompted by Sukhvinder Singh Sukhu, the CM of Himachal who had written to the Union government.

In News

• The trade route was closed in 2020 because of the pandemic.
• China has acknowledged to reconsider opening Shipki-La.
• Those involved also include re-establishing Kailash Mansarovar Yatra through Shipki-La.

Key Points

Trade Resumption

• Paperwork is now with the Union Commerce Ministry.
• The revival of Indo-Tibetan trade: wool, herbs, handicrafts.
• Due to the economic needs of the people living around the borders.

Political Efforts

• Consistent affronting by Himachal government
• China was formally taken up on the matter by the Centre.

Cultural and religious Dimension

• Kailash Mansarovar Yatra is already by way of Lipulekh and Nathu La Reed.
• Another pilgrimage route may be that of Shipki-La.

Strategic Significance

Economic Connectivity

• Brings in revenues and employment in Himalayan remote districts.
• Enhances border economy by formalisation of trade connections

Diplomatic and Bilateral relations

• A first positive result in India-China relations since the Galwan clash of 2020.
• Through its activities, Acts acts as a confidence-building measure in the middle of tensions.

People to People/Culture Links

• Increases cultural diplomacy of India by means of Yatra routes.
• Promotes spiritual connectedness and culture redevelopment.

Security & Geopolitics

• Reentry should go hand in hand with vigilance by the border.
• Helps India to be prepared to be on the safer side.

Challenges

• Border tensions, unsettled LAC.
• On the Indian side, there is bad infrastructure (roads, logistics).
• The threat of economic optimism eclipses security issues.

Way Forward

• Restart trade with strict precaution measures.
• The Ministry of Defense (see Shipki-La) reopened as confidence-building, not concession.
• Integrate revival with revival of border area development schemes.

Conclusion

As an Indo-Tibetan trade route, the reopening of Shipki-La can revive the old days of trade, boost local economy as well as broaden cultural connections. Even though it represents diplomatic development, India should be guided by economy and sound strategic caution. In the case of Himachal Pradesh, it brings not only attractiveness in terms of economic gain but also cultural credibility.