India and China are moving towards a significant breakthrough in their bilateral relations with the decision to resume trade through the historic Shipki-La pass in Himachal Pradesh’s Kinnaur district. Trade across this traditional Indo-Tibetan route was suspended in 2020 due to the COVID-19 pandemic and prolonged border tensions, but recent diplomatic efforts have yielded positive results.

During his August 2025 visit to New Delhi, Chinese Foreign Minister Wang Yi agreed in principle to India’s request to restore formal trade through Shipki-La. This initiative was strongly backed by the Himachal Pradesh government, with Chief Minister Sukhvinder Singh Sukhu playing an active role by writing to the Union government to highlight the economic and cultural significance of this ancient trans-Himalayan trade route.

Following his intervention, India’s Ministry of External Affairs, led by External Affairs Minister S Jaishankar, formally took up the issue with Beijing, leading to a consensus on reopening the corridor for bilateral commerce.

The Shipki-La route, which has long been viewed as an offshoot of the legendary Silk Route, was officially recognized as a designated Indo-China border trade point under the 1994 bilateral agreement between the two nations. Historically, the pass served as an important gateway for the exchange of wool, salt, handicrafts, spices, and other goods across the Himalayas.

Its revival is being seen not only as a pathway for restoring traditional livelihoods in Himachal Pradesh’s tribal Kinnaur region but also as a move that could boost broader regional connectivity and economic engagement. The state government has already conveyed its readiness to coordinate with the Union Commerce Ministry to complete the procedural and codal formalities required for resuming cross-border trading activities. With existing road connectivity up to Shipki-La via Rampur Bushahr and Pooh, Himachal Pradesh is well-positioned to develop additional infrastructure, including base camps and logistics facilities, to support both trade and cultural exchanges.

Beyond trade, the development carries deep spiritual and cultural significance due to the prospects of resuming the Kailash Mansarovar Yatra through Shipki-La. The route, leading via Gartok to Darchen and onward to Lake Mansarovar in Tibet, is considered comparatively shorter and more accessible on the Tibetan side compared to the existing corridors through Lipulekh in Uttarakhand and Nathu La in Sikkim.

The Himachal Pradesh government’s communications to the Union government stressed the feasibility of developing supporting infrastructure for pilgrims given the existing road network. This proposal has received a positive response from Beijing, and initial discussions have indicated the possibility of formalizing Shipki-La as an alternative pilgrimage route.

The External Affairs Minister has already confirmed that the Kailash Mansarovar Yatra has resumed after a five-year hiatus through Lipulekh and Nathu La, while consultations with China are ongoing to add Shipki-La to the network.

The reopening of the Shipki-La route is being hailed as a milestone in rebuilding trust between India and China, especially at a time when both sides are cautiously navigating their complex bilateral relationship following years of border tensions. Strategically, the move adds to the effort to normalize people-to-people contact, increase tourism, and strengthen cultural as well as economic linkages across the Himalayas.

For Himachal Pradesh, the initiative is expected to bring fresh opportunities for trade-based livelihoods, growth in service and hospitality sectors catering to pilgrims and traders, and overall economic diversification in the border regions of Kinnaur. Symbolically, the resumption of cross-border trade and pilgrimages through Shipki-La marks a revival of centuries-old ties of commerce and faith, reaffirming the enduring relevance of the Himalayan frontiers as bridges between civilizations rather than barriers of division.

Based On PTI Report