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More items for land trade with China under study

Sandeep Dikshit

More overland trading routes proposed


  • Barter system overwhelmingly in favour of China
  • Infrastructure to be upgraded on all three routes

    NEW DELHI: The Government is evaluating proposals to add more items for land trade with China. It is also examining proposals for more overland trading routes with China and other countries on India's eastern flank, says Minister of State for Commerce Jairam Ramesh.

    With exports restricted largely to rice through Nathu La on the Chinese border with Sikkim, the Government is examining a study, which has suggested revision of the list of tradable items.

    The focus is on Nathu La, opened last year, among the three overland routes with China because of natural impediments along the other two — Lipulekh (Uttarakhand) has no Chinese trader visiting the Indian side as only a mule track covers the last leg of the road. Roads are equally poor on the route through Shipkula (Himachal Pradesh). A one-way barter system prevails at both places with the balance of trade overwhelmingly in China's favour.

    Comparatively, Nathu La, part of the interconnected routes on the ancient Silk Route, has gentle gradients and a passable motorable road on the Indian side. "While the list of trading items would form part of bilaterals, what we can do unilaterally is quickly improve the infrastructure on the Indian side,'' says Mr. Ramesh.

    Infrastructure improvement at Nathu La will take place along with similar upgrade along the other routes. For instance, restrictions on mobile towers along the borders have largely been scrapped and Indian mobile services are available on the Indian side of the border with Bangladesh at Petropole. Only signals from a Bangladesh mobile company were received till a few months ago.

    The intention is to restore the infrastructure which existed in the pre-1962 era such as facilities to house Chinese traders and make the area hospitable to encourage tourist traffic. Far from the regular warehousing facility earlier, Army horse stables serve as a temporary trading mart.

    Mobile connectivity and electricity supply are absent and no public facilities exist.

    Better roads can extend the trading season to eight months as against the present eight hours and four days a week during four months.

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