Beijing: The recent decision to reopen the trading route at the Nathula Pass, that links Sikkim with Tibet, can greatly revive India-China trade. That the pass is equidistant from Lhasa and Kolkata increases its importance.

Currently, China and India trade mostly by sea. Indo-Tibetan imports and exports are mainly routed through Tianjin, a port city in the north an hour or so from Beijing, involving a detour of thousands of kilometres.

Tibet, a landlocked and impoverished part of China, has been left behind even as coastal regions in the mainland's east have benefited from investments and jobs in trade-linked manufacturing.

The region is thus expected to benefit much from the resumption of border trade at the Nathula Pass. According to China's Xinhua news agency, Vice-Chairman of the Tibetan autonomous region Hao Peng said: "If only 10 per cent of the trade goes through the pass it means at least more than $ 1 billion a year."

Trade had touched a record $18.73 billion by the end of 2005, up 37.5 per cent from the previous year, according to the Chinese Ministry of Commerce.

The bilateral trade volume is expected to exceed $ 20 billion this year.

Iron ore and livestock products from India and wool, herbs and electric appliances from China can be transported through the pass, Mr. Hao said.

Product list

However, according to the notice issued by the Director-General of Foreign Trade in India earlier in the month, the list of 29 items for export to China through the trade route does not include iron ore.

Farm implements, blankets, copper products, bicycles, clothes, coffee, tea, barley, rice, flour, dry fruit, dyes, spices, watches, shoes, utensils and agro chemicals are, however, included in the list among other products.

China is allowed in its turn to export 15 products to India including wool, goat cashmere, goat skins, yak tails, yak hair, horses, salt, silk, borax, butter and China clay. Electrical appliances are absent from the list.

Businessmen thrilled

The prospect of the reopening of border trade has sent ripples through trading communities in Sikkim and businessmen to the north of the border are thrilled at the prospect of new opportunities.

According to Xinhua, Wang Ping, head of the Yadong county government, said that more than 30 business people came to Yadong in the first quarter of this year for investment talks, while only two or three came in the same period last year. Yadong is the part of Tibet that directly borders Sikkim.

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