— PHOTO: PTI

NEW AVENUES: Indian traders entering China being checked at the Nathu La pass that was reopened on Wednesday after winter break. They are heading this time for Donchingang, a new trade destination, 5 km ahead of Rinchingang.

NEW DELHI: Minister of State for Commerce Jairam Ramesh has described the three-month extension in the trading season through the Nathu La pass as a "small beginning" in the move towards full-fledged trading between India and China through a land border. Border trade between India and China through the pass in Sikkim resumed on Tuesday (May 1) after the winter break and will continue till November 30. This means that trade began a month earlier than last year and will continue for two additional months, instead of closing on September 30.

"We have increased the duration of trade but still have a long way to go. The real issues that are inhibiting trade are upgrading of the trade infrastructure on the Indian side and negotiating a new protocol with China which move from border trade to trade through the border," said Mr. Ramesh who has visited the pass several times and attempted to revitalise trade through this off-shoot of the ancient silk route that was closed after the 1962 Sino-Indian war and reopened last year.

"Both sides are still wedded to the concept of border trade rather than trade through the border. Our infrastructure is pathetic compared to facilities on the Chinese side and the list of items too is severely restricted," he added.

Although there are three border trading points with China, the focus of both Governments is on Nathu La because of the limited trading potential at Lipulekh (Uttarakhand) and Shipkula (Himachal Pradesh) due to poor roads that peter out into mule tracks in the last leg. The road to Nathu La is relatively better due to gentler gradients.

As Indian exports are confined mainly to rice, the Government had commissioned a study by the National Council of Applied Economic Research (NCAER) to examine the problems and prospects of Indo-China trade through this viable border trading point. The NCAER report has made a strong case for expanding the list of tradable items because the existing list is based on the traditional exchange made 45 years ago.

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