This is an interesting article about India china trade coriidor through Himalayas
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Trans Himalayan Trade & Development 2020
Looking Beyond Nathu La
China Research Programme
Institute of Peace and Conflict Studies (IPCS)
IPCS Task Force Report
July 2012
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About the IPCS Task Force
The Task Force was constituted to suggest
recommendations and provide an alternative
blue print to enhance Nathu La border trade.
Led by Amb TCA Rangachari, Mr Jayadev
Ranade and Prof Madhu Bhalla, the Task Force
included Prof Srikanth Kondapalli, Mr Ravi
Bhoothalingam, Bhavna Singh, Panu Pazo,
Bhim Subba, Teshu Singh and Namrata Hasija.
The Task Force met regularly during 2012, and
in the process the focus expanded further to
include the potential of economic engagement
between India and China and their
neighbours including Nepal, Myanmar and the
others in the region.
D. Suba Chandran
Director, IPCS.
© Institute of Peace and Conflict Studies 2012
China Research Programme
INTITUTE OF PEACE AND CONFLICT STUDIES
B7/3, Safdarjung Enclave
New Delhi, 110029
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Introduction
The IPCS task force has been constituted with an objective to present a roadmap
on ways to increase the potential of economic engagement between India and
China and their neighbours including Nepal, Myanmar and others in the region.
The primary aim of the Task Force is to bring attention to the prerequisites of a
strategy for inclusive growth through maximum focus on the bordering regions.
In view of the opening of the border trade via Nathu La in Sikkim in 2006, it recommends
that the pace of reforms in the bordering regions for better connectivity
and trade opportunities be accelerated.
Titled “Trans-Himalayan Trade and Development 2020: Looking Beyond Nathu
La,” the report strongly believes that India has a window of opportunity presented
by the current economic and political situation in the region in which to
maximise the benefits and prevent, development from bypassing its communities
in these regions. India’s attempts at facilitating economic exchanges with
China will benefit all players in Southern Asia. Moreover, the intangible gains in
terms of acquiring a substantial stature within the region will also be important
for India.
Endorsing a regional approach, the report recommends going beyond border
trade on select points along the India-China border. The report suggests a three
tier approach – at domestic, sub-regional and bilateral; and at three levels – to
expand the current level of economic interactions, build infrastructure corridors
within India and facilitate trade corridors across the India-China border.
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Trans Himalayan Trade and Development 2020
Looking Beyond Nathu La
Recommendations of the IPCS Task Force
Having started a border trade with China across Nathu La in 2006,
Affirming the need to continue this initiative and expand economic interactions
along the India-China border,
the IPCS Task Force recommends the various ministries of the Union Government
and the concerned State governments to:
1. Engage in a three tier approach at three levels
1.a. Engage in a three tier trans-Himalayan approach at domestic, subregional
and bilateral levels.
Three Tiers
1.b. In the first tier, improve the inter and intra-state infrastructure
along the India-China border in all states starting from J&K to India’s
Northeast.
1.c. In the second tier, improve connectivity between India’s border
states with neighbouring countries along the India-China border, especially
Nepal, Bhutan, Bangladesh and Myanmar.
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1. d. In the third tier, expand connectivity in the border areas for
trade with China and beyond.
Three Levels
1.e. At the first level, expand the existing border trade by increasing
the number of items on the permissible list and encourage trade-inservices.
1.f. At the second level, build corridors between the rest of India and
the region, to facilitate the movement of people and goods with border
points along the India-China border.
1.g. At the third level, explore opportunities of constructing “India-
China Friendship Highways” to facilitate bilateral trade in future and
also for “trade corridors” linking the rest of South Asia (mainly Nepal,
Bhutan and Bangladesh) and Southeast Asia.
2. Build infrastructure and improve backward integration
2.a. Build adequate physical infrastructure within each state along
the India-China border and improve road, rail and air connectivity.
2.b. Build dry ports and airports in the above states with adequate
infrastructure to engage in trade with China and other neighbouring
countries.
2.c. Create more trade depots along the trans-Himalayan region that
would assist the movement of people and goods at the aforementioned
second and third levels of interactions.
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2.d. Within Sikkim, construct alternative routes between the entry
point (Rang Po) and the two passes – Nathu La and Jelep La. Create
adequate infrastructure in Rang Po as a trade depot and connect the
town with the border points and the rest of India.
2.e. Augment local capacities within the states to address expansion
of trade and to ensure that development benefits the local communities.
2.f. Promote language and entrepreneurial skills and encourage local
traders in the border states to interact with the border regions of
neighbouring countries including China, especially Tibet. This can be
addressed by setting up educational institutions on both sides catering
to local needs.
2.g. Build better facilities at the trading points/marts along the border
with sufficient space, accommodation, banking and communication
facilities.
2.h. Hasten the work on road infrastructure and encourage publicprivate
partnership, and consider foreign assistance that would be
based on “Build-Operate-Transfer” mode to ensure timely completion
of road and related infrastructure projects.
2.i Create appropriate trade corridors and link the border states with
the rest of India, especially golden quadrilateral, including the ports
of Kolkata, Mumbai and Vishakhapatnam.
2.j. Upgrade existing airfields in the border states for the use of light
aircrafts for the movement of passengers and freight. Also hasten the
work on airport in Pakyong, Gangtok.
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3. Expand the trade basket of Nathu La border trade
3.a. Undertake a market survey in Tibet and other neighbouring regions
in collaboration with the local Chambers of Commerce across
the trans-Himalayan region.
3.b. Since the current list of tradable items across Nathu La is inadequate
(despite the recent upgrade) to benefit the local communities,
the trade basket should be expanded.
3.c. Both governments should ensure the creation of trade representations
and offices in each other’s territories.
3.d. Create “Export Promotion Zones” within Sikkim and neighbouring
states.
3.e. Reduce the rhetoric and fear of being flooded by cheap Chinese
products along the border regions.
3.f. Organise regular “Trade Fairs” and revive the old ones along the
border points.
4. Engage in Trade-in-Services
4.a. Promote the tourist potential of the border states and make use
of the charm of the Himalayas and Buddhist circuits among the international
tourists.
4.b. Engage with Beijing to open the Kailash-Mansarovar route via
Demchok in Ladakh, J&K.
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CHINA RESEARCH PROGRAMME
Institute of Peace and Conflict Studies (IPCS)
B7/3 Safdarjung Enclave, New Delhi, 110029
Tel: 011-41001900
Email:
ipcsevents@gmail.com
4.c. Engage Beijing towards launching a “Gangtok-Lhasa Friendship bus service”.
4.d. Encourage tourism along the above two axis targeting both international
and domestic tourists.
4.e. Develop the potential of medical tourism.
4.f. Promote educational services like IT, English language and hotel management.
4.g. Consider the feasibility of a “Trans-Himalayan Energy Grid”.
5. Remove Travel Restrictions within Border States
5.a. Remove travel restrictions for Indian nationals within the border states, especially
in Ladakh and Sikkim.
5.b. Subsequently, remove the Inner Line Permit system.
http://www.ipcs.org/1207-ChinaTaskForce3.pdf
