India’s trading Border Trade With China

India shares its 23% (3488km) international border with china through its five state like 1) Jammu and Kasmir, 2)Himachal Pradesh, 3) Uttara Khand, 4) Sikkim, 5) Arunachal Pradesh. Border trade between India and China started in 1992 and 1993 through Lipulekh in Uttra khand and Shipkila in Himachal Pradesh respectively. Nathu La pass in Sikkim, Become functional on July 2006 through an MOU on expanding border trade signed on June 23,2003. Since, then Nathula has become a strategic point for both countries. It is a tourism point also and China opened Nathu La Pass for Kailash mansarovar pilgrims in 2015. Nathu la is an important gateway for supplying food articles to Tibet autonomous region of western China. It is relatively cheaper to Import such goods from Sikkim than bringing it all the way from south-east china for this purpose it was expected to help achieving economic prosperity in the areas surrounding the Nathula pass in both countries. The border trade remains officially open about six months every year from May to November. Trade up to Rs 25000/per day is permitted without Importer and Exporter code through Nathu La. However, permit free of Rs 50 & 0.5 Yuan are imposed on every Vehicle entering Sikkim from china and entering china. Initially in 2006, 15 items for Import from China and 29 items for Export from India were permitted for free trade through Nathu La, which was revised to 20 and 37 items respectively in 2012. But trade through Nathu La open for only four Month that is from June to September and four days a week due to hostile weather condition.

Principal Export to China: Wool, Goat cashmere, Goat skins, Sheep skins, Yak tails, Goats, sheep, Yaks Hair, Horses, salt, Borax, China clay, Butter, silk, Readymade garments, Shoes, carpets.

Principal Import to China: Agricultural Implements, Blankets, Copper products, clothes, textiles, cycles, Coffee, tea, Barley, Rice, Dry fruits, Spices, Watches, Wheat, Oil, Flowers, Local Herbal Medicines.