India Rejects Nepal’s Objections Over Lipulekh Pass Trade With China

In a significant diplomatic development, India and China have agreed to reopen border trade through three Himalayan passes—Lipulekh in Uttarakhand, Shipki La in Himachal Pradesh, and Nathu La in Sikkim. The decision was announced during Chinese Foreign Minister Wang Yi’s visit to New Delhi on August 18–19, 2025. The move is seen as an effort by both countries to revive cross-border exchanges, strengthen economic links, and stabilize ties that had been strained in recent years.

The Lipulekh Pass, historically a vital gateway for traders and pilgrims heading to Kailash Mansarovar, had been used for trade since 1954. However, operations were suspended in recent years due to disruptions, including the COVID-19 pandemic. Its reopening marks an important step toward restoring traditional routes that once sustained local economies and cultural connections.

MEA Spokesperson Randhir JaiswalImage Source : PTI | India TV News

Nepal’s Objection and Territorial Claim

Nepal quickly voiced strong opposition to the agreement, reiterating that the region comprising Limpiyadhura, Lipulekh, and Kalapani is part of its sovereign territory. Kathmandu argued that the 1816 Treaty of Sugauli established the Mahakali River as the boundary, and since the river originates from Limpiyadhura, the areas east of it rightfully belong to Nepal.

In line with its constitutional provisions that incorporated these territories in 2020, Nepal urged India to halt trade and infrastructure activities in the disputed region. Nepalese officials described India’s and China’s decision to move ahead without consultation as a direct challenge to their sovereignty.

India’s Firm Response

India dismissed Nepal’s remarks as “unjustified, untenable, and devoid of historical facts.” The Ministry of External Affairs (MEA) emphasized that Nepal’s claims were a result of an “artificial enlargement” of its territorial boundaries. It also underlined that trade through Lipulekh was not a new arrangement but a continuation of decades-old practice.

MEA spokesperson Randhir Jaiswal highlighted that India had facilitated trade with China via Lipulekh since 1954, long before Nepal raised any objections. He further stressed that historical records and administrative practices supported India’s position. New Delhi made it clear that Kathmandu’s claims could not undermine India’s sovereign rights in the area.

Scope for Dialogue

Despite rejecting Nepal’s territorial assertions, India underscored its readiness to engage in constructive dialogue with Nepal to address boundary disputes. The MEA reiterated that sensitive issues must be handled through diplomatic channels and mutual respect.

Analysts believe this dual approach—firmly rejecting Nepal’s objections while keeping the door open for dialogue—signals India’s intent to maintain stability in South Asia even as it balances relations with China.

Historical and Strategic Context

The Lipulekh region has long been a flashpoint between India and Nepal. Tensions escalated in 2015 when India and China agreed to expand trade through Lipulekh, prompting protests in Kathmandu. In 2020, India’s inauguration of an 80-km road to the pass further fueled controversy, leading Nepal to release a revised political map including Lipulekh, Kalapani, and Limpiyadhura as part of its territory.

For India, however, the route holds not just economic but also strategic importance. It serves as a key channel for border trade, facilitates the Kailash Mansarovar pilgrimage, and strengthens India’s connectivity with Tibet. In the broader context, the reopening of the pass also fits within the ongoing thaw in India–China relations, marked by efforts to normalize border stability, resume flights, and expand trade in the face of global economic realignments.

Conclusion

The reopening of the Lipulekh Pass has revived old disputes while simultaneously strengthening India–China economic engagement. For Nepal, the issue continues to be a matter of sovereignty and national identity, while for India it remains a question of historical legitimacy and strategic necessity.

Although New Delhi has firmly rejected Kathmandu’s claims, its call for constructive dialogue offers a diplomatic path forward. The situation underscores the delicate balance India must maintain in its neighborhood policy—managing long-standing disputes with smaller neighbors while fostering cooperation with a major power like China. Whether dialogue can ease tensions remains to be seen, but the Lipulekh Pass is once again at the heart of South Asia’s complex geopolitical dynamics.

Sources: India Today, Hindustan Times, India TV News)