By Syed Zarir Hussain, IANS
Gangtok : India is holding a commemorative function Thursday in the north-eastern state of Sikkim to mark the first anniversary of the historic re-opening of the fabled Silk Road for border trade with China.
On July 6 last year, the two Asian giants re-opened trade across the 15,000-feet (4,545-metre) Nathu La Pass, 52 km east of Sikkim's capital Gangtok, as part of a broader rapprochement. The move marked the first direct trade link between the nuclear-armed neighbours since a bitter border war in 1962.
"The symbolic function to mark the successful completion of a year of border trade through Nathu La is being held in Gangtok involving traders and representatives from the Sikkim Chamber of Commerce, besides the Confederation of Industries of Sikkim," Saman Prasad Subba, director of industry and commerce in Sikkim, told IANS.
Under an agreement reached between the two countries trade takes place four days a week – Monday to Thursday – beginning May 1 each year and lasting until November 30 when snow makes the area impassable. "In the first two months of trading this year, Indians did business worth Rs.6,37,000, while Chinese traders were able to sell goods worth just Rs.32,900," Subba said.
The sluggish border trade between the two countries is due to restrictions in tradable items – India can import 15 items from China including silk, yak pelts and horses, and export 29 items, including textiles, tea, rice, vegetables and herbs.
"There is a need for broadening the list of both importable and exportable items for boosting trade. The Chinese traders have been selling just yak pelts and it is imperative that the two countries decide to review the present export-import list," said S.K. Sarda, president of the Sikkim Chamber of Commerce.
Businessmen from both sides of the border were also seeking a broadening of the list of items traded through the Nathu La pass.
"The Sikkim government has already proposed to the government of India to review the list of items and has suggested at least 100 items for export. The proposal is said to be under consideration," Subba said.
Tibet's commerce department said bilateral trade in the first season from July 6 to Sept 30 through Nathu La saw business worth 1.49 million yuan ($196,000) last year.
In the same period, Indian traders did business worth Rs 1.2 million ($26,000).
Although two-way trade was slow last year, about 900 Chinese traders crossed the border separated by a rusty barbed wire marker to the market of Sherathang, five km below the pass on the Indian side. About 400 Indian traders headed to the Renqinggang market on the Chinese side, 16 km from the border.
"The prospects of booming trade through Nathu La is very encouraging if a proper assessment is made to find out what products are in demand on either side of the border," Subba said.
The Sikkim government has also urged New Delhi to sign a pact with Beijing to allow tourists to use the border pass.
"At present, only traders are allowed to cross over and if tourism is opened it would be economically beneficial for both countries," Subba said.