India and China will reopen border trade through the Nathu La Pass starting August 1, ending a six-year suspension that began during the COVID-19 pandemic.

What’s actually happening at the border

The Nathu La Pass sits in Sikkim, on what was once part of the ancient Silk Road network connecting Asia with West Asia and Europe. It originally reopened for trade back in July 2006 after being shuttered for over 40 years following the 1962 Sino-Indian War. Then COVID hit in 2020, and the gates closed again.

Around 600 registered Indian traders stand to benefit directly, along with transport operators and allied businesses in the border regions of Sikkim, Uttarakhand, and Himachal Pradesh.

Trade via the Lipulekh Pass already resumed in June 2026, with 26 passes issued for Indian traders. Discussions are reportedly underway to reactivate additional parallel routes like Shipki La.

The whole thing traces back to agreements hammered out during bilateral dialogues in 2025 between India’s Special Representatives and their Chinese counterparts.

The macro picture and what to watch

For context, India-China bilateral trade was already massive before the pandemic disruptions. China has consistently been one of India’s largest trading partners, and that relationship persisted even during the years of diplomatic frost. What the border trade reopening signals is not so much a change in trade volume, which was largely flowing through maritime and other channels anyway, but a change in political temperature.