India and China are quietly discussing the revival of border trade after a five-year freeze — a potential signal of thawing ties following deadly military clashes and years of silence, according to a Bloomberg report.
Officials in New Delhi reportedly confirmed talks to resume the exchange of locally made goods through three trade points along the disputed Himalayan frontier. The discussions remain private, Bloomberg said, citing unnamed government sources.
Beijing, the report claimed, has backed the idea, saying it’s “willing to step up communication and coordination with India,” and called border trade a key lifeline for residents on both sides.
The trade — valued at just $3.16 million in 2017–18 — involved items like spices, carpets, wooden furniture, medicinal herbs, and wool. It was suspended during the Covid-19 pandemic, coinciding with a sharp drop in relations after the 2020 Galwan Valley clash that killed 20 Indian and at least four Chinese troops. The claims remain unverified by BT, and there has been no official response from the Centre.
Both sides appear to be inching toward normalization. Direct flights between India and China are expected to resume next month, Bloomberg reported earlier this week. Beijing has also eased restrictions on some fertilizer exports to India.
Prime Minister Narendra Modi is expected to visit China in August for the Shanghai Cooperation Organisation summit — his first trip there in seven years — with a bilateral meeting with President Xi Jinping likely on the sidelines.
While border trade itself is economically minor, its revival would mark a shift in tone between the two nuclear-armed neighbors. It also comes as India’s trade tensions with the U.S. grow. Former President Donald Trump had imposed 50% tariffs on Indian goods — far steeper than those faced by India’s regional peers.
Whether the current talks lead to lasting change remains unclear — but for now, both capitals are signaling a willingness to talk again.
