THE OLD SETTLERS OF SIKKIM

Last Lap To Lhasa

The opening up of the Nathu La pass may be a goldmine in trade opportunities

by Jaideep Mazumdar

Published in Outlook on 5th Oct 2005

In the wind-swept remote reaches of the Himalayas, at 14,500 feet, even breathing requires considerable effort. But that didn't deter Indian and Chinese soldiers from playing a game of volleyball last week and, in the process, creating history. Nor will it deter hundreds of enthusiastic traders from doing business with China once the Nathu La pass, one of the highest in the world, opens in October. 

Chinese goods could go via West Bengal —first by sea to Calcutta and then by road to Tibet.

Overland trade between India and China will then be official.

The centuries-old trade route between India and Tibet through Nathu La, about 70 km up north from Sikkim's capital Gangtok, is to be reopened—the deal was signed between India and China during former prime minister A.B. Vajpayee's visit there in June '03. The route was closed on the eve of the Indo-China conflict in 1962, and since then Indian and Chinese soldiers have been staring down at each other—barely five feet separate them on either side of the barbed-wire fence that blocks the pass. But, come October all that's set to change. Sikkim and the rest of eastern India can hardly wait for the fences to go down. All arrangements, including the repair and renovation of the treacherous road from Gangtok, are nearly complete.

"A formal announcement on the reopening will be made very soon," says an enthusiastic Pawan Chamling, the Sikkim chief minister. He believes his state is perched on the "threshold" of history. According to Confederation of Indian Industry (CII) projections, the volume of trade through Nathu La would be about US $10 billion within a decade of the reopening. The Nathu La Study Group, an informal body comprising bureaucrats, trade specialists and members of the chambers of commerce set up by the Sikkim government, pegs the volume at Rs 206 crore within a year. "Trade through Nathu La may start slowly, but it will pick up with amazing speed. Right now, most people are unaware of the tremendous opportunities the reopening of this old trade route will unlock," says Indian Chamber of Commerce secretary general Nazeeb Arif.

Chamling is equally optimistic: "The trade will benefit the whole of eastern India, not just Sikkim. West Bengal will be one of the primary beneficiaries." Former foreign secretary and Nathu La Trade State Advisory Board chairman Muchkund Dubey concurs: "West Bengal, being the gateway to Sikkim, needs to get on board. It's a win-win situation for all." And it's not like Bengal doesn't share Sikkim's enthusiasm. Points out state industries and commerce minister Nirupam Sen: "Once the trade takes off, all goods will go through West Bengal. The Calcutta port will also see a boost in traffic." According to Sen, China will find it easier and cheaper to send goods to Tibet via West Bengal—first by sea to Calcutta and from there by road to Tibet.

To understand the infinite possibilities, one just has to look at the map of South Asia and China. It takes weeks now to drive from Beijing or Shanghai to Lhasa, Tibet's capital. And Tibet depends on China for everything, from hairpins and cloth to food and fuel. But the holy kingdom is far more accessible from Nathu La. Says Karma Gyatso, principal secretary in Sikkim's industries and commerce department: "It'll take half the time to reach Lhasa via Bengal and Sikkim." The 2003 protocol, though, had limited the trade to 29 items. "But we're revising the list to add 10-12 more items. We're sending the amended list to the Centre," said Gyatso. New Delhi issued a notification last week delegating powers to conduct international trade with China through Nathu La to Sikkim. Primary among the items to be exported from India are petroleum products, hardware, steel and food products. Imports will include electronic goods, among others.

Gyatso also dismisses fears that cheap Chinese goods would flood Indian markets."We should have confidence in our strengths.Such fears are irrelevant in this age of globalisation. We are strong in many sectors and we're ensuring that our strengths are leveraged through the medium of this trade," he says. Sikkim will issue travel passes and trade licences to traders. For the first five years, the trade licences will be issued to only Sikkimese citizens. "This is not protection. The traders of Sikkim (be they Nepalis, Bhutias, Lepchas, Tibetans, Marwaris or Bengalis) need a headstart since they're not as established as their counterparts in other parts of the country," Gyatso explains. Customs, immigration, IT connectivity, banking, quarantine for animals, shelters, warehouses and other infrastructural facilities are nearly complete at Sherathang (7 km short of Nathu La) which will be the staging post for the international trade. "China had proposed that for some goods the unloading from Indian trucks and loading onto Chinese trucks and vice versa should take place back-to-back at the zero point at Nathu La. We've agreed. But many items will have to be unloaded and inspected at the border," adds Gyatso.

Chief minister Chamling, meanwhile, is already looking beyond trade. The only route available to Indians travelling to Tibet is through Nepal right now. Through Nathu La, the distance would be reduced by more than half and the time by nearly a quarter. Nathu La, he believes, will boost ties with China, especially Tibet. "Many people in Sikkim and some other parts of the country have relatives in Tibet. I'll propose to New Delhi that we start a bus service from Gangtok to Lhasa," Chamling told Outlook.

Right now, for Indians, it takes more than a week from Kathmandu to reach Mansarovar in Tibet—the lake considered holy by Hindus. And another three days to reach Mount Kailash (the abode of Lord Shiva). It takes four days to reach Lhasa from Nepal's capital. And the tortuous roads defy description. "From Gangtok, it would take just 14 hours by road to travel the 584 km to Lhasa. I foresee a huge leap in the number of tourists and pilgrims who would want to travel to Tibet through Sikkim once Nathu La opens," says Chamling.

Sikkimese traders and tour operators are equally excited and hark back to the pre-1961 days when trade with Tibet flourished. "We used to export foodstuff, medicines and cloth and bring back wool and fur. It was more or less barter trade then," recalls Motilall Lakhotia, who was trading with Tibet way back in 1954. He and 200 traders from the Sikkim side had trade offices at Yatung, about 37 km across from Nathu La. "We used to send and bring back goods on mules and it used to take four days from Gangtok to Yatung. I had about 60 people working for me. Trade volume was about five lakh rupees a year in the 1950s," he says. Tshering Bhutia, owner of Shangri-La Travels, plans to double his existing fleet of 15 SUVs to cope with the expected rush once Nathu La reopens.

Come October, and the 'roof of the world', as Tibet is called, will be stripped of its centuries-long seclusion and aloofness. Nathu La will show the way.