Nathu La - Economy

Economy

Up until 1962, before the pass was sealed, goods such as pens, watches, cereals, cotton cloth, edible oils, soaps, building materials, and dismantled scooters and four-wheelers were exported to Tibet through the pass on mule-back. Two hundred mules, each carrying about 80 kg of load were used to ferry goods from Gangtok to Lhasa, which used to take 20–25 days. Upon return, silk, raw wool, musk pods, medicinal plants, country liquor, precious stones, gold and silverware were imported into India. Most of the trade in those days was carried out by the Marwari community, which owned 95% of the 200 authorised firms.

Since July 2006, trading is open Mondays through Thursdays. Exports from India exempted from duty include agricultural implements, blankets, copper products, clothes, cycles, coffee, tea, barley, rice, wheat, flour, dry fruits, vegetables, vegetable oil, tobacco, snuff, spices, shoes, kerosene oil, stationery, utensils, milk processed products, canned food, dyes, and local herbs. Chinese exports to India exempted from duty include goat skin, sheep skin, wool, raw silk, yak tail, yak hair, china clay, borax, butter, common salt, horses, goats, and sheep. Restrictions are placed on traders, with permits only given to those who were Sikkimese citizens before the kingdom merged with India in 1975.

There were fears among some traders in India that Indian goods would find a limited outlet in Tibet, while China would have access to a ready market in Sikkim and West Bengal. The reopening of the pass was expected to stimulate the economy of the region and bolster Indo-Chinese trade but this has not happened. Figures released by the Tibet Autonomous Regional Bureau of Commerce show that in the 51 days of trading in 2006, only US$186,250 worth of trade passed through Nathu La.

On the Indian side, only citizens of India can visit the pass on Wednesdays, Thursdays, Saturdays and Sundays, after obtaining permits one day in advance in Gangtok. The pass would be particularly useful for pilgrims visiting monasteries in Sikkim such as Rumtek, one of the holiest shrines in Buddhism. For Hindus, the pass reduces the journey time to Mansarovar Lake from fifteen to two days.

A major concern of the Indian government is the trafficking of wildlife products such as tiger and leopard skins and bones, bear gall bladders, otter pelts, and shahtoosh wool into India. The Indian government has undertaken a program to sensitise the police and other law enforcement agencies in the area. Most of such illicit trade currently takes place via Nepal.