Geographic & Strategic Context

• Lipulekh Pass

• Located at the tri-junction of India (Uttarakhand’s Pithoragarh district), Nepal (Darchula district)
  and Tibet (China’s Ngari Prefecture)
• Elevation: ~5, 000 meters.
• Serves as a trade and pilgrimage route—especially for Kailash Mansarovar Yatra in Tibet.
• Historically used for border trade between India and Tibet since at least the mid-20th century.

 

• Disputed Area

• Nepal claims Lipulekh, Kalapani, and Limpiyadhura (~372 sq km area) as its teritory.
• India considers it part of Uttarakhand, while Nepal says it falls under Darchula district.

 

Historical Background of the Dispute

01. Treaty of Sugauli (1816)

• Signed between the Kingdom of Nepal and the British East India Company.
• Defined boundary using the Kali River (Mahakali) as the western border of Nepal.
• Dispute arises: Where is the origin of Kali River?
• Nepal claims it begins at Limpiyadhura, giving itrights over Kalapani-Lipulekh.
• India claims the river originates below Kalapani, keeping the disputed areas within India.

02. Post-Independence Usage

• India continued to use Lipulekh for trade with Tibet and for the Kailash Mansarovar route.
• Nepal remained relatively silent until the 1962 India-China war, after which India deployed military presence in kalapani for security.

03. Agreements with China

• 1954 : India and China signed a trade agreement, including Lipulekh as a trade route.
• 2015: During PM Modi’s visit to China, India and China agreed to expand trade through Lipulekh.Nepal protested strongly.
• 2020: Nepal released a new political map including Lipulekh, Kalapani, and Limpiyadhura within Nepal’s boundaries.

Recent Developments(2025)

• August 19, 2025
• India and China agreed to resume border trade through three passes;
  1.Lipulekh (Uttarakhand-Tibet)
  2. Shipki La (Himachal Pradesh-Tibet)
  3. Nathu La(Sikkim-Tibet)
• Decision came during Chinese Foreign Minister Wang Yi’s visit to New Delhi.
• Seen as a sign of thaw in India-China relations after years of border tensions.

 

August 20, 2025

Nepal’s Ministry of Foreign Affairs issued a strong statement:
Called India-China understanding on Lipulekh “unacceptable and a violation of Nepal’s sovereignty”.
Demanded that third-party agreements should not include Nepali territory

India’s Response

• India rejected Nepal’s objection, calling it “unjustified and untenable”
• Stated that:
• Trade through Lipulekh has existed since 1954, nothing new was created.
• Nepal’s claim is not backed by historical facts or evidence.
• However, India also said it is open to constructive dialogue with Nepal.

Nepal’s Perspective

Sovereignty & Nationalism

• Lijpulekh has become a symbol of teritorial pride in Nepal.
• The 2020 constitutional amendment that included Lipulekh in Nepal’s map was passed unanimousl)by all parties.
• Nepal argues that India-China bilateral deals in Lipulekh ignore Nepal’s sovereign rights.

 

Strategic Concerns

• Nepal fears that being excluded from India-China arrangements reduces its strategjic relevance in the Himalayas.
• Sees this as India and China sidelining Nepal in a region where its geography should give it leverage.

 

India’s Perspective

Historical Usage

• India argues that Lipulekh has been under Indian administration for decades.
• Used by pilgrims, traders, and security forces.
• Nepal did not object until recent years.

 

Security & Trade

• Lipulekh is strategically important for monitoring movements along the India-China border
• Resuming trade helps normalize India-China ties, especially after the 2020 Ladakh clashes.

 

Diplomatic Balancing

• India seeks to maintain good relations with Nepal but is unwilling to cede ground on strategic territory.
• By rejecting Nepal’s claim but offering dialogue, India signals firmness but avoids escalation.

China’s Role

• Pragmatic Approach

• China benefits from trade resumption via Lipulekh as it connects Tibet with Indian markets.
• By dealing directly with India, China sidelines Nepal.

 

Geopolitical Significance

• China is aware of Nepal’s sensitivities but prioritizes India-China stability over Nepal’s objections.
• It has historically signed trade agreements with India including Lipulekh, without consulting Nepal.

 

Implications

For Nepal

• Strengthens domestic nationalism, as political parties unite on sovereignty claims.
• But risks being perceived as a minor player ignored by bigger neighbors.
• Might push Nepal closer to internationalizing the issue, e.g, raising it at the UN or seeking global support

 

For India

 

• Trade resumption with China through Lipulekh signals normalization in ties
• .But creates friction with Nepal, a key neighbor in South Asia.
• India must balance its China strategy with its “INeighbourhood First” policy.

 

For China

• Gains an additional stable trade route with India.
• Strengthens image of diplomatic pragmatism with India.
• Risks being seen as disregarding smaller neighbors like Nepal.