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Steps being taken to increase trade with China through land route
New Delhi: July 14, 2004

Steps are being taken, on an ongoing basis, for increasing Indian exports of engineering goods including trade through land route to China. These include participation in trade fairs/exhibitions, exchange of delegations at both governmental and business levels etc.

Border trade with China was resumed following the signing of an MOU on Resumption of Border Trade through Lipulekh Pass in December 1991. The Protocol for extension of border trade to Shipkila Pass was signed in September 1993. Accordingly, border trade between India and China is being conducted through two routes i.e., Gunji in Pithoragarh District of Uttaranchal along with Gunji Pulan (Tibet) land route and village Namgya Shipkila in Kinnaur District of Himachal Pradesh along the Namgya-Shipkila-Shipki Jijubu, land route. During the visit of the then Prime Minister of India to China in June 2003, the two sides agreed to open a third route in Sikkim from Nathula Pass for border trade. Border trade from this route is yet to start.

Major items of export from India to China are diverse and inter-alia, include ironore, primary & semi-finished iron & steel, plastic & linoleum products, drugs, pharmaceuticals & fine chemicals, processed minerals, marine products, petroleum products etc. As far as trade through land route is concerned, following items are allowed to be exported freely, viz., agricultural implements, blankets, copper products, clothes, textiles, cycles, coffee, tea, barley, rice, flour, dry fruit, dry & fresh vegetables, vegetable oil, gur & misri, tobacco, snuff, cigarettes, canned food, agro-chemical, local herbs, dyes, spices, watches, shoes, kerosene oil, stationery, utensils and wheat.

Press Release: PIB
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